It is possible to benefit from unemployment benefits while pursuing the objective of creating a SASU( Société par actions simplifiée unipersonnelle). Even after setting up your SASU, you will continue to receive unemployment benefit until your entitlement has been exhausted. The condition is that you do not pay yourself any remuneration.
To support your project to set up a SASU, you can apply to France Travail for ARCE(Aide à la reprise et à la création d'entreprise). This is a grant to help you with your project if you wish to earn a living from your new business right away. SASU and unemployment are therefore reconcilable with a view to setting up a business if you are a jobseeker registered with France Travail.
If you are an employee who has lost his or her job, you must meet certain conditions in order to receive ARE unemployment benefit:
- Be registered as a job seeker with France Travail.
- Involuntary loss of employment.
- Able to work.
- Looking for a job.
- Not have reached legal retirement age.
- Reside in mainland France or an overseas territory.
- The unemployed employee must have worked for at least two months, i.e. 130 days (910 hours) in the last 24 months. This latter period is extended to 36 months for people over 52. Within this framework, it is possible to combine the "allocation d'aide au retour à l'emploi" with the creation of a SASU.
Pay yourself a salary
If you are registered with France Travail and receive unemployment benefit, you must declare all the income you receive to the authorities. This declaration of income is made when you update your situation each month. Two factors will influence the payment of your unemployment benefit:
- compensation conditions linked to your personal situation
- the amount of remuneration received from your SASU
Depending on these two points, the payment of benefits may be reduced or even interrupted. Your remuneration includes unemployment and social security contributions. If you are not remunerated for your duties as Chairman of a SASU, you may be able to keep your full ARE ( Aide au Retour à l'Emploi ) benefit.
Dividend payments
As Chairman of a SASU, the payment of dividends has no impact on the amount of your unemployment benefit. You are simply required to declare to France Travail any income that is subject to social security contributions. Dividends, on the other hand, are considered as income from movable capital. However, if your dividends are too high, even though you are receiving ARE, the tax authorities may take notice. They may decide to penalize you.
Choosing the ARCE payment is an excellent strategy for starting up a business as president of a SASU, if you want to earn a salary from the outset. Your unemployment benefits are automatically suspended.
The ARCE payment entitles you to at least half of the remaining balance of your unemployment benefit. Payment is made in two stages:
- The first half is paid when the SASU is created.
- The second half is paid six months later if the SASU is still in business.
The ARCE payment is independent of the amount of remuneration paid by the SASU for your position as Chairman. ARCE is a real boost for launching your business. It can be used to finance your share capital, for example.
The Chairman of a SASU is not entitled to unemployment benefits, as he does not contribute to the general unemployment insurance scheme to cover the risk of job loss. There are two exceptions:
- in the event of recovery of the SASU
- in the event of liquidation of the SASU
As of November 1, 2019, a SASU chairman can benefit from unemployment benefit in both cases. However, certain conditions must be met:
- To have been replaced in his position during a receivership.
- Income of at least €10,000 over the last two years.
- Have personal resources below the amount of the RSA.
- Looking for work
Compensation is limited to six months, at a cost of around 800 euros per month. Subscribing to a complementary unemployment insurance scheme for company directors enables the SASU chairman to benefit from additional income in the event of job loss. Complementary social protection solutions are available to supplement the SASU executive's compensation in the event of job loss.
Continuing to receive your unemployment benefit is possible when setting up a new business, in the case of a SASU. ARCE is a real advantage for starting up your own business if you give up your entitlement to unemployment benefit.
Written by our expert Editorial staff
July 11, 2024
