Social security contributions are calculated on the basis of your gross annual income. The higher your income, the higher your social security contributions.
You pay your social security contributions
You deduct them. If you pay your own social security contributions, you deduct them from your taxable income (as, incidentally, does your PLCI premium).
For example. Your company pays you €45,000 in remuneration and you currently pay €1,900 in quarterly social security contributions, i.e. €7,600 a year. Your taxable income is therefore equal to €45,000 – €7,600 =€37,400.
Your SRL pays your social security contributions
First of all, can it? Yes, for your social security fund, it doesn’t matter who pays your social security contributions each quarter. You can pay them out of the remuneration you receive from your company, or your company can pay them directly.
You’re taxed, but you also deduct! The payment of your personal social security contributions by your company generates a taxable benefit for you, just as it does for your company car. You therefore have additional taxable income, but you can still deduct these contributions.
For example. Let’s take the same figures as above, i.e. a salary of €45,000 and €7,600 in social security contributions. Your taxable income is now €45,000 + €7,600 (taxable benefit for social security contributions) – €7,600 (deductible social security contributions) =€45,000.