There are numerous legal changes to withholding tax: On 15 December 2016, Parliament passed the Swiss Federal Act on the Revision of Withholding Tax on Earned Income. The Withholding Tax Ordinance was issued in April 2018. On 12 June 2019, the Swiss Federal Tax Administration (FTA) published Circular No. 45 on Withholding tax on employees’ earned income from employment. In addition, ELM Standard 5.0 was published by Swissdec at the end of March 2020. Additions are expected to be made to this by the end of March 2021.
As an employer with employees who are liable to pay withholding tax, you need to be familiar with the new legislative basis and duly adhere to it in your payroll accounting. That applies whether you work with payroll software updated for withholding tax or whether you carry out the calculations manually.
The Federal Act and the Ordinance contain various relevant changes. Here is an excerpt of them:
Make use of our knowledge advantage and our expertise, as this topic is our profession and we deal with its legal developments and consequences on a daily basis.
You can also simply outsource your payroll accounting to us in an integrated corporate environment. As withholding tax experts, we will work with you to ensure that everything runs smoothly from day one. As an additional option, you can use our Abacus cloud solution, which correctly reflects your circumstances. We would be pleased to help you in making these decisions and to train your users upon request.