In Switzerland, payroll management is a delicate and highly regulated task. Whether you are a start-up employer or running a larger business, you need to understand the legal and tax aspects of paying your employees. This article provides you with a comprehensive overview of the obligations and best practices for optimally managing payroll in Switzerland.
1️⃣ The basic elements of a salary in Switzerland:
The gross salary of an employee in Switzerland includes several elements:
Basic salary: This is the main remuneration agreed between the employer and the employee. It is generally monthly or hourly.
Compensation and bonuses: These may be linked to performance or other specific criteria. For example, an attendance bonus, a commission on turnover, etc.
Benefits in kind: For example, a company car, meals or accommodation provided by the employer. Please note that the treatment may have variable tax and social security specificities to anticipate.
2️⃣ Social charges and employer contributions:
In addition to the gross salary, the employer must pay social security contributions, which include:
AVS (Old-Age and Survivors' Insurance): Mandatory contribution for all employees and employers. Mainly covers old-age pensions.
AI (Disability Insurance) and APG (Loss of Earnings Allowances): These insurances cover respectively the risks of disability and periods of loss of income linked to situations such as maternity, civil service, etc.
Accident Insurance (LAA): Accident insurance is mandatory for all employees. It is divided into 2 categories mainly, the non-professional LAANP, paid by the employee. And the Professional LAAP, paid by the employer.
Occupational pension plan (LPP): Generally paid 50/50 between the employer and the employee and varies according to age and the contract taken out.
3️⃣ Management of monthly salaries and declaration of charges:
Salaries must be calculated each month and paid according to the terms of the employment contract. A trustee helps you to establish correct pay slips, which detail:
Gross salary;
Social contributions;
Tax deductions, where applicable;
The net salary to be paid.
Social security contributions must be declared to the compensation fund, the pension fund, insurers and tax authorities within the specified time limits, generally on a monthly and/or annual basis.
4️⃣ Salary reporting obligations:
In addition to social security contributions, salaries must be declared as part of the employee's income and wealth tax return, when they are not subject to withholding tax. Each employee receives a salary certificate at the end of the year for their personal tax return.
5️⃣ The role of a trustee in salary management:
Payroll management can quickly become complex, especially with the multitude of contributions and declarations to be made. A trustee allows you to:
Calculate salaries in full compliance;
Ensure timely payments and declarations of social security contributions;
Optimize the management of social benefits (insurance, pension plans, etc.);
Provide advice on human resources management and compensation.
Conclusion :
Payroll management is a crucial area for any employer in Switzerland. By complying with legal obligations and optimizing payroll management, you can avoid costly mistakes. The support of a fiduciary gives you the peace of mind you need to focus on developing your business, while ensuring that your employees are paid correctly and on time.
Comments