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What status for a consultant or computer engineer?

Published on 07 March 18
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Over the years, IT consultancy missions and computer engineering jobs have reached a high level of maturity, and have even become nowadays mass trades. The digital revolution and the trivialization of new technologies has spurred a growing demand for engineers in information systems, management, telecom networks or industrial IT . If the computer engineer has a lot of freedom to choose his status, which one to choose before such an embarrassment?

How to collect your income as a computer consulting engineer?
There are 3 possibilities, to be an employee of an IT services company, to be 100% independent or to resort to wage porting, which allows additional flexibility

To be an employee of an IT services company
The consultant or the engineer may be an employee of an IT services company. In this hypothesis, the latter, although he may have some autonomy in the exercise of his profession, is placed in a relationship of subordination with society, which will provide him with a salary.

This solution offers the professional a relative security and he will thus be able to benefit from a regular remuneration as well as the advantages related to the wage-earning (reinforced social protection, possibility of contributing to unemployment insurance ....). However, he will not be able to develop his clientele and will soon be limited in terms of income. A consultant seeking independence will not always be well dependent on an employer.

Being independent: freelance or company manager
Many IT consultants also decide to opt for independent status.

Two options will then come to them:

the exercise of their profession as part of a sole proprietorship.
the creation of a company in which they will be partners or majority shareholders.
If this second option presents an additional cost and proves more complex to manage (we enter fact in the great bureaucracy: statutes, annual legal, a general assembly must fix the allocated remuneration and the dividends paid ...), it does not has many advantages:

it is possible to make an optimization between dividends and remuneration (the former are less taxed but the latter are deducted from the taxable result).
investors can enter the capital of the company.
the liability of the partners being limited, their patrimony is better protected, although it may be relative in some cases.
transmissions are facilitated (it is easier to sell shares of a company rather than a business).
However, starting as a company manager or individual entrepreneur is not risk free. Thus, it is necessary to have a clientele or a network already developed and can not benefit from unemployment insurance, which can place the entrepreneur in a precarious situation. In addition, unless an SAS is created (in this case, the president is subject to the general social security scheme), the pension rights are limited and a supplementary pension must therefore be created.

The use of salary porting is a third option for the computer consultant, which represents a good synthesis between employee and freelance status.

Payroll solutions are very popular with IT professionals, it engineersalary . It is recalled that the portage salary is an operation by which a company of portage puts at the disposal of a customer a worn employee, who will carry out a particular service.

Thus a tripartite relationship is set up:
- between the employee, holder of a labor contract, and the portage company
- between the porting company and the customer, linked by a commercial relationship.

Salary porting allows salaried employees to benefit from the advantages of wage earning (contribution to the general social security system, income security, etc.) and entrepreneurship (autonomy, the possibility of developing one's clientele and increasing one's outlets and his income ...).

In addition, the portage company will take care of its accounting and administrative tasks and will be able to take advantage of its network to find new customers. This is a way of getting out of the less productive tasks of his activity to dedicate himself to those that generate more value.

To receive the fees of his missions, 3 types of income are available to him:

- a salary,
- dividends,
- offshore income

If the payment of a salary makes it possible to benefit from a good social protection, the social charges and the income tax will be high and will come to burden the available amount.

Tax optimization opportunities
The dividends, meanwhile, make it possible not to contribute to the social security but are weakly imposed (on 60% of their amount due to the application of a reduction of 40%) and as seen above not subjected to the social charges.

Offshore income is paid into an offshore account located in a country benefiting from a very advantageous tax system, thanks to sometimes complex tax arrangements. Left to the choice of the port, these incomes may or may not be subject to French income tax and social security contributions.

