How to work and freelance?

When a professional wants to start working as a freelancer, the question arises of the overlap between his paid work and his new independent status. Indeed, working as an employee and self-employment requires following several rules, as well as knowing whether it is possible to combine these two professional statuses. But how to be both an employee and a freelancer? How can you be sure that you can start working as a self-employed person while maintaining your employee status? If that’s not possible, how do you take advantage of employee benefits when starting your business? Explanations.

Benefit from salaried status while remaining independent

Employee and freelancer: how to know if a merger is possible?

Initially, your main professional activity is as an employee of the company that employs you. You should be aware that starting a freelance activity while you are also an employee requires checking whether this combination is permitted as indicated on the Cegelem website.

Depending on your employment contract and the sector you operate in (private or public), it may be difficult to start an activity in parallel with your salaried job.

However, these few rules apply mainly in the private sector:

  • When concluding an employment contract with the company, you should make sure that there are no clauses that prohibit you from working as a freelancer (also check the collective agreement). In the absence of this clause, you can start your own business.
  • Also, it is important to start a professional activity that does not compete with your company, unless there is no prohibition on this in your employment contract! This is a non-compete condition.
  • Finally, you must be covered by Self-Employed Social Security (SSI) as well as the general social security system.

By comparison, public officials are subject to very strict rules regarding private activity. They are dependent on working time, salary activities performed in the Civil Service, etc.

How do I declare my two incomes?

This is one of the most common annual steps: declaring your income. When you receive your tax form, your employer will usually have sent the current year’s income to the tax authorities.

But your dual activity also requires filling out a second tax return, this time dedicated to your freelance activity. This is declaration n°2042-C-PRO. You will then need to indicate your turnover (BIC or BNC) according to your type of activity.

How to manage your paid status and freelance status?

When you understand how salary porting works and have all the prerequisites to start freelancing while still doing your salaried business, organization becomes the key word.

It should be noted that you cannot work on your personal projects during working hours. So starting your own business means you get to work on it in your spare time! Your employer is under no obligation to agree to modulate your working hours (part-time, rearrangement of days, etc.) to allow you to carry out your independent project. If he does, good for you! If not, you’ll have to adapt.

Then, depending on the nature of your freelance work, you need to learn how to organize yourself. A daily to-do list and schedule would be welcome to meet your turnover goals and complete work assignments for your clients on time. You will have more visibility of the missions to be completed! In addition, due to your busy schedule, you will be able to better determine the time needed to complete the mission as a freelancer.

What are the benefits of having freelance status and employee status together?

Combining the two statuses proves to be an interesting solution for enthusiastic workers who are not afraid to spend a lot of time on the realization of their two professions. It’s true, being a freelancer and an employee will fill your life well! Your weekends and weekday evenings will generally be dedicated to developing your business without compromising your day job.

But this hard work is also useful. Indeed, then you have a second source of income! This is not insignificant, and it allows you to live a better quality of life.

In addition, combining the two statuses allows you to conveniently check your activity. You can take the time to develop it, test your skills in managing a professional project as a freelancer. However, be careful, this build has the disadvantage of not being able to duplicate projects! Your time is already greatly reduced by your paid activity. If you realize that freelancing isn’t for you or your business isn’t working out, you can simply quit and go back to your old routine.

Finally, pride is an important feeling when you launch your personal professional project. Often it is the realization of a dream, a long-held dream. In this way, a freelancer takes great pride in performing two activities at the same time. He gives himself the means to succeed, and is determined and motivated to achieve his goals regardless of the sacrifices involved.

The contract prohibits you from starting your activity: how to become a freelancer without losing the benefits of employment?

If your employer refuses to set up your business with an employment contract, there is a solution. Payroll companies allow freelancers to pursue their professional projects independently while enjoying the benefits of traditional employees.

So, after you leave your job, you can devote all your time to completing work assignments with client companies. In return, you receive a fixed premium, and at the same time you will have all the benefits of employees, namely:

  • unemployment insurance;
  • Health insurance;
  • pension insurance;
  • vacation, sick leave;
  • and so on.

So you are protected by a payroll company that handles all the administration and accounting for you! In return, he receives a management fee from your turnover.

This solution is ideal if you have a strong desire to start your business, but you want to test your business first. Protection with multiple insurances is also reassuring at first glance, because this new life is an endless discovery! The fear of the unknown is then limited by the guidance offered by the payroll company, which in no way interferes with your autonomy, personal work and client relationships. You stay in control of your business.

(Photo credit: iStock)

article written by

writer

This text is published under the responsibility of the author. Its contents in no way involve the editorial staff of Les Echos Solutions.

Leave a Reply

Your email address will not be published. Required fields are marked *