URSSAF is one of the main employment stakeholders in France. In this article, we will explain and summarise it.
URSSAF is an acronym of Unions de Recouvrement des cotisations de Sécurité Sociale et d’Allocations Familiale.
This translates to Unions for the Recovery of Social Security Contributions and Family Allowances.
Every year, URSSAF collects and distributes 500 billion euros, which amounts to 22% of the annual wealth produced in France. The funds enable people to receive the benefits they are eligible for, from reimbursement of medical care to pensions and family allowances.
How does URSSAF interact with French businesses?
URSSAF inspectors monitor the correct application of rules governing the calculation, declaration, and payment of individual company contributions.
Any company can receive a URSSAF inspection, at any time. Companies are generally selected at random, with notice provided at least 15 days before the visit is made. Such notice should include:
- The intended date and time of the inspection.
- The name of the URSSAF inspector.
- The period of time to be covered by the inspection.
- A list of documents, such as tax notices and payslips, that must be made available to the inspector.
Companies cannot refuse an inspection, and must provide all of the listed documents. In some cases, such as suspected non-compliance with regulations that govern undeclared labour, the inspector may arrive at a company without prior notice.
During their visit, the URSSAF inspector will analyse the required documents and may also interview a selection of employees without the employer being present.
What happens after the URSSAF inspection?
Following their visit, the inspector will send the employer a letter detailing their observations. Their letter must state reasons for each point of redressement – or adjustment. The employer will then have 30 days to acknowledge and discuss the letter by registered return.
Following this stage, URSSAF will then formally notify the company of the redressement in full, along with a notice for payment.
In some cases they will notify companies of a partial or total cancellation of the redressement, though it should be noted that due to the complex nature of URSSAF regulations, many businesses will be asked to pay for something that has been missed.
Companies then have two months to appeal against the formal notice, should they want to.
A final settlement may be negotiated (with the exception of any issues of undeclared labour); however this can be a long and arduous process that will almost certainly require legal assistance.
Once an inspection has been carried out, companies will generally not receive another notice for three years. Occasionally, inspections performed by alternative bodies – such as the tax authority – may trigger an URSSAF inspection.
Our strong advice is for companies to make themselves fully available to the URSSAF inspector as needed, and ensure they prepare everything required for their visit.
We are happy to advise further regarding the role and activities of URSSAF and how they may impact your business in France. To arrange a free initial consultation, please get in touch.