Liability to Income Tax | TimeMachine for retroactive reimbursement or subsequent charge

Task #7348 | 5053.000

The Canton and the Rate Code fields are already changed retroactively with TimeMachine (timeline) in the Employee Card -> IT tab. By setting the correct ‘Valid from’ date, the corrections and the sub-sequent correction report via ELM are made automatically.

There was generally no retroactive entitlement to exemption (reimbursement) or retroactive IT calculation (subsequent charge) via time line. The Liability to Withholding Tax field now has the Yes/No option (previously check mark) and supplemented by TimeMachine.

Example A (retroactive annulment of withholding tax obligations)

IT was deducted for employee A up to and including September using rate A0Y. By decision of the withholding tax office, the employer is informed that the employee received residence permit C in July and therefore is no longer subject to withholding tax beginning from August. The deductions from August to September are to be reimbursed to the employee in the October pay process.

Open TimeMachine in the Liability to IT field and set the Valid from value to 01.08.2018 and choose No. With the wage accounting process, the base and amount corrections (refund) are carried out automatically.

Example B (retroactive IT obligations)

Employee B will be employed from July 1. The employer assumes that the employee already holds residence permit C or, if necessary, the Swiss passport. Before the November pay process, the IT office informs that payroll has not yet been run for the employee. Inquiries show that employee B holds permit B and is therefore subject to IT.

Open TimeMachine in the Liability to IT field and set the Valid from value to 01.07.2018 and choose Yes. With the wage accounting process, the base and amount corrections (subsequent charge) are carried out automatically.

IMPORTANT NOTE

The correction of retroactive IT obligations can only be made after the import of update 5053.000 and only for periods after this date. The reason for this is that a withholding tax base must be available for previous months’ retroactive obligations for. Up until now, it was only created for employees subject to IT (from now on, for all employees from the time of installation of update 5053.000).