Median Wage |
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The 2021 withholding tax reform now provides for rate-determining value calculation with the median wage taken into account. With this construct, all employees with very little employment information should also be taxed as fairly as possible.
For the median wage to be used for rate determination, the following conditions must be met cumulatively: •the person is a Income tax payer •the person has multiple occupations •a level of employment cannot be determined for any of the occupations •total level of employment is unknown •total gross income is unknown
The tool in our FAQ income taxRate-determining income will also help you with the median wage if the questions have been answered accordingly. If all these conditions are met, the so-called median wage is used for the rate-determining value. It corresponds to an ‘average wage’. Each canton provides this value every year along with the withholding tax rate. The wage subject to withholding tax remains unchanged; the value is only used to determine