What is the Foreign Firm Slip?

The Foreign Firm Slip (TFE) is a system intended to simplify the social formalities pertaining to the hiring of employees by companies that do not have an establishment in France.
 
To be an employer in France, these companies must be registered with the Urssaf Alsace and their employees must depend on the general Social Security plan, regardless of their nationality and their place of residence.
 
In order comply with the legislation, the employer must establish a Declaration prior to hiring (DPAE) and an employment contract. The employer must also provide his employee with a pay slip and pay the contributions to the social protection bodies.
 
The enrolment and declaration formalities for the TFE are carried out exclusively via Internet.
 
In order to guarantee their employees' rights to services, employers must contact, in parallel to their enrolment request for the TFE, the various social bodies that they depend on according to the national collective agreement that applies to their company in France:
  • health department in the workplace,
  • Job sector for unemployment insurance,
  • Humanis International for complementary retirement,
  • where applicable, a supplemental retirement, provident fund or health care body,
  • where applicable, the paid holiday fund for the construction sector in the Paris area (CCPBRP), or an interprofessional paid holiday fund for the transportation sector.

This step, which consists in filling out a registration dossier (with no registration fees, or extra cost in terms of contributions) is required for the proper management of the dossier of the company and of its employees.

The TFE is an optional system intended for companies that do not have an establishment in France.
However, companies that do use the TFE must use this service offering exclusively to declare all of its employees employed in France.
 
The TFE allows companies to manage all the wage earners, what ever ther work contract is (permanent contract - CDI, fixed-term contract - CDD). 
 
The TFE can be used for an employee that is already present in the company or for any new hirings.
 
There are however certain employees who cannot be managed in the TFE. These are employees whose contributions are calculated via reduced rates (artists, intermittent entertainment workers, journalists, etc.), intermittent entertainment workers who depend on the Guso or multi-card salespeople or canvassers.
 
The TFE is simple to use:

  • a single document to take care of all the formalities pertaining to the hire: Declaration prior to hiring (DPAE) and employment contract;
  • a single declaration for the social protection bodies that handle the collective and mandatory plans:
    • Urssaf (social contributions and other social taxes, unemployment insurance scheme),
    • Humanis International group for complementary retirement,
    • supplemental retirement fund,
    • provident fund body,
    • paid holiday fund for the construction sector in the Paris area CCPBRP for the paid holiday fund for the construction and public works (BTP) sectors,
    • interprofessional paid holiday fund in particular for the transportation sector; 
  • a single payment with the Urssaf Alsace for the mandatory social protection contributions owed to these bodies.

The management of the TFE is entrusted to the Foreign Firm national centre
 
Using the employer's declaration, the Foreign Firm national centre calculates the contributions due and sends the employer a breakdown of the social contributions*.
 
* On the contribution breakdown, the Foreign Firm national centre also mentions the amount of the contributions due to third-part bodies in the event of optional contributions that are not collected within the system  (optional retirement, optional provident fund, etc.).

   Social nominative declarat ion (DSN) -  Withholding of income tax at source
 
From employer's declaration, TFE center will
- etablish formalities and declaration for which DSN substitutes. In this frame, new formalities will be generated  : employer's unemployment certificate, work stoppage for illness declaration...
- manage withholding income tax at source as of entry into force of the reform
- calculate due contributions and make available a social contributions* countdown in employers space/rubrik edition. As of working period of January 2019, calculation of tax amount due by concerned employees according to rates provided by tax office will also be made.
 
*TFE Centre mentions also  on contributions countdown, the contributions amount to be paid to third bodies the optional contributions which are not recovered by disposal (optional complementary pension, optional forsight …)

 The Foreign Firm national centre also establishes:

  • the pay slip;
  • the monthly and annual summary statements in order to facilitate the posting of accounting entries;
  • the annual social returns for the employees declared within the framework of the TFE; 
  • the tax certificate for the employees, etc.

 

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