The flexibility of the types of income
These 3 solutions are not exclusive and it is quite possible to opt for a "mix" according to its needs. Thus, an employee wishing to benefit from social protection will favor the payment of a salary while those who want to reduce their social and tax charges will opt for a solution that favors offshore revenues and dividends.
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Over the years, IT consultancy missions and computer engineering jobs have reached a high level of maturity, and have even become nowadays mass trades. The digital revolution and the trivialization of new technologies spurred a growing demand for engineers in information systems, management, telecom networks or industrial If the computer engineer has a lot of freedom to choose his status, which one to choose before such an embarrassment?

How to collect your income as a computer consulting engineer?

There are 3 possibilities, to be an employee of an IT services company, to be 100% independent or to resort to wage porting, which allows additional flexibility

To be an employee of an IT services company

The consultant or the engineer may be an employee of an IT services company. In this hypothesis, the latter, although he may have some autonomy in the exercise of his profession, is placed in a relationship of subordination with society, which will provide him with a salary.

This solution offers the professional a relative security and he will thus be able to benefit from a regular remuneration as well as the advantages related to the wage-earning (reinforced social protection, of contributing to unemployment insurance ....). However, he will not be able to develop his clientele and will soon be limited in terms of income. A consultant seeking independence will not always be well dependent on an employer.

Being independent: freelance or company manager

Many IT consultants also decide to opt for independent status.

Two options will then come to them:

the exercise of their profession as part of a sole proprietorship.

the creation of a company in which they will be partners or majority shareholders.

If this second option presents an additional cost and proves more complex to manage (we enter fact in the great bureaucracy: statutes, annual legal, a general assembly must fix the allocated remuneration and the dividends paid ...), it does not has many advantages:

it is possible to make an optimization between dividends and remuneration (the former are less taxed but the latter are deducted from the taxable result).

investors can enter the capital of the company.

the liability of the partners limited, their patrimony is better protected, although it may be relative in some cases.

transmissions are facilitated (it is easier to sell shares of a company rather than a business).

However, starting as a company manager or individual entrepreneur is not . Thus, it is necessary to have a clientele or a network already developed and can not benefit from unemployment insurance, which can place the entrepreneur in a precarious situation. In addition, unless is created (in this case, the president is subject to the general social security scheme), the pension rights are limited and a supplementary pension must be created.

The use of salary porting is a third option for the computer consultant, which represents a good synthesis between employee and freelance status.

Consultant, computer engineers average salary portage

Payroll solutions are very popular with IT professionals, it It is recalled that the portage salary is an operation by which a company of portage puts at the disposal of a customer a worn employee, who will carry out a particular service.

Thus a tripartite relationship is set up:

- between the employee, holder of a labor contract, and the portage company

- between the porting company and the customer, linked by a commercial relationship.

Salary porting allows salaried employees to benefit from the advantages of (contribution to the general social security system, income security, etc.) and entrepreneurship (autonomy, the possibility of developing one's clientele and increasing one's outlets and his income ...).

In addition, the portage company will take care of its accounting and administrative tasks and will be able to take advantage of its network to find new customers. This is a way of getting out of the less productive tasks of his activity to dedicate himself to those that generate more value.

To receive the fees of his missions, 3 types income are available to him:

- a salary,

- dividends,

- offshore income

If the payment of a salary makes it possible to benefit from a good social protection, the social charges and the income tax will be high and will come to burden the available amount.

Tax optimization opportunities

The dividends, meanwhile, make it possible not to contribute to the social security but are weakly imposed (on 60% of their amount due to the application of a reduction of 40%) and as seen above not to the social charges.

Offshore income is paid into an offshore account located in a country benefiting from a very advantageous tax system, thanks to sometimes complex tax arrangements. Left to the choice of the port, these incomes may or may not be subject to French income tax and social security contributions.

The flexibility of the types of income

These 3 solutions are not exclusive and it is quite possible to opt for a "mix" according to its needs. Thus, an employee wishing to benefit from social protection will favor the payment of a salary while those who want to reduce their social and tax charges will opt for a solution that favors offshore revenues and dividends.

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