Portage salarial: advantages, disadvantages and pitfalls to avoid

Freelance administration is the opportunity to create your own business as a freelancer while having the status of an employee. The idea is to have a permanent or fixed-term employment contract.

The job of Nocode Maker is an ideal situation to carry out a professional activity as a freelancer. Indeed, it is interesting to vary the projects, the companies and to build up a portfolio of projects and to specialise on specific tools or problems.

At the end of the 12-month Nocode Maker training course,Alegria.academy students have a solid background and a well-stocked portfolio thanks to the numerous practical cases and the nine months of work-study specialisation. They are perfectly equipped to start their own business. 🧳

But like many freelancers, you sometimes miss the benefits of a permanent contract. Paid holidays, pension contributions, fixed income... What if there was a perfect mix between freelancing and permanent employment?

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Definitions, advantages, disadvantages, limitations and pitfalls of freelance administration... here's everything you need to know before you embark on this tripartite relationship between freelancer, company and administration company. 👨👩👧

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What is freelance administration?

Freelance administration is considered to be a three-way relationship either ⬇️

In concrete terms, the freelancer, or ported employee, contacts a portage company. The latter will hire the freelancer on a permanent basis and then sign a contract between the client company, the portage employee and the portage company. 

In this tripartite contract, the employee continues to work independently. However, instead of receiving payment for his assignments directly into his bank account, he invoices his clients via his freelance administration company. The latter then converts the turnover into a salary, paying social security contributions, employer's contributions and income tax in the process.

But what are the advantages and disadvantages of freelance administration?

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What are the advantages of freelance administration? ✅

• Easier to borrow 🏦: Banks lend more easily to a self-employed person in portage, because he benefits from the same social protection as an employee (including unemployment in particular) and because technically he is on a permanent contract.

• The administrative side? A piece of cake 💁 It is the freelance administration company that takes care of receiving payments, settling social security contributions, deducting tax at source, declaring professional expenses, etc. 

Freelance administration does not require the creation of a dedicated legal structure. In other words, it is a bit like (re)becoming an employee. Someone takes care of most of your formalities for you. This is probably one of the most appreciated advantages of freelance administration.

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• Complete social protection 👉: in portage, you have access to unemployment and retirement, like a classic employee. Health insurance, provident fund and professional liability insurance are also compulsory, which guarantees you a high level of protection.

• Preserve your freedom...🕊 : Despite a salaried status, you remain free as a freelancer: you manage your time as you wish, you choose your clients and your missions freely and you negotiate your salary... You are even free to terminate your freelance contract when you feel like it

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What are the disadvantages of freelance administration? ❌

• The level of charges: in portage, freelancers pay about 45% of charges. Compared to the 22% of charges in a micro-enterprise, the difference is high. It is true that professional expenses make it possible to optimise this amount. But the fact remains that the status is sometimes considered expensive compared to the micro-enterprise. On the other hand, this level of charges is close to the level observed in a commercial company (SASU, EURL).

• Limited eligibility: unfortunately, freelance administration is not open to all self-employed people. It requires fairly restrictive conditions in terms of qualifications and activity, as detailed in the collective agreement on freelance administration. If you invoice private individuals, work in a regulated profession or charge less than the threshold defined by the agreement, you will not be eligible for the status.

• Your profitability 💳 : in freelance administration, your salary is not guaranteed. You must have enough resources so that the freelance administration company can pay you a salary.

• The cost 💰 : Whether it is deducted from your turnover or takes the form of a fixed price, freelance administration is not free. It is therefore important to study the different offers available on the market in order to find the one that will suit you best. For many freelancers, the cost of freelance administration is a difficult disadvantage to overcome.

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Portage salarial, trap?

⚠️Mind you, this is not really a trap, but freelancing and working abroad are generally not compatible: freelancing is always attached to a country.

For example, if the freelance administration company is French, the freelancer will have to be a French tax resident. However, there are solutions for projects with an international dimension. In this case, international freelance administration can be requested and will have the same operating mode as traditional freelance administration.

This method concerns all types of missions, long or short. It should be noted that the consultant will carry out his missions as an expatriate of the country of origin.

If the life of a digital nomad appeals to you, think carefully about how you want to build your expatriation project.

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Portage salariale and salary

How much does freelancing cost? 💸

In order to become a freelancer, you have to pay a management fee to your freelance administration company. Most companies charge a fee of between 3 and 10% of turnover.

Editor's Choice 👇

For our part, we often recommend the following company: Jump 🚀

Jump is a comprehensive and less expensive freelance administration company than other platforms on the market. It offers a fixed subscription fee of €79 per month and a fully digitised course.

NB: we are not a partner of Jump.

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Portage Salarial and risks

Freelance administration is an excellent tool that allows both the company and the subcontractors to gain in flexibility and work comfort. 

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But what are the risks of freelancing? 

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At the legal level, freelancers fall within the legal framework of fixed-term or open-ended employment contracts. Thus, they do not have to make payments to the Urssaf, as the freelance administration company takes care of this for them, and the risks of contract requalification are greatly reduced. Indeed, many freelancers currently work illegally with one company instead of several. In this case, the freelancer can request a reclassification of the nature of his collaboration with the said company and obtain a permanent contract. This can generate costs for the employer.

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