Why payroll runs with the Provisional Payment

What is the on-account procedure and why do we recommend always processing wages on account when using SwissSalary EasyRapport (or another time recording tool with an interface to SwissSalary)?

In the Provisional Payment procedure, employees receive a calculated value as an Provisional Payment, which normally corresponds to the net amount of their monthly wage. At the end of the month, when all times and expenses have been recorded, the final payroll is calculated. The payments on account are based on the monthly salaries (monthly wage) stored in the personnel files and the items reported to date in the payroll journal (hourly wage). Reports that have already been recorded, such as bonuses, daily allowances, or wage reductions, are taken into account. The final payroll run takes into account all recorded working hours and newly added reports. Normally, the final payroll run only results in payments if, for example, submitted expenses are reimbursed. The working hours and services are posted for the month in question. This could also be referred to as a time payroll run. By preparing the payroll at the beginning of the following month, employees can always be shown their actual time balances for the month.

What sounds like a lot of extra work actually makes the daily routine of payroll managers much easier. Here are a few points in favor of the Provisional Payment procedure:

•The payroll run on account is very easy to perform

•Simple entry and exit procedure, as all time data is available for the final payroll run.

•SwissSalary cannot perform the exit procedure without a payroll run on account without enormous manual effort. The error rate in the exit procedure is reduced to a minimum with payroll on account.

•Vacation and hour balances are correct as of the payroll date and are not shifted to the next month.

•Less pressure on the payroll date of 20.xx.xx, as the payroll run on account can be carried out before the payroll date. This means that the payroll manager can also take vacation during the payroll period, for example.

•Instead of completing the entire payroll at the end of the month, the workload is spread more evenly over the month. This can reduce the workload for the HR department and minimize errors.

•Provisions for vacation and overtime in financial accounting are always calculated precisely at the end of the accounting period and are not carried over to the next month.

•Expenses, including surcharges, expenses, etc., are always calculated precisely for each month in the income statement.

•Fewer queries from internal employees regarding balance management in SwissSalary EasyRapport.

•If an error or incorrect reporting is noticed between the advance payment and final payroll run, it can still be corrected in the corresponding month.

•Far fewer to no support cases for SwissSalary and SwissSalary EasyRapport, resulting in lower support costs.

•With the annual financial statements, overtime and vacation balances are also up to date and can be closed cleanly. This means that the relevant figures are available with the December payroll run.

•Since 2021, the new IT calculation requires that days spent abroad be taken into account accurately. This is because on 20.xx.xx, it may not be 100% clear whether an employee will still have days spent abroad between 20.xx.xx and the end of the month. With the on-account procedure, this information would be 100% available for the final payroll run.