Are you self-employed or work without an employment contract? Are you the majority manager of a limited liability company (SARL, from the French “société à responsabilité limitée”)? There’s a good chance you’re an unsalaried worker (TNS, or “travailleur non salarié”). This article will explore the main features of TNS status, what it is, its social security system, and its key benefits.

What’s in this article?

• What is a travailleur non salarié (TNS)?
  
• Who is considered a TNS?
  
• How does the social security system work for a TNS?
  
• Does a TNS earn a salary?
  
• What are the pros and cons of TNS status?
  
• What are the alternatives to TNS status?
  
• How do you become a TNS?
  

What is a travailleur non salarié (TNS)?

A TNS, or “travailleur non salarié”, is a self-employed professional working independently under their name. They work for themselves with full autonomy, meaning they set their own hours and conditions without being a subordinate to anyone. Unlike an employee, a TNS is not tied to an employment contract and does not earn a salary.

Who is considered a TNS?

Any self-employed person engaged in a commercial, craft, or professional activity – such as a sole trader – is considered a TNS. Some company directors and partners also have this status. These include:

• Majority managers of SARLs – those who own more than 50% of the company’s shares.
  
• Single owners of single-shareholder limited liability companies (EURLs, or “entreprise unipersonnelle à responsabilité limitée”) – sole partners who also serve as managing partners.
  
• Managers and partners of general partnerships (SNC, or “société en nom collectif”).
  

Note: Managers of SARLs with a minority or equal shareholding (up to 50% of the company’s shares), managers of simplified joint stock companies (SAS, or “société par actions simplifiée”) and public limited companies (SA, or “société anonyme”), and non-partner managers of SARLs are considered “assimilated employees”. This means they are covered by the general social security system.

How does the social security system work for a TNS?

Unsalaried workers are covered by the social security system for the self-employed (SSI, or “sécurité sociale des indépendants”). This special system features lower social security contributions than salaried employees and includes a unified tax and social security declaration.

Social security contributions are based on the previous year’s professional income but are adjusted to reflect the current year’s actual income. Contribution rates depend on the type of activity and the professional’s income. Learn more about contribution rates for self-employed workers on the Urssaf (“union de recouvrement des cotisations de sécurité sociale et d’allocations familiales,” or the French social security agency) website.

Note: When a business is formed and there is no actual income, contributions are calculated at a flat rate. These contributions are provisional and will be adjusted after the professional income is declared. The French government provides a social security contributions calculator for self-employed workers to estimate the amounts payable to Urssaf.

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Unified tax and social security declaration

To calculate contributions, you need to submit a unified tax and social security declaration. The annual tax return is filed electronically using Form 2042. During the process, a social security tab will automatically appear for your self-employed status. This declaration is mandatory, and your tax information will be sent to Urssaf, which is in charge of collecting social security contributions.

Contributions to be paid

Social security contributions to be paid to Urssaf include those for:

• Sickness and parental leave insurance
  
• Basic and supplementary retirement benefits
  
• Pension benefits
  
• Disability and death insurance
  
• Family allowances
  
• Vocational training
  
• General social contribution (CSG, or “contribution sociale généralisée”) and contribution for the repayment of social debt (CRDS, or “contribution au remboursement de la dette sociale”)
  

Note: Social welfare benefits for the self-employed are not as extensive as for employees. It’s a good idea to take out additional insurance, such as supplementary health and disability insurance, to improve your social security coverage.

Does a TNS earn a salary?

A TNS is free to set their own pay. This can be monthly payments, bonuses, or dividends. The annual tax return allows unsalaried workers to declare their income.

What are the pros and cons of TNS status?

TNS status offers several advantages, including:

• Greater freedom to decide how your business is run and how much you earn
  
• Lower costs for the business, with significantly lower social security fees – between 30% and 50%, depending on your pay
  
• An annual tax return
  
• More flexible administrative management – no pay slips, no boss, etc.
  

However, the TNS system also has some drawbacks:

• Less comprehensive social security coverage, which means no unemployment insurance and no protection for industrial accidents, occupational illnesses, or stopping work.
  
• Dividends are subject to social security contributions.
  
• A system requiring additional insurance for maximum protection.
  
• Minimum social security contributions must be paid, regardless of whether a TNS manager receives no pay.
  
• A complex contribution payment system, including instalments and deferred regularisations.
  

What are the alternatives to TNS status?

An “assimilated employee” position is the only alternative to TNS status. It can only be used by directors of one of the following:

• SA
  
• SAS
  
• SASU (single-shareholder simplified joint-stock company, or “société par actions simplifiée unipersonnelle”)
  
• SARL (minority or equal shareholder manager)
  
• EURL (non-partner manager)
  

Being an assimilated employee costs the company more, but the manager gets better social security coverage, dividends exempt from social security contributions, and a 10% deduction from taxable income.

How do you become a TNS?

To become an unsalaried worker, you must fill in the TNS declaration (Cerfa form 11686/09), which you can download by clicking the link above. Print and complete this form when incorporating or amending the articles of association, or changing the director. You must attach it to the appropriate administrative form for your situation, such as M0 for incorporating a company, M2 for amending the articles of association, or M3 for changing the director. Finally, you must submit your forms to the Commercial Court registry (“greffe du tribunal de commerce”).