I have been called, cornered and accosted by teachers over the past several months asking me to compare the travailleur independent status and the auto-entrepreneur status.
While I am not an auto-entrepreneur (and cannot become one because I'm already a travailleur independent) I've listed a few pros and cons below following an email conversation I had with a teacher.
Being an auto-entrepreneur has its good and bad sides.
- The social charges can't be beat - you pay 22% in social charges and don't pay income tax on top of that. That beats being CDD, CDII and Travailleur Independent
- You can charge "pre-charges patronales" prices. For instance, as a CDII teacher, the going rate per hour is about 22 brut. However, as an auto-entrepeneur, you could bill the school as much as 35 an hour because they won't be paying any social charges on your salary. - Ask them about that.
- You have to bill the school and keep track of your bills (and be very very organized).
- You can't charge any business expenses (metro, lunch, etc).
- You get very little health coverage.
- You need to be able to understand the government website to become an auto-entrepreneur which is in French, sign up and report your income to the government.
- And most importantly: the auto-entrepreneur status was set up to allow for already self-sufficient professionals and students to have an income on the side. It was not designed for people to live off of as their prime income. So, if you do this, I strongly suggest you juggle other contracts that are CDD, CDII, CDI, or that you have a spouse who has a CDI.