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.