Tax at Source Setup

Field name	Description
Code	The Code field contains the name of the canton (abbreviation). This field cannot be changed.
Description	This field includes the name of Canton. This field cannot be changed.
Membership No.	The number entered here will be printed on the withholding tax accounting.
Commission	Administrative costs for the collection of Income tax will be compensated to the employer with the entitlement provision.
Calculation Type	According to current standards, the cantons of FR, GE, TI, VD and VS will use the annual calculation model, while the remaining 21 cantons will use the monthly calculation model. What are the fundamental differences between the two models? Fiscal period Month model = month Year model = calendar year Wage subject to withholding tax Month model = gross monthly income Year model = gross monthly income Rate-determining wage subject to withholding tax Month model = gross monthly income Year model = annual gross income divided by 12 Annual settlement Month model = not allowed Year model = mandatory Basically, it can be stated that the calculation in the Month model only relates to the corresponding month. The entire calendar year is always recalculated in the Year model and the amounts already deducted in the previous month are credited back. Furthermore, this manual does not discuss the full calculation, but, as mentioned at the beginning, refers to the official documents of the Federal Tax Administration and Swissdec Guidelines.