Auto-entrepreneur charges explained in a few minutes
by Jordan September 11, 2023 · Business / News
Being an auto-entrepreneur means being both your own boss and responsible for your own financial management. The success of this entrepreneurial adventure depends to a large extent on a clear understanding of the charges incurred by the micro-entrepreneur.
But what exactly are these charges? How do you calculate, estimate and pay them? And what other expenses need to be taken into account for optimal management of your micro-business?
Whether you’re just launching your business or already well established in the world of auto-entrepreneurship, it’s vital to have a clear vision of the social charges and other expenses you’ll have to pay. With this in mind, we invite you to discover the different facets of auto-entrepreneur charges in just a few minutes.
Social charges for micro-entrepreneurs: their usefulness and importance
The social charges are an essential part of an auto-entrepreneur’s financial responsibilities. They are used to finance social protection for the self-employed and their families, particularly in terms of health, retirement and unemployment insurance. These charges are calculated as a percentage of the sales generated by the micro-enterprise.
Understanding social charges is more than necessary, as they have a direct impact on the micro-entrepreneur’s net income. By being informed and anticipating these charges, the auto-entrepreneur can better manage cash flow and avoid financial difficulties. Likewise, compliance with legal obligations in terms of declaration and payment of social security charges is vital to avoid penalties and keep your auto-entrepreneur status in good standing.
| Type of business | Social security charges (%) | Taxes (%) |
|---|---|---|
| Sale of goods | 12,3% | 1% |
| Services | 21,2% | 1,7% |
| Liberal professions (BNC) | 21,2% | 2,2% |
Determining social charges for micro-businesses: methods and tips
To calculate the social charges payable, micro-entrepreneurs must apply a specific rate to their sales. This rate varies according to the nature of the activity carried out: merchant, craftsman or liberal profession. The applicable rates are set by law and change regularly. They take into account the various contributions (health, retirement, professional training, etc.) to which the auto-entrepreneur must contribute.
To facilitate the management of social charges, auto-entrepreneurs can opt for the payment in full discharge of income tax. This option enables you to pay social security contributions and income tax at the same time, by applying a single rate to your sales. To benefit from this option, you need to meet certain conditions, notably not to exceed a certain threshold of reference tax income.
Estimated social charges for auto-entrepreneurs
To estimate the social charges payable as an auto-entrepreneur, we recommend using a online simulator. These tools provide a precise estimate of the charges to be paid, based on forecast sales and sector of activity. They take into account the different rates applicable and any exemptions from which the auto-entrepreneur may benefit.
It is also possible to make a manual estimate by multiplying sales by the rate of social security contributions corresponding to the activity carried out. For example, if a self-employed entrepreneur generates sales of €10,000 in the retail sector, and the applicable rate is 12.8%, his social security contributions will amount to €1,280 (10,000 x 0.128).
Social security payment procedure for micro-businesses
Payment of social charges for auto-entrepreneurs is made via the sales declaration. This declaration must be made on a monthly or quarterly basis, depending on the option chosen when setting up the micro-enterprise. The auto-entrepreneur fills in an online form on the URSSAF website, indicating the amount of sales generated during the period in question.
The amount of social security charges payable is calculated automatically on the basis of the sales figures declared and the applicable rate. Payment can be made by direct debit, bank transfer or cheque. To avoid penalties and reminders from URSSAF, it is advisable to scrupulously respect payment deadlines and methods.
Other costs to consider when running a micro-business
In addition to social security charges, auto-entrepreneurs must take into account other costs associated with running their business. These include tax chargessuch as the contribution économique territoriale (CET) or income tax. You should also factor in ongoing expenses, such as rent, energy, supplies and travel costs.
Finally, it’s essential to anticipate any expenses related to theinvestment (equipment, training, business development) and complementary social protection (mutual insurance, provident fund, supplementary pension). Good cost management and anticipation of expenses enable auto-entrepreneurs to ensure the long-term future of their business and secure their income.
