Recruitment agencies based out of Switzerland or have their presence in other countries come under the purview of the Swiss tax legislation at Cantonal and Federal levels and Swiss employment Law. The multitudinous roles and functions handled by the recruitment agencies is what that makes their payrolls complicated. Besides, recruitment agencies have to hire temporary staff in addition to their existing work force.
Typically, the payroll functions for recruitment agencies include-managing the data base of employees and calculation of salaries, preparing pay slips after considering due deductions and costs. Recruitment agencies have to consider the following factors for effective payroll management:
Recruitment agencies have to consider either (i) daily rate by the number of days worked, or (ii) an hourly rate by number of hours worked, in calculating the “gross monthly salary”. Deductions towards Social security are made from this amount which qualifies as the basis salary. In arriving at the net salary, employer contribution and employee costs are deducted from the basis salary.
|AHV||Social security contribution paid at a rate of 5.15%|
|Solidarity Fund||Solidarity Fund contributions at a rate of 0.5% of income over 10,500 CHF per month|
|ALV||Unemployment insurance at a rate of 1.1% with upper limit of 10,500 CHF per month|
|Accident Insurance||contribution of 0.652% “professional insurance” on income up to 10,500 CHF per month|
|Social Security||Social Security administration is 2% of social security contribution|
|BVG||Pension contributions both savings and risk as applicable|
|Recruitment agencies have to withhold the following taxes and insurances of their employees after deducting the employer contributions. The final amount after these calculations is the net salary of employees.|
|Social security contribution (AHV)-||This comprises of a three-pillar system including old age and survivors/disability insurance, occupational pension plan and private investment options. Swiss employee contribution made at a rate of 5.15%.|
|Unemployment insurance||at a rate of 1.1%|
|Accident insurance||at a rate of 0.652%|
Accutor AG is a Management Company offering payroll solutions to recruitment agencies. We provide 360° solutions for payroll, taxation, and management services, besides providing a wide spectrum of legal, HR and consular solutions to independent contractor, recruitment agencies and corporations. Our motive is to provide tax efficient solutions and thereby increase your net take home salary.
Quality of Life Index*