Our Tips for Setting Up an Employee Stock Ownership Plan (PEE)
As an employer, if you have implemented profit-sharing or incentive schemes in your company, you must also offer your employees a company savings plan (PEE). This will allow them to invest the amounts received through these schemes. Here is everything you need to know about the PEE (how it works, payment and matching procedures, rules to follow for employees...) along with some tips for its implementation.
Sponsored content by Brisbane Media. The editorial team did not participate in the creation of this article.
Employee Savings Plan: Definition and Benefits
A Company Savings Plan (PEE) is a savings scheme that allows employees to build up medium-term savings with the help of their employer. It also offers attractive tax and social conditions, as the amounts invested and placed are not subject to income tax. However, these funds are locked for a period of five years, except under certain conditions that allow early withdrawal: marriage or civil union, purchase or construction of a primary residence, birth of a child...
A company savings plan involves not only your employees but also yourself (if your company has fewer than 250 employees) and your spouse (if they are a partner or associate). It brings numerous advantages for your company:
- It enhances your appeal to potential employees;
- it motivates current employees by offering them a system that values their commitment;
- it retains them and allows them to feel involved in the company's success.
How can you fund an Employee Savings Plan (PEE)?
The employee can fund their PEE by contributing:
- Their profit-sharing, incentive, and value-sharing bonuses;
- Voluntary contributions on a one-time or recurring basis;
- The company's matching contribution when it has been established.
What are the steps to set up a company savings plan?
When a profit-sharing or incentive agreement has already been concluded
In this case, things are well advanced. Indeed, these value-sharing arrangements are generally combined with an Employee Savings Plan (PEE) so that employees can directly transfer their bonuses there. Thus, when they receive a performance bonus, they can either invest it in their savings plan and benefit from advantageous tax treatment, or they can choose to receive it directly.
When no agreement has been concluded
Setting up a PEE can be done in different ways:
- Through dialogue with employee representatives to propose a project and negotiate it with them;
- by having the project validated directly by the employees;
- by implementing the PEE unilaterally if there is no agreement.
Focus on Taxation and Unlocking an Employee Savings Plan
For employers, matching contributions are exempt from social security contributions, except CSG-CRDS and the social package. For employees, capital gains realized upon the closing of the PEE are not subject to income tax and are only subject to social levies (CSG-CRDS).
After five years, employees can withdraw their employee savings whenever they wish. However, there are several cases of early withdrawal:
- Marriage or civil partnership (PACS);
- The birth or adoption of a child;
- The purchase, construction, or expansion of the primary residence;
- Divorce with child custody;
- Disability;
- Death;
- Termination of employment contract;
- Creation or takeover of a company;
- Over-indebtedness.
Contenu conçu et proposé par Brisbane Media. La rédaction n'a pas participé à la réalisation de cet article.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
