As soon as you decide to adopt the freelanceyou integrate a social security branch specially adapted to your status: social security of the self -employed (formerly called RSI, social regime of the self -employed).
This organization offers very basic social security coverage and does not necessarily take into account all the specific needs of non-employee workers.
To compensate for the weaknesses of the compulsory regime, the law of February 11, 1994 called “Madelin law”, endeavors to provide additional protections to freelancers, without weighing on their activities.
In order to encourage self -employed workers (TNS) to cover themselves in addition to their compulsory basic regime, the Madelin* law allows contributions paid for so -called Madelin contracts to be taxable deductible from taxable profit or tax on income, subject to respecting certain conditions.
Stellothe mutual health insurance for TNS eligible Madelin law
Coder.com has chosen Stello as a privileged partner to protect freelancers registered on its platform. Indeed, Stello offers an offer entirely adaptable to your needs and those of your family, for an excellent value for money:
- 1 month offered with the “Freeland_1mois” code
- MADELIN law eligible
- 0 remains dependent
- Third party
- A team available and listening to their members
- A contract that covers the health expenses of the whole family
What is Madelin law? Definition
The Madelin law allows, in compliance with certain conditions imposed, a tax deduction of contributions paid by the self-employed worker, so that he can build up an additional retirement or health guarantees.
All contributions paid within the framework of these guarantees can be deducted from the taxable income of the self-employed worker within the limit of a tax ceiling.
Who is affected by Madelin law?
The Madelin law is particularly aimed at non-employee workers (TNS). You can benefit from its advantages if you enter one of the following categories:
- TNS subject to income tax attached to the category of industrial and commercial profits (BIC)
- TNS subject to non -commercial profits tax (BNC)
- TNS subject to the tax treatment of remuneration referred to in article 62 of the general tax code
- TNS affiliated to the compulsory health and old age diet of TNS (non -agricultural), such as:
- Craftsmen, traders or industrialists
- Liberal professionals: doctors, medical auxiliaries, lawyers, architects, notaries, bailiffs …
- Non-employee managers and managers of joint stock companies
- Non-remunerated collaborating spouses of non-employee workers
Different Madelin contracts
There are different types of Madelin contracts, established to meet the different needs for the protection of freelance.
Mutual contract & Madelin law
As a freelance, you have the right to subscribe to a complementary mutual.
However, classic mutuals are often intended for students and employees and are not suitable for your case. The reimbursement rates and contributions are calculated on those of Social Security …
The Madelin mutual contract adapts to your situation of self-employed worker and offers reimbursements in line with the social security rates of the self-employed. Even certain “excluding nomenclatures” health expenses can be supported by this contract.
Retirement contract
The Madelin retirement contract helps freelancers to build up additional capital for its old days.
Complementary retirement is then returned in the form of a rent at the same time as mandatory pensions.
Provident contract
The provident contract enacted by the Madelin law is aimed at non-employee workers who wish to benefit from a maintenance of income in the event of a work stoppage or invalidity.
This contract also allows freelance to protect their family in the event of death.
Unemployment insurance
When you have to liquidate your business, revenue entry stops overnight. This situation is often difficult to live, especially since compulsory expenses continue (rent, electricity, credit, water, internet, etc.). The Madelin law offers unemployment insurance to TNS which help them maintain their remuneration, during a time defined time by the contract, in the event of liquidation or cessation of activity.
What are the advantages of the Madelin law for freelance?
The Madelin law aims to reduce inequalities in social protection between employees and entrepreneurs. They can take advantage of better reimbursements for usual medical care, but also be fully supported for heavier care.
In addition, they can build capital to leave with a more comfortable retirement than that offered by social security of the self -employed.
It must also be understood that an unwarned day is equal to a day not paid. Madelin contracts offer more generous daily allowances than those of social security of the self -employed, which help freelancers to maintain its standard of living, even if it must remain in bed for several weeks.
When can we subscribe to a Madelin law mutual contract?
In order to benefit from the taxation provided for by Madelin law, you must:
- Join an insurance or group mutual insurance contract, in the form of an association, with at least 1000 members exercising or having carried out a self -employed activity
- Be up to date with your contributions due for your compulsory health and old age diet of TNS (non -agricultural).
- Contributions must present a regular amount and be paid at least once a year.
By subscribing to the mutual Stelloyou enter the conditions to benefit from Madelin taxation.
What taxation for mutuals and the Madelin contract?
Depending on the nature of the contracts subscribed by freelance, the tax advantages from which it benefits vary.
The deductible amounts take into account the tax regime to which the freelance is subject (BIC or BNC).
The Madelin contract is deductible from taxable profit: retirement, provident or mutual contributions are therefore partly funded by the tax economy carried out.
Please note: you cannot deduct all Madelin contributions. They are capped in order to avoid abuse, up to 3.75 % of professional income + a 7 % package of the annual social security ceiling.
In 2021, for complementary health insurance, the ceiling was € 9,872.64, increased by 3.75 % of your declared professional income.
Contributions can be paid by yourself or your business.
Mutual and Madelin law: what to remember
As soon as you choose to abandon the wage earning to get started, it is advisable to take out Madelin contracts to protect you.
Your mutual fees will be deductible from taxable income from your business.
You do not have to immediately take the most important contracts, but the basic contract makes it possible to compensate for inequalities and to avoid some periods of stress.