All private employers residing in the North and in Paris, the most populous departments in France, are now eligible for the immediate payment of their tax credit for the employment of an employee at home. This system will be rolled out across the country at the start of 2022.
Individual employers will save money
Individual employers residing in the North and in Paris will be able to save on the wages they pay to their household employee (housekeeper, gardener, babysitter). With the “instant tax credit”, since June 2021, they are only forced to pay 50% of their employee’s real salary. The remainder will be paid directly by the state.
Individual employers are not going to pay less, but they will no longer have to advance the full amount. Because until now, Home service users could recover 50% of the sums committed to remunerate the employee from the tax authorities, but the process had to be taken and there was a one-year delay.
From January 2022, the instant tax credit can be applied throughout the territory
From now on, the employee or the contractors will receive half of the salary directly from the State. The beneficiaries of personalized autonomy allowances (APA) and the disability compensation benefit (PCH) cannot benefit from this “instant tax credit”.
From January 2022, the instant tax credit will benefit all individual employers, then in April for those who pay their employee through a personal services company (or agent). In France, more than 870,000 employees are concerned: 562,000 home helpers, 237,000 childminders and 68,000 childcare at home