Net wage compensation | different settings

Task #4836 | 5065.000

We have now combined the calculation logic for “Net salary compensation” and “Gross for net (BfN)” in the “Net salary compensation” function. This calculation method can be used in practice for insurance daily allowances and special payments (long-service bonus, bonus).

The following settings can be made in the “Net wage compensation” field for each individual salary type:

•Deactivated: No net wage adjustment is made for this salary type.

•Activated with Income tax: If this option is selected, the employer pays the employee's social security contributions and withholding tax deductions. Our calculation is carried out by iterating the social security bases and the withholding tax base.

Note: In most cases, this option is selected for insurance daily allowances. This is because the employee should not receive a higher payment as a result of the daily allowance processing than if no daily allowance is processed. To achieve this result, the withholding tax base must be taken into account for persons subject to QST.

•Activated without Income tax: If this option is selected, the employer only pays the employee's social security contributions. This calculation is made by iterating the social security bases.

How can the calculation be checked?

•You can proceed as follows for insurance daily allowances:

Create a test payroll for the employee without daily allowance corrections or make a note of the net wage amount. Then enter the daily allowance correction and the daily allowance salary type and create another test payroll run. Salarye type 1160 is now automatically displayed in the gross wage area with a minus amount. The net wage amount should be the same as without the daily allowance correction. Please note that this net wage adjustment only makes sense if the daily allowances remain in the company and are therefore processed via a daily allowance wage type and a correction daily allowance wage type. If daily allowances are forwarded, a separate daily allowance wage type without net wage adjustment should be used.

•Special payments (e.g. long-service award or bonus). The employer pays the social security contributions and income tax.

1.Create a test statement without a special payment and note the amount paid out.

2.For example, report CHF 1'000.00 with a salary type in which the option “Activated with income tax” is selected in the “Net wage compensation” field.

3.Create a test payroll again. The payout amount must now match the payout amount noted in step 1 plus the special payment amount.

•Special payments (e.g. long-service award or bonus). The employer only pays the social security contributions

1.Use a salary type in which the “Net wage compensation” field is deactivated. Create a test payroll run for a person subject to QST with which, for example, a total of CHF 1'000.00 is settled and make a note of the amount of all social insurance contributions.

2.For example, report CHF 1'000.00 with a salary type in which the option “Activated without withholding tax” is selected in the “Net wage compensation” field.

3.Create a test payroll again. The amount paid out now differs by approximately the amount of social security contributions noted in step 1.

Note: The higher the special payment, the greater the difference between the amounts from steps 1 and 3 may be. This is because the amount of the net salary compensation is itself also subject to social security and withholding tax. This increases the IT rate-determining income and the tax progression, which in turn influences the percentage of withholding tax rates.

Up to update 5064.000, the offset amount (net wage compensation) was only shown when processing insurance daily allowances. As of update 5064.000, the offset amount for special payments (BfN) is also shown with the same salary type and included in the social security/income tax amount approaches. This results in better traceability.