Introduction

If a person only works for your company and has no substitute income sources, no extrapolation is required to determine the rate-determining wage. It doesn't matter whether the person is a monthly or hourly wage earner.

If a person has multiple occupations or has substitute income sources, the rate-determining value must be extrapolated for the withholding tax. Additional occupation includes income from self-employment or employment in home country and/or abroad as well as substitute income sources (pensions/daily allowances).

The calculation in cantons with annual calculation is more complex, since all months of the calendar year are taken into account, and not only the current month. The explanations about the calculation for monthly or hourly wage earners do not provide more detail for this.

You can see the calculated values in Wage items under Fictitious salary types. On the Paycheck you will notice that the percentage value is higher than it would be the case for the reported IT wage. Income tax is only calculated for the IT wages you earn.

In special cases when a level of employment cannot be determined for any of the occupations, the median wage IT category may be applicable. You will find more details about this in the corresponding chapter.

We have adjusted the ‘Check list for persons subject to withholding tax’ (Word and PDF) for you to request information from your employees for data maintenance. You can find them on our website under FAQ Income tax. By changing the language in the top right corner of the page, you can also obtain this checklist in French, Italian and English.

NOTE
TimeMachine fields can only be used to a limited extent in the area of other income sources. We are working to ensure that they are soon available in a functional manner. It is currently available for monthly wage earners in the cantons with a monthly calculation method.