Employment Data: What is the DSN?
February 21, 2019
Since 1 January 2017, all companies are required to use the DSN to report their employees’ social security contributions to the relevant organizations. It is a single, simplified and paperless processs that has many advantages for employers.
Businesses have a new acronym in their vocabulary. The DSN process for reporting to social security organizations has been gradually rolled out since 2015 and became mandatory for all private-sector employers on January 1, 2017. In practical terms, the DSN is a file that contains all data (wages, bonuses, social security contributions, etc.) found on an employee’s pay slip.
Every month, the company’s payroll manager or accountant sends the DSN via the net-entreprise.fr website – except for agricultural employers, who send it to the Mutualité Sociale Agricole (MSA) website. If the DSN is not sent or is incomplete, employers may be fined.
Less paperwork, fewer disputes
Once the data has been reported, it is automatically sent to various social security organizations in charge of healthcare, old age insurance, retirement and unemployment benefits, and so on, and the tax authorities. A company can choose to have the DSN sent to additional organizations, such as insurers managing its employees’ supplemental benefits (death and disability, healthcare, retirement, etc.).
Generally speaking, the DSN makes reporting significantly easier for companies because one electronic procedure replaces some thirty separate reporting requirements, such as an annual table reporting all compensation and contributions paid during the calendar year to Urssaf agencies, which collect social security contributions. Since the transmission of data is certified after being examined, there is a lesser risk of dispute with the social security organizations or the company’s employees.
Reduced back-and-forth and faster responses from insurers
In addition to compensation, the DSN includes data about other events affecting employees, such as illness, maternity, and work accidents. Every month, it reports on absences for health reasons, early return from medical leave, and employment terminations (resignation, dismissal, termination by mutual agreement, retirement, and so on). Because the DSN is also sent to the supplemental insurance provider, the latter knows almost immediately when to start and end the payment of the daily allowances to employees on sick leave.
Likewise, if an employee leaves the company, the DSN enables these social security organizations and insurance providers to validate requests to maintain healthcare coverage and other employee benefits or to anticipate the payment of an annuity or lump sum retirement benefit.
With the DSN, insurers can pay death benefits to the beneficiaries of a deceased employee more quickly.
DSN insurance means easier lives and better service!