Collection and preparation of additional payroll data
Companies will be required to collect and prepare specific payroll data for all affected employees in the future. This includes, in addition to the usual payroll details, information such as the number of remote workdays (for France), the employee’s tax identification number in the country of residence, social contributions, withholding tax amounts, and other identification data.
Electronic submission of payroll data to tax authorities
Employers are obliged to submit the required information annually in electronic form to the competent cantonal tax authority. Cantons may specify the timing and format of the submission. A working group comprising the federal government, cantons, and businesses has already developed specifications for electronic transmission to harmonise processes and minimise administrative effort.
Information obligation towards employees
Employers must transparently inform affected employees about the international data exchange. This includes:
- Indicating the applicable agreement,
- Categories of data being exchanged,
- The partner state to which the data is being sent,
- Permitted use of the data,
- Employees' rights regarding data protection and access. This information must be provided at the start of the employment relationship or by 28 February of the year in which the data is first exchanged, at the latest.
The transmitted payroll data is personal data under data protection law. Affected employees have the right to access the processed data and correct inaccuracies. Objections to the transmission are not possible as it is based on legal and international grounds. In case of specific disadvantages, an administrative protection procedure can be requested.
Retention obligation
All data and documents collected in relation to the automatic information exchange must be retained for at least ten years to facilitate corrections and audits.