The CESU agreement, or the Chèque Emploi Service Universel, is a popular French legal framework that allows employers to easily hire workers for household or personal services. The agreement was first introduced in 2006 with the objective of simplifying the administrative procedures and reducing the costs associated with hiring domestic help.
Under the CESU agreement, employers are permitted to hire someone to perform tasks such as cleaning, cooking, gardening, and childcare. The agreement covers a wide range of services and provides a simple way for employers to pay their employees. In addition, the agreement ensures that the employee is properly registered and covered by social security.
The CESU agreement is available to all types of employers, including individuals, self-employed individuals, and companies. To use the agreement, employers must register with the CESU and then issue a CESU payment voucher to their employees. The voucher serves as a proof of payment and makes it easier for employees to receive social security benefits.
One of the key benefits of the CESU agreement is that it provides a tax credit to employers for the amount paid to their employees. This credit can be used to offset other taxes owed by the employer. Additionally, the agreement provides a simple way for employers to calculate and pay social security contributions for their employees.
The CESU agreement has been widely adopted in France and has helped to create a more efficient and cost-effective way for households and individuals to hire domestic help. It has also helped to formalize and legalize the informal economy by providing workers with social security coverage and legal protections.
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