Child Allowances Payed by Compensation Fund

If child allowances are paid directly to the beneficiary by the compensation office, this must be indicated on the salary certificate. The practice of paying family allowances directly to employees from the compensation office is particularly common in the cantons of western Switzerland, and the canton of GE also applies a “special case.”

In order for the text “Child allowances not included in the salary statement, paid by the compensation office” to be printed on the salary statement (item 15), only the check mark “Child allowances by compensation office” must be activated in the personnel master data. Processing the wage type is not a mandatory requirement.

Please note that if the allowances are not taken into account in payroll processing for persons subject to withholding tax, they cannot be included in the rate determination or in the wages subject to withholding tax.

The Swissdec guidelines contain a table with the three possible variants and the respective consideration of family allowances for withholding tax and the wage statement.