TESE vs CESU, which one to choose to facilitate your recruitment?

What if we told you it was possible for someone to do your administrative tasks for you? Better still, they could be done by a competent body, free of charge? No, we're not talking about a dream, we're talking about the Titre Emploi Service Entreprise (TESE), which allows you to facilitate your recruitment procedure, the management of your employees and the different types of contract! 🤩

Appvizer explains everything from A to Z, from how the TESE works to the difference with its neighbor, the Chèque Emploi Service Universel (CESU).

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What is the TESE?

Definition

The Titre Emploi Service Entreprise (TESE) enables employers to hire an employee, while considerably reducing administrative formalities. After a totally free application, the national TESE processing center takes care of some or all of your paperwork, depending on the number of employees and your geographical area.

Here's what the TESE application form looks like:

Who is eligible?

Since the Social Security Financing Act for 2019, all companies attached to the general scheme are eligible, although there are some particularities depending on the following criteria:

• company size,
• geographical area,
• number of employees.

💡Companies in mainland France with fewer than 20 employees (whether on open-ended contracts, fixed-term contracts or apprenticeships) are eligible for the scheme for the entire year.all their employees, as long as they are not linked to special schemes or the agricultural sector. For the agricultural sector, another scheme takes care of everything: Titre Emploi Simplifié Agricole (TESA).

If your company has a larger workforce, don't worry: the TESE also helps you with occasional employeeson permanent or fixed-term contracts who work a maximum of 700 hours or 100 consecutive or non-consecutive days a year. 👍

In short, the following are not eligible for the TESE:

• companies in French overseas departments and territories,
• companies under the agricultural or special schemes (EDF, GDF, mines, etc.),
• large companies (between 250 and 2,000 employees or more),
• employer groups,
• works councils.

⚠️ Please note: employees whose contributions are calculated at reduced rates, such as entertainment workers, journalists, artists, etc., are not covered by the TESE.

How does the TESE benefit you?

As well as being free, it's also very easy to set up. All you have to do is register on the URSSAF website via a registration form, enter a few details about how to use it, and you're ready to go!

For those of you who are a little fussy, here are the administrative procedures that the TESE covers in detail:

• pre-employment declaration (DPAE);
• certificate of employment ;
• employment contract;
• calculation and declaration of remuneration and social security contributions;
• nominative social declarations (DSN);
• declarations to Pôle emploi and the paid leave fund;
• pay slips;
• tax certificates for employees.

All that's left for you to do is :

• payment of health plan contributions,
• optional social security contributions,
• financing professional training,
• apprenticeship tax, if you have to pay it,
• registering with compulsory supplementary pension and provident funds, or vacation pay funds.

So you're sure to save time and hire without added pressure! 😉

What's the difference between TESE and CESU?

The Titre Emploi Service Entreprise (TESE) is often confused with its close friend, the Chèque Emploi Service Universel (CESU). Let's take a closer look!

First of all, the CESU is not for companies, but for private individuals whose aim is to hire a professional in the field of personal services such as home maintenance, home help, tutoring, etc. This is both a declarative CESU and a prefinanced CESU, in other words, a means of payment.

Companies can purchase pre-funded CESUs from an ANSP-approved issuer, and either issue them free of charge or sell them to their employees for less than their face value. The aid is then deducted from the company's income.

💡 Practical tip: in the context of professional activities, it is advisable to opt for the TESE given that in the event of an inspection, the CESU deduction may be refused.

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To sum up

The TESE is very practical for employers who want to save time and make recruitment easier. By taking care of administrative formalities, subject to certain conditions, you can enjoy peace of mind by handing over your paperwork to professionals. A dedicated digital space provides all the information you need.

The CESU is different in the way it is used. Only private individuals can benefit from it. Companies are advised to use the much more practical TESE. However, because it's free, the system takes care of many administrative elements, but is not totally comprehensive. The TESE does not manage all the associated social security charges or earned vacation pay, nor does it provide advice in the event of a dispute with the employee. The TESE is therefore particularly effective for small businesses that employ staff on a regular basis for short periods.