AbaWeb
Payroll administration
The diversity in social insurance is considerable. With us at your side, you keep track of all personnel matters and regulations.
The legal requirements regarding social insurance and payroll are constantly changing and are becoming increasingly strict, complex and confusing. Mistakes can have a retroactive financial impact on your company for years. We provide you with pragmatic support for the services you require.
What we offer:
- Notification of entries/leavings and mutations to the responsible offices
- Notification of cases of illness and accidents to the responsible offices
- Preparation of payroll statements for daily allowance payments
- Support in any special cases (e.g. continued payment of wages in the event of accident and illness)
- Support with the recording of working hours (documentation obligation)
- Preparation of monthly payroll statements
- Preparation of payroll declarations / statements (e.g. withholding tax)
- Temporary assignments on site for bridging or substitution purposes
- Verification of the correct application and implementation of collective labor agreements
- Support with labor law issues
- Outsourcing of payroll accounting and management salaries
- Comprehensive advice on social insurance issues with domestic and foreign personnel
- Advice on all social insurance matters
- Pension planning from an insurance and tax perspective
Your contacts for payroll accounting and social insurance
Martina Wüthrich
Procurator
Head of Team Alternate
Fiduciary Agent with a Federal Patent
Qualified Expert in Social Insurance with Federal diploma of higher vocational education and training
T +41 31 329 20 32
mwu@core-partner.ch
Frequently asked questions about payroll administration
Payroll accounting is the process by which the salaries of a company's employees are recorded, calculated and managed. This process includes the calculation of gross wages, deductions such as social security contributions, any withholding tax or professional contributions and bonuses, as well as the payment of net wages. Payroll accounting is of great importance to ensure that employees are paid correctly and on time and to fulfil legal obligations.
Payroll accounting includes the calculation of wages and benefits, the calculation and payment of social security contributions and any withholding taxes, the preparation of pay slips and compliance with legal regulations. If required, other tasks from personnel administration such as registering with social insurance companies for contributions or benefits or managing holidays and sick days can also be included.
The legal requirements in payroll accounting include Minimum wage: compliance with any minimum wage for employees. Withholding tax and social security contributions: The correct calculation and payment of withholding taxes and social security contributions. Working time regulations: Compliance with regulations on working hours, breaks and rest periods. Payroll accounting: The preparation of detailed payslips for each employee. Retention obligation: The obligation to retain payroll documents for a certain period. Reporting to insurance companies and withholding tax authorities: The reporting of employees to social insurance providers and tax authorities in accordance with legal requirements.
The gross salary is the total salary that an employee receives before deductions. The net salary, on the other hand, is the amount that is actually paid to the employee after deduction of social security contributions, any withholding tax and other deductions.
Overtime and bonuses must be calculated and remunerated in accordance with the applicable contracts or company agreements. Overtime may be treated differently. It depends on whether surcharges are provided or whether they are excluded by contract or regulations. Supplements are generally indicated for night work, weekend work or work on public holidays, for example. Payments for overtime or special working hours are subject to social insurance contributions and are therefore accounted for as such.
A salary statement is a document that is issued annually by employers. It shows the wages paid, statutory social security contributions and any withholding tax, lump-sum expenses and contributions to further training for an employee. This salary statement is required to prepare the tax return and determine the employee's tax burden.
A wage garnishment occurs when part of an employee's net salary is transferred directly from the employer to the debt enforcement office. The garnishable amount is based on the statutory garnishment exemption limits, which are intended to protect the employees’ minimum subsistence level. Payroll accounting is responsible for ensuring that the garnishment amounts are paid correctly.
There are numerous software solutions for payroll accounting that simplify the process. These solutions offer functions such as the automatic calculation of wages, the creation of payslips, the processing of taxes and social security contributions as well as reporting and analysis tools. CORE Partner AG recommends the Abacus software solution.
Formal errors in payroll accounting: illegible documents or missing or incorrect information can lead to employee dissatisfaction and legal consequences. Incorrect calculation of withholding tax: Outdated tax tables or inaccurate rate choices can cause financial problems for employees as well as legal difficulties for employers. Forgetting fringe benefits: Failure to account for bonuses or special payments can lead to employee dissatisfaction and affect labour relations. Failure to take new legal regulations into account: Changes in legal or regulatory provisions must be considered when calculating salaries. It is important to avoid these mistakes to maintain employee confidence and ensure the financial stability of the company.
Outdated tools and manual processes: Small businesses often use outdated software or rely on manual data entry. This can be time-consuming and tie up resources. Complexity of social security and withholding taxes: The various branches of social insurance and their individual regulations always require up-to-date knowledge. Accurate calculations are important for both employees and companies. Small companies need to be well informed to avoid mistakes. Integration of new software solutions: The introduction of new technologies can be challenging. It is important to prepare employees for the new systems and ensure a smooth transition. Global mobility requirements: When small businesses employ international staff, they must comply with specific regulations. This concerns, for example, the taxation of expatriates or the recognition of foreign qualifications, work permits and social security subordination. To meet these challenges, it is advisable to rely on digital payroll accounting, cloud-based software and accurate time recording.
