Payroll accounting Zurich

Employing staff is a complex social and administrative challenge for a company’s HR function. Taking a holistic view of laws, insurance, contracts and pay models demands a high level of expertise and takes a lot of time.

Even for an SME with employees, outsourcing the entire payroll and personnel administration can benefit your company.

Our services cover the following areas:

Payroll administration and personnel administration

• Preparing and sending monthly payslips and annual salary certificates
• Executing payments via e-banking
• Managing employee entries and exits
• Working time records, vacation management
• Preparing HR statistics
• Tax at source statements, obtaining permits

Social insurance

• Settlements with social insurance institutions
• Advice on all aspects of social insurance
• Registering and deregistering employees with personnel insurance

General HR services

• Keeping personnel files
• Drafting expense regulations and staff regulations
• Drafting and advice on employment contracts and terminations
• Advice on HR matters
• Writing employment references
• Correctly handling continued salary payments (illness, accident, maternity, etc.)

An employment contract is an agreement between two parties. It sets out rules for the employment relationship and the rights and obligations of both parties. It is drawn up so that employees and employers are equally protected.

The Swiss legal system defines various types of employment contracts.

These include, among others:

• Individual employment contract (EAV)
• Collective employment contract (GAV)
• Standard employment contract (NAV)

Within individual employment contracts, there are also contracts for special employment relationships. These include the apprenticeship contract, the commercial traveler contract and the homeworker contract.

The statutory provisions on employment contracts are set out in the Swiss Code of Obligations (OR), from Art. 319 OR onward.

Both employees and employers have the right to end the employment relationship.

With a fixed-term contract, the employment relationship normally ends without notice.

With an open-ended contract, notice must be given. The employment contract normally specifies whether notice must be given in writing. If it does not, verbal notice is sufficient.

Notice only takes effect once the other party has received it. In Switzerland, you are not required to give a reason for termination unless the other party asks for one.

For notice to be valid, the notice period stated in the employment contract must be observed. If the contract does not specify a period, the standard Swiss notice periods under the Code of Obligations apply.

If an employee is on sick leave, has had an accident, is doing military or civilian service, or is pregnant, temporary protection against dismissal applies to them.

From the age of 18 until the end of gainful employment, contributions are paid to social insurance.

Contributions to AHV, IV and EO total 10.6% of the relevant salary and are split equally between employer and employee (5.3% each). Unemployment insurance (ALV) costs 2.2%, also split equally, and is levied on annual salaries up to CHF 148,200 per employment relationship; since 2023, no ALV contributions have been due on salary portions above this amount.

In addition, there is occupational accident insurance (BUV), which the employer pays, and non-occupational accident insurance (NBUV), which the employee pays, although the employer can also cover it.

Companies can also take out daily sickness benefit insurance (KTG) for their staff. This insurance pays the salary of someone who cannot work due to illness. It is important to understand that daily sickness benefit insurance (KTG) is voluntary and, contrary to what is often assumed, not mandatory.

For occupational pension provision (BVG), employees must be registered if their annual salary exceeds the entry threshold (minimum salary).

Under Art. 329a OR, employees are entitled to at least 5 weeks of vacation per year up to the age of 20, and to at least 4 weeks thereafter.

Tax at source applies to foreign employees resident in Switzerland who do not hold a settlement permit C, and to persons resident abroad who earn employment income in Switzerland. This does not apply to persons whose spouse holds Swiss citizenship or a C permit.

The employer deducts the amount directly from the salary and transfers it to the tax office.

There is no statutory calendar deadline for the salary certificate. It is issued annually and must reach employees early enough for them to enclose it with their tax return (Art. 125 para. 1 let. a DBG); in the canton of Zurich, this means before 31 March. The AHV salary declaration, by contrast, is subject to a deadline: it must be settled within 30 days after the end of the calendar year (Art. 36 para. 2 and 3 AHVV) and must reach the compensation office by 30 January at the latest. ONE! Treuhand monitors these deadlines for all the mandates it looks after.