A major change in how Social Declarations are filed is underway in France. A new automated process called “Déclaration Sociale Nominative,” DSN, for Social Contributions is being implemented across France and is applicable to all Employers and Payroll Providers. The following are the key points:
1. To meet DSN requirements any organization providing Payroll Services in-house or outsourced will need to comply by January 2016. This new DSN requirement includes installing special software within the payroll system. DSN will replace and automate the manner in which all Social Declarations are filed.
a. It is being called “machine to machine” transfer. It will be an easier and more secure means for companies to declare salary information and social data.
2. Starting May 2015, DSN will be compulsory for companies who have paid an annual amount of contributions, over 2013, to Urssaf fixed at either more than 2 million € for employers who directly declare their contributions or more than 1 million € for employers who have recourse to a third party declaring for their reporting.
3. Here are some key changes to the way data is to be provided to Payroll Providers:
a. Employee Hires:
i. For employees hired under fixed-term contract, apprentice contracts or trainees, the company will need to provide the estimated term date of the contract.
b. Medical Leave:
ii. When the medical leave is not subject to subrogation, the information is to be provided within 5 days after the 1st day of the leave.
iii. Starting July 2015, the certificate of recovery will no longer be needed. The payment of the social security reimbursements will only be done on the basis of the information provided through the DSN mode.
iv. Clients must provide, within 3 days after a leave event, a record of that leave for sickness, maternity and paternity leaves not under the subrogation process.
c. Leaving of an Employee:
i. It will be necessary to provide the leave data as soon as the Employer is informed minimum 3 workdays before the leaving date.
d. Monthly Changes:
i. All premiums/bonuses will need to be provided with the corresponding applicable dates they refer to.
e. Other Impacts:
i. Employees with employment contracts being suspended for parental leave or sabbatical leave still need to receive a pay slip.