The social and economic committee (comité social et économique, CSE) represents staff. Depending on headcount, it has budgets and must keep appropriate accounts.
Setting it up
The CSE must be set up when headcount reaches 11 employees for a continuous period set by law. Its powers are broader from 50 employees: that is also the threshold from which it has its own budgets.
Operating budget
Paid by the employer, it funds the CSE’s operation: training of elected members, expert reports, administrative costs.
Social and cultural activities budget
It funds benefits granted to employees: holiday vouchers, tickets, gifts, activities. Its amount depends on the agreement or practice in the company.
The CSE’s accounting obligations
They are proportionate to its resources: simplified accounts for the smallest, fuller accounts above that, and for the largest, consolidated accounts and a statutory auditor. The accounts are closed, approved and presented to employees.
The accountant’s role
- For the CSE: keeping or presenting the accounts, advice on managing the budgets.
- For the employer: calculating the budgets to pay, payroll treatment of benefits.
To preserve independence, we check that there is no conflict of interest before acting for a CSE and for the company it belongs to.
Common mistakes
- Miscalculating the payroll base used for the CSE budgets.
- Confusing the two budgets: the operating budget does not fund social and cultural activities.
- Overlooking the payroll treatment of benefits granted by the CSE, when they are not exempt.
- Missing election deadlines, when the threshold is reached or terms of office expire.
Getting off to a good start
A simple annual calendar (payment of budgets, meetings, closing and approval of accounts, activity report) and a tool to track expenditure are often enough to secure management.
Frequently asked questions
Are benefits granted by the CSE subject to social contributions?
Some benefits enjoy tolerances or exemptions under conditions. Others are subject to contributions and included in payroll.
Can the CSE transfer funds between its budgets?
Yes, within limits set by the texts and by decision of the committee.
Who closes the CSE’s accounts?
The designated elected members, then the committee approves them at a meeting. The activity and management report accompanies the accounts.
Can the CSE use a chartered accountant?
Yes, to keep or present its accounts, and in some cases for expert reports funded wholly or partly by the employer.
When must the CSE be renewed?
Members are in principle elected for four years, unless an agreement provides a different term within legal limits.