Managing your freelance income

The way wage portage works remains very simple for freelancers.

In fact, through wage portage, freelancers enjoy the same social security benefits as employees. It is a compromise between self-employment and traditional employment.

The umbrella company consultant has the option to negotiate their income and the duration of the assignment with their client and retains ownership of their client list. They must then choose an umbrella company.

Thanks to this arrangement, the consultant receives high-quality support with the management of their administrative tasks. But that’s not all: the umbrella company provides an employment contract, generates a pay stub for the consultant, and handles billing for the consultant’s client.

Let’s explore together how to maximize your earnings through an umbrella company

Starting off on the right foot

Umbrella companies offer a variety of plans with varying management fees. You should choose the company that provides the best support for your specific needs.

Be wary of management fees that are too low compared to the competition.

On average, they range from 5% to 10%; if it's lower than that, be wary

The advantage of this status is that it allows you to plan ahead for periods when you won’t be working on assignments. Indeed, slow periods can be a pitfall for freelancers, as they often mean no income. The unexpected can strike at any time.

With an umbrella company, you can request that your pay be paid in installments, allowing you to receive it monthly even while you’re on vacation.

If you do not wish to continue under the wage portage arrangement, you may request a mutual termination agreement at any time, which will ensure that you are eligible for unemployment benefits.

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You can also use this status to maximize your income. Unlike the micro-entrepreneur status, which does not allow you to deduct your expenses, the wage portage arrangement lets you claim deductible expenses such as coworking space rent or transportation costs.

Depending on the umbrella company, you may have access to a Company Savings Plan. This is an excellent way to maximize your income, as the PEE is not subject to income tax.

This provides security for a consultant, as it gives them the opportunity to build up additional income

You can save wisely by making one deposit per year into your account, with the option to make a matching contribution to your work-related account. 

With AD’Missions, for example, you can also choose to invest in a PERCO plan. This investment allows you to receive a lifetime annuity or a lump-sum payment upon retirement. It is a long-term savings plan that can be accessed at any time in the event of death, disability, etc.

Choosing an umbrella company is a real opportunity in itself. You don’t have to handle your own accounting, and you even get help finding future clients and access to a network of consultants.