Is it possible to combine the status of auto-entrepreneur with unemployment?
The accumulation of the status of’Is it possible to be an auto-entrepreneur and be unemployed? ?
Unemployed people often fear losing their benefits by starting or taking over a business. Indeed, the initiative leads to a change in the status of the unemployment beneficiary. An entrepreneurial project exposes you to the risk of absence or cessation of activity.
Thus, the fear is understandable for job seekers and self-entrepreneurs in difficulty.
Is it possible to receive unemployment while being a self-employed entrepreneur? ?
The accumulation of unemployment and autoentrepreneur Yes, it is possible to receive unemployment benefits until you have exhausted your rights to the ARE (Aide au Retour à l’Emploi). The allowance will allow you, for example, to supplement your income or your financing during the start-up of your activity. You can take advantage of various practical tips on the Passion-Entrepreneur platform.
However, this accumulation is subject to certain conditions.
Once added up, your allowance and your income as a self-employed person must not exceed your last average salary. The reference amount is the value used to calculate your unemployment benefit. In other words, you can keep your right to unemployment benefit in case of low or no income.
Your situation will be reconsidered, if your new activity improves its turnover (CA).
You will continue to receive full unemployment if your microenterprise does not generate income. Your benefit will be partial if the activity is remunerative. In this case, you will have to subtract 70% of your professional income from the usual amount of your rights.
These earnings are calculated according to the nature of your activity. They represent :
- 71% of the turnover for commercial activities and similar;
- 50% of the turnover for furnished rentals and services;
- 34% of the turnover for BNC (non commercial profits).
If you rent a furnished apartment, for example, you must multiply your monthly turnover by 50% (professional income), then by 70. You will then have to deduct this result from the amount of the ARE that can be obtained if you are not working.
What steps must be taken to be in order ?
You must first declare your new activity to Pôle emploi to to benefit from the combination of unemployment and auto-entrepreneur. In addition, you are required to declare your monthly income to this organization. You may apply for a provisional waiver of this second condition by presenting valid reasons.
However, you will have to regularize your declaration the following month.
As an unemployed person, you must update your situation every month with Pôle Emploi. You will be asked to indicate, among other things, your hours worked and your income (salaried or non-salaried) over this period. This is used to calculate the amount of your ARE.
You must therefore update your income every month, even if you declare your income to URSSAF every quarter.
In practice, you are supposed to inform Pôle Emploi as soon as you create your microenterprise. It will also be necessary to transmit each declaration of CA to the local antenna of the entity. However, you must check the rules concerning the deduction before applying it to your income.
To speed up the procedure, you can also download the receipt from your account on the Pôle emploi website.
What are the penalties if you do not declare your activities ?
The cumulating unemployment and self-employment requires regular declarations to URSSAF and Pôle Emploi. As a reminder, you must update all information related to your professional situation every month. The declaration of turnover can, on the other hand, be made by month or quarter, depending on the option indicated to the URSSAF.
Attention ! You must systematically declare the turnover of your microenterprise, even if you have not received any income during the period in question. The failure to declare is indeed liable to a penalty (51.42 euros per failure in 2022). This penalty also applies to delays.
If you have zero revenue, you will need to enter “nil” in the monthly or quarterly revenue field.
A zero turnover automatically leads to a non-taxation of your self-employed activity, independently of the chosen tax system. L’no income The turnover declaration must however be declared to the competent bodies in order to benefit from this measure. If the turnover remains at zero for 24 consecutive months, you will be immediately struck off the RCS (register of commerce and companies).
You will also lose the advantages of the microenterprise status.
You will automatically switch to the TNS regime.