Payroll management in Switzerland: our advice

Payroll management in Switzerland: our advice

<strong>Payroll management in Switzerland:</strong> our advice

How to create a payslip in Switzerland? What are the legal elements to include? How to proceed ? Is it necessary or advisable to get help from a service provider? We will guide you.

Preparing a payslip, what you need to know

Payroll legislation in Switzerland is complicated, and errors can have serious consequences for employers. Contrary to popular belief, it is not mandatory to issue a monthly payslip (even if it is the usual practice), it could be issued only in the event of a change in the calculation. The payslip can mention the following elements:

1.    Employee information: name, address, AVS number (old-age and survivors’ insurance), employee number, etc.

2.    Employer information: name and contact details

3.    Gross salary: this is the total amount the employee earned during the pay period in question, before any deductions.

4.    Deductions:

•     Social security contributions: old-age and survivors' insurance (AVS), invalidity insurance (AI), loss of earnings compensation scheme (APG), unemployment insurance (AC), occupational pension plan (LPP);

•     Withholding tax, for employees who are subject to it (e.g. cross-border workers or foreign workers residing in Switzerland depending on the type of permit);

•     Contributions for loss of earnings insurance in the event of sickness or accident.

5.    Net salary: this is the amount that the employee will actually receive in their bank account, after all deductions.

6.    Holidays: if applicable, holidays taken by the employee during the pay period.

7.    Bonuses and incentives: the amount of bonuses or incentives that has been paid to the employee during the pay period.

8.    Allowances: the amount of allowances paid to the employee during the pay period in question, such as meal or travel allowances.

9.    Overtime: the number of hours of overtime worked by the employee during the pay period, as well as the amount of compensation for this overtime.

Points 7, 8 and 9 are taken into consideration for the calculation of the gross salary.

This list is not exhaustive. It is important to note that the exact contents of a payslip may vary depending on the advantages and benefits in kind allocated by the company.

Payroll management in Switzerland, a complex and time-consuming job

There are several payroll-related tasks that need to be carried out every month. Therefore, in addition to the payroll, it will also be necessary to manage:

-    Absences: entry and management of absences, link with the insurer, link with the payroll and LPP

-    Administrative tasks: legal procedures (AVS, APG, AC, AI, work permit, etc.), tax declarations

-    Pension planning: changes in situation (marriage, divorce, retirement), entries and exits as well as transfers, etc.

As a generalist broker, we have developed a 360° offer that covers all your needs.

Outsourcing the administrative management of human resources, the choice of reason

Outsourcing the human resources administrative management offers many advantages to companies.

-     Specialised expertise: by calling on a service provider specialised in this field, the company has the assurance of complying with the regulations and therefore reduces the risks of non-compliance, which can be costly in the event of an inspection. At Qualibroker-Swiss Risk & Care, we guarantee compliance with Swissdec standards. We are also ISAE 3402 Type 2 recognised, which proves the reliability of Qualibroker-Swiss Risk & Care's internal control system.

-    Cost reduction: by outsourcing this function, the company does not need to hire additional staff to handle human resources administrative tasks, which can reduce costs related to salaries, benefits and training.

-    Improving efficiency: the company's HR department can focus on its core activities, starting with the management of men and women, and therefore be more efficient. An advantage that concerns both large and small companies for which HR issues are equally crucial, especially in our constantly changing professional world (talent retention, attractiveness, new form of work, etc.).

-    Access to technology: the company can also access advanced technologies that can help improve efficiency and productivity. At Qualibroker-Swiss Risk & Care, we provide our clients with IT systems and tools to manage employee data, which can help the company streamline processes and reduce errors.

-    Flexibility: if a company needs more resources to handle HR administrative tasks during a peak period, it can easily increase or decrease resources according to its needs by outsourcing this function.

To find out more, contact our Caredesk Payroll and HR Services:
info@swissriskcare.ch

Source: Art. 323b para. 1 of the Swiss Code of Obligations (CO)

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