URSSAF audits and disputes

In France, the number of inspections has significantly increased in recent years, leading to substantial reassessments. In 2022, URSSAF conducted 38,906 general payroll audits and 37,461 targeted actions against undeclared work, resulting in the recovery of nearly €1.3 billion. The main grounds for reassessment include benefits in kind (company cars, housing, IT equipment), which are often undervalued or not reported, as well as professional expenses, which may be poorly documented or exceed authorised thresholds.

Unreported overtime and bonuses or incentives not subject to social contributions also rank among the most common triggers.
Due to its complexity, the general reduction in social contributions (formerly known as the “Fillon reduction”) remains a recurring source of error. Finally, accounting records are closely scrutinised, particularly expense claims, corporate seminars, and employee gifts, which may be subject to contributions.

Yes, it is possible to challenge an URSSAF reassessment, but the procedure is strictly regulated. It begins with exchanges with the inspector in charge, followed by the issuance of a letter of observations, which outlines the grounds for the proposed reassessments. At this stage, you have 30 days (extendable upon request) to provide your justifications, request further information, or present a counter-analysis. The inspector must respond to your observations before a formal notice to pay can be issued.

Only upon receipt of the formal notice can the reassessment be formally contested. You must then submit a claim to the amicable appeals committee within two months. This step is mandatory and crucial: any argument not raised before this committee cannot be invoked later in court. If the committee remains silent, this is considered an implicit rejection, allowing you to bring the case before the Social Division of the Judicial Court. Explicit decisions issued by the committee may also be challenged in court.

Lastly, an URSSAF mediation mechanism is available, but it excludes reassessments and cannot be initiated if legal proceedings are already underway. Although limited, it may prove useful in resolving administrative or relationship-based issues with the agency.

Key takeaway: challenging an URSSAF reassessment requires careful preparation and strict compliance with procedural deadlines to safeguard your rights.

The audit begins on the date of the inspector’s first visit (on-site audit) or upon the start of document review (desk audit) and concludes with the letter of observation. The length varies depending on company size and complexity and may range from a few weeks to several months.

For companies with fewer than 20 employees, as well as self-employed professionals or non-salaried agricultural workers, audits are limited to three months (renewable once). Note: This limit does not apply in cases of suspected undeclared work. 

Before initiating the audit, URSSAF sends a formal notice specifying the date of the visit and a list of required documents. The audit typically covers the previous three calendar years.

Required documents may include:

• Social documents: payslips, employment contracts, social declarations
• Accounting documents: balance sheets, ledgers, accounting records
• Tax documents: tax returns, assessments
• Legal documents: bylaws, settlements, court rulings
• Miscellaneous: invoices, expense reports, vehicle registrations
  This list is non-exhaustive. The inspector may request any documentation relevant to the company’s organisation and information systems.

The letter of observations is the official document in which URSSAF outlines the irregularities identified and the grounds for a potential reassessment. It must be issued at the end of the inspection, is dated and signed, and follows a strict formal structure.

This document must be substantiated and must state the proposed reassessment items, the assessment bases, the calculation methods, as well as any applicable surcharges or penalties linked to the reassessment. The letter may also include forward-looking observations, encouraging the company to modify certain practices without immediate reassessment.

Receipt of this letter formally closes the inspection phase and opens a contradictory procedure, during which you may respond to the inspector’s findings.

Receipt of the letter of observations officially closes the inspection and opens a contradictory period. You have 30 days to submit comments, provide new supporting documents, or express your disagreement. This period may be extended by an additional 30 days upon request (except in cases involving findings of undeclared work).

It is essential to respond with well-reasoned arguments, ideally with the support of a lawyer, in order to best protect your interests.

Yes. Self-employed professionals may be audited to verify accurate income declarations and compliance with activity thresholds. All businesses regardless of employee count may be audited, even if they are not registered as employers with URSSAF. 

Maintain up-to-date, organised records: payslips, contracts, and declarations. Conduct regular internal audits to identify and resolve issues proactively. Ensure your declarations reflect actual practices and comply with legal deadlines.

Staying informed of legal developments and seeking advice from a chartered accountant or employment lawyer is strongly recommended. Proactive preparation is your best defence. 

Companies must pay reassessed contributions along with late payment surcharges (initial and additional) and possibly financial penalties. In cases of proven fraud, criminal sanctions may apply.
If the company failed to comply with recommendations from a prior audit, a 10% surcharge may apply on that reassessment basis.

Engaging a lawyer specialised in URSSAF litigation offers numerous advantages. They ensure procedural compliance and protect your interests in response to the inspector’s requests. In the event of a dispute, your lawyer provides strong legal arguments before the competent courts.

A lawyer can also identify irregularities in the inspection process and anticipate the risks of an unwarranted reassessment. His expertise provides invaluable peace of mind and a strategic perspective for engaging with the administration. An inspection can become an opportunity to secure your practices, correct vulnerabilities, and implement robust internal procedures. With the support of a lawyer, turn this constraint into a lever for long-term stability and peace of mind for your business.