Your company is based in the US and you have — or plan to have — one or more employees in France: a sales representative, a remote engineer, a small local team. Many US companies default to an Employer of Record (EOR) because it looks simple — but once a hire is stable, the EOR premium adds up fast. There is a compliant, more cost-effective alternative: employ your people directly and have a French payroll specialist run the payroll for you, in English.
You do not need a French subsidiary
Setting up a French entity is not required to employ someone in France. A US company can employ staff in France as a registered foreign employer without an establishment ("entreprise étrangère sans établissement en France"). You register with the French social security system and run French payroll — without the cost, delay and accounting burden of a subsidiary.
A French entity can still be the right move once your local team grows or you want a commercial presence. Both routes work; the choice depends on your plans. I can walk you through the trade-offs before you commit.
Direct payroll vs EOR: the cost difference
An EOR becomes the legal employer and charges a margin — often a fixed monthly fee or a percentage — on top of the French social contributions you would pay anyway. That premium makes sense for a quick, short-term test, but for a stable hire it is money spent every month for convenience you may no longer need.
With direct French payroll, you pay the French contributions plus a straightforward payroll management fee — no per-employee margin. Over a year, the saving on a single full-time hire is usually substantial. See the full comparison: French payroll vs EOR.
What French payroll actually involves
- Registration as a foreign employer with the relevant French bodies (URSSAF foreign-companies centre).
- Compliant employment contracts aligned with French labour law and the applicable collective agreement.
- Monthly payslips with correct gross-to-net calculation, employee and employer contributions.
- The DSN (Déclaration Sociale Nominative) — the mandatory monthly electronic filing to the French authorities.
- Year-round compliance: sick leave, paid holidays, end-of-contract settlements, rate changes.
Read more: DSN filing for foreign employers and do you need a French entity to hire in France?
What it costs
A US employer pays exactly the same French social contributions as a domestic one. Employer charges run from a few percent of gross near the minimum wage up to about 42% of gross for higher salaries, with a strong reduction on lower pay. As a rule of thumb, a €2,500 gross salary costs around €3,150 per month.
Estimate your own figures with my free calculators:
- Cost of an employee in France — total employer cost;
- Gross to net salary in France — the employee's take-home pay;
- Employer social contributions in France explained — the full breakdown.
Why US companies work with me
- A single, dedicated contact — not a call centre or a ticketing portal. You deal with me directly.
- Everything in English — clear communication across time zones, plain explanations, no French jargon dumped on you.
- A genuine French payroll specialist — 16+ years of French payroll, URSSAF and DSN expertise, so compliance is handled properly.
- No EOR premium — you employ your own people directly; I run the payroll, without the per-employee margin.
Employing in France from the US?
Tell me your situation — one employee or a small team — and I'll explain the simplest compliant route, how it compares to an EOR, and what it will cost. Free first call, in English, no commitment.
Book a free call