For public and private healthcare institutions, as well as all organisations in the social and solidarity economy, VAT and payroll tax represent a major tax issue. Taxation can feel like a double burden: partially recoverable VAT and a Payroll Tax that weighs heavily on the payroll.
Yet between full or partial exemptions, specific allowances, and the complexity of calculating the liability ratio, there are major sources of savings. In a context of dwindling public funding, …
VAT and Payroll Tax: Althéa’s positioning
Between technical expertise and on-the-ground reality: Payroll Tax as a source of funding.
At Althéa, we understand the interaction between these mechanisms and turn complexity into tangible financial opportunities.
We provide you with an exhaustive mapping of all your activities and the regimes that apply to them. A rigorous audit makes it possible to recalculate the amounts due accurately.
- The ability to regularize three years of payroll tax at once
Reimbursement of overpayments over three years can represent a significant cash inflow.
- Payroll Tax: a highly specific tax.
Between activities that are exempt by nature, specific allowances, rules specific to groups, full or partial exemptions… The multiplicity and complexity of regimes create overpayments.
- The VAT / Payroll Tax mirror effect
There is a direct link between the Payroll Tax liability ratio and the right to deduct VAT. Optimising one without measuring the impact on the other can create risk.
Methodology
Because every organisation is unique, Althéa deploys agile, tailored support arrangements. Our methodology is based on an on-the-ground analysis of your business activities and enables us to identify optimisation opportunities with precision while securing the long-term compliance of your practices.
Steps:
- Immersion in the client ecosystem: understand the specificities of your organisation and gain a detailed grasp of on-the-ground realities
- Secure internal practices: align tax obligations with operational realities
- Identify and activate savings levers: turn regulatory complexity into a source of savings
- Train your teams: we support your teams in adopting the new Payroll Tax processes
GDPR
With the growing importance of data security, we also ensure the protection of your information in accordance with the EU General Data Protection Regulation (GDPR).
Challenges
Access Comprehensive Expertise
Liability ratio, full or partial exemptions, statutory allowances, etc. There are numerous exemptions applicable to Payroll Tax. Our comprehensive review makes it possible to assess them all.
Understanding On-the-Ground Realities
SSE organisations and public or private healthcare institutions operate in a very specific way: staff may be assigned to one area, but they may also work across several activities and several sites. Our experience enables us to turn on-the-ground observations into optimisation opportunities.
Monitor Case-Law Developments
In Payroll Tax matters, case law evolves very regularly: Council of State rulings of 07/10/2021 concerning public nursing homes (EHPAD) and Payroll Tax, Council of State ruling of 19/12/224 concerning payroll tax and the continuation of full and half pay in the event of illness, Lyon Administrative Court of Appeal ruling of 27/04/2024 concerning supervisory staff in production activities, etc. It is essential to stay informed of developments and ensure compliance.
Choose Althéa as your partner to optimize your tax position!
Would you like to learn more or launch a project to optimise tax charges?
Business case
€103,000 in cash flow generated
Correct your payroll tax practices without changing your organization
Client profile:
- Sector: Medico-social (association)
- Size: Multi-site organisation – 500 to 1,000 employees
Issue:
A standard application of payroll tax without taking into account the VAT liability of part of the association’s activities.
Before our intervention:
A payroll tax that weighs heavily on the association’s payroll. A burden that even increases every year.
Our intervention:
Comprehensive analysis of all exemption schemes the association could be eligible for, depending on the missions carried out by its employees.
Results:
- Catch-up (Non-time-barred period): + €75,000
- Adjustment (Current year – via filing an amended return): + €28,000
- Total cash impact: €103,000
- Estimated recurring savings: ~ €30,000 / year
FAQ
Who is liable for payroll tax?
All employers established in France, when they are not subject to VAT or have not been subject to it on at least 90% of turnover.
How is payroll tax paid?
Payroll Tax consists of 11 fixed monthly instalments over year N (based on the amount due for year N-1) and a final return that determines the final amount of Payroll Tax actually due.
Who is your point of contact for payroll tax matters?
URSSAF is not responsible for Payroll Tax, contrary to what one might think. It is the territorially competent Business Tax Office (SIE) that handles Payroll Tax.
