Switzerland Payroll Services

Swiss Payroll

Successful international expansion depends on making the right moves from day one. This is essential for foreign companies establishing a presence and operating payroll in Switzerland. The complexities of Switzerland taxation laws can be daunting – there are three classes for personal taxation and complex levels for corporate tax.

Do not worry – our payroll specialists at Bradford Jacobsremove the worry of complying with taxation, payroll, and employment laws to safeguard your expansion objectives with our Professional Employer Organization (PEO) and Employer of Record (EOR) platforms.

We provide complete answers to every question your company will encounter before you move into Switzerland’s economy. We navigate the administration of the Switzerland payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities.

You may encounter some challenges regarding payroll but allow us to take the reins and answer any of your questions and concerns with our trusty guide on payroll for Switzerland.

What Swiss Payroll Options are available for Companies?

Remote payroll: This option allows businesses to operate under a single payroll system, by adding employees in Switzerland to the parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.

Internal payroll: You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Switzerland. However, this does require hiring dedicated HR staff who understand Switzerland’s employment and compliance laws.

Switzerland payroll processing company: If you are considering outsourcing, then working with a Swiss payroll company will help in processing your payroll – but not when it comes to compliance.

Switzerland payroll outsourcing: However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Switzerland. We lift the administrative stress from your shoulders so you can focus on what you do best.

Swiss Payroll Services

Companies advancing their international operations into Switzerland open a wealth of opportunities for expansion throughout Europe and further afield.

Challenges come alongside the potential benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.

Foreign companies wanting to hire staff and operate their payroll in Switzerland must establish a legal entity. The typical choices lie between a private limited liability company (Société à Responsabilité Limitée, SARL), or a branch. Companies are regulated by the Swiss Company Act, which operates under the Swiss Code of Obligations.

Taking this step before running payroll in Switzerland requires an in-depth knowledge of company, employment, and taxation laws – and keeping up to date with the changes.

However, there is an alternative and simpler route. Bradford Jacobs’ will navigate around these potential pitfalls effectively and efficiently. We recruit the staff in-country and then put into action our comprehensive knowledge of tax and payroll regulations. As part of our service, Bradford Jacobs files returns, and remits associated payments for tax and social security contributions directly from our payroll system to the relevant authorities.

Outsourcing your payroll in Switzerland will streamline your operations by dealing with the following:

• Obtaining Power of Attorney to act as payroll provider
• Registering employees with the relevant canton
• Filing forms for remitting tax with the Federal Tax Administration
• Registering with the Federal Social Insurance Office (FSIO) and the federal social insurance system (AHV) and the pension fund (BVG)
• The AHV 13-digit number, which is widely used as a Personal Identification Number (PIN) by all federal registers (which was originally the OASI, Old Age and Survivors’ Insurance number)
• Dealing with differing tax rates as they apply federally (at a uniform 11.5%), by 26 cantons (where rates vary greatly up to 40% for the highest incomes), 2,250 municipalities and in some cases the church
• Assessing liability where all four classifications of taxation apply
• Withholding taxes due to the state, canton and municipalities at various rates and percentages each month
• Transferring withheld taxes to the authorities monthly or quarterly as required depending on different regulations between cantons
• Filing annual tax returns, generally by March 31 for most cantons, with the tax year running from January 1 until December 31

What is required to set up Swiss Payroll?

Companies intending to run payroll by establishing a legal entity or subsidiary in Switzerland, typically select a private limited liability company, Société á Responsabilité Limitée (SARL), for small and medium enterprises and regulated by the Swiss Companies Act. Various essential procedures and requirements must be fulfilled to incorporate an entity in Switzerland, which include:

• Register the company name in the relevant canton’s Commercial Register (Registre du Commerce) which is published in the Swiss Official Gazette of Commerce
• Deposit CHF 20,000 (€19,272, US$21,780) in a Swiss bank account
• Register at least one founder/shareholder, an individual or entity, with no upper limit
• At least one director with single signatory responsibility, or two directors or officers with joint signatory power, must be resident in Switzerland
• A local legal representative
• Local registered office
• Notarized Articles of Association of the subsidiary
• Registration with the Federal Tax Administration
• Relevant business licenses for area of operation

Once incorporated, other steps must be followed to employ staff and operate payroll. The main requirements include:

• Registering employees with the relevant canton
• Filing forms with the Federal Tax Administration for remitting employees’ tax payments
• Registering with the Federal Social Insurance Office (FSIO) and the federal social insurance system (AHV) and the pension fund (BVG)
• The AHV 13-digit number (originally the OASI, Old Age and Survivors’ Insurance number) is now widely used as a Personal Identification Number (PIN) by all federal registers
• Dealing with differing tax rates as they are applied federally at a uniform 11.5% and by 26 cantons at rates totaling up to 40% for the highest incomes. Also, nearly 3,000 municipalities may apply taxes and, in some cases, a church tax
• Assessing liability where all four classifications of taxation apply
• Assessing and withholding taxes due to the state, cantons and municipalities at various rates and percentages each month
• Transfer withheld taxes to the authorities monthly or quarterly as required depending on different regulations between cantons
• Filing annual tax returns, generally by March 31 for most cantons, with the tax year running from January 1 until December 31
• Providing contracts or agreements covering fundamental points of employment including whether it is indefinite or fixed term