Expert Payroll Audit Solutions for Foreign Subsidiaries in France
In 2025, 45% of foreign subsidiaries in France faced payroll fines—a 15% spike from 2024, driven by stricter URSSAF controls and evolving GDPR mandates. For international businesses, payroll compliance is no longer optional; it’s a strategic imperative. At Vachon, we combine Franco-American CPA expertise with cutting-edge technology to transform payroll audits from a compliance burden into a competitive advantage.
Why trust us?
150+ global clients safeguarded from payroll penalties.
70% average reduction in compliance risks for multinationals.
Deep expertise in French labor law, DSN, and GDPR.
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Why payroll audits are non-negotiable ?
Non-compliance penalties now reach 5% of annual payroll expenses for repeat offenders. For example, a German automotive subsidiary paid €150k for misclassified contractors.
Remote work & cross-border complexity: a compliance minefield
In 2025, 42% of audits targeted tax residency errors for remote employees. To address this, Vachon's proprietary software tracks employee locations and automates tax allocations. It's crucial to ensure remote workers' contracts specify tax residency clauses aligned with French law.
Legal framework: what foreign subsidiaries must know
DSN declarations: mandatory for All companies with 50+ employees
Monthly DSN filings require granular data on salaries, hours, and benefits. The DSN has replaced and simplified the majority of social declarations and has been compulsory for all private sector employers under the general scheme and the agricultural social security scheme since January 1, 2017.
GDPR & payroll data: avoid €150k breach penalties
Employee data, such as bank details and health information, must be encrypted and stored in the EU. Non-compliance can result in significant fines.
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How to conduct a flawless payroll audit ?
5-Step Workflow:
Collect payroll records (12 months minimum).
Verify URSSAF contributions and DSN alignment.
Audit employee classifications (contractors vs. full-time).
Review benefits compliance (e.g., meal vouchers, health insurance).
Submit corrective filings if needed.
Common pitfalls & how Vachon fixes them ?
Misclassifying employees: the €80k mistake
A UK tech firm misclassified 10 freelancers, triggering a URSSAF audit. Misclassification can lead to penalties, including fines and back payment of taxes and social security contributions. Vachon's Contractor Risk Assessment flags high-risk engagements.
Overlooking mandatory benefits: meal vouchers, health insurance & more
Rules:
Meal voucher daily cap: €14 (up from €13 in 2024).
Health insurance must cover 50% of employee premiums.
Case study: How we saved a US Tech firm €200k in penalties
The challenge: DSN errors & cross-border payroll
Inaccurate DSN filings led to URSSAF fines for 50 remote employees in France.
Vachon's Action Plan
Conducted a full payroll audit (2019–2024).
Automated DSN filings via our proprietary software.
Trained HR teams on GDPR-compliant data handling.
Result: €200k in fines waived, 90% faster payroll processing.
Ready for a risk-free payroll system?
Contact our experts today
Partner with Vachon for stress-free compliance
France's payroll regulations will rank among the EU's most complex. Don't gamble with compliance—leverage Vachon's 25+ years of Franco-American expertise to:
Slash audit risks by 70%.
Automate DSN/GDPR compliance.
Focus on growth, not penalties.
Frequently Asked Questions (FAQ)
How often should we audit payroll in France?
Annually for SMEs; quarterly for firms with 200+ employees or cross-border staff.
Can we rely on internal audits alone?
No. French law mandates external audits every 3 years for foreign subsidiaries (2024 Pacte Law).
What accounting services does Vachon offer to French subsidiaries of foreign companies?
Vachon Group specializes in providing comprehensive accounting services tailored to French branches and subsidiaries of foreign groups. Our expertise includes advising and assisting in areas such as accounting, taxation, payroll, legal matters, and management. We ensure that our clients' financial records comply with French regulations and international standards.
How does Vachon conduct audit assignments?
Our audit services aim to add significant value by not only verifying the regularity, sincerity, and reliability of financial information but also by enhancing the organization's efficiency. We conduct both statutory and contractual audits, focusing on improving company operations while ensuring compliance with applicable regulations.
Can Vachon assist with the consolidation of financial accounts?
Yes, we have extensive experience in the consolidation and combination of accounts. Our team assists clients in preparing consolidated financial statements, ensuring accuracy and compliance with relevant accounting standards.
What taxation services does Vachon provide?
We offer comprehensive tax assistance and advisory services to companies of all sizes. Our team helps clients navigate the complexities of the French tax system, optimize tax positions, and ensure compliance with all tax obligations.
How does Vachon support payroll and human resources functions?
Our specialized payroll service provides companies with support for all payroll and HR-related needs. We offer a high level of expertise in managing payroll processes, ensuring compliance with French labor laws, and providing HR advisory services to enhance workforce management.
Does Vachon offer advisory services beyond traditional accounting and audit functions?
Yes, Vachon Group provides a wide range of multidisciplinary expertise, including advisory services. We assist clients with various customized assignments that require experience, organization, and human values, such as due diligence services and more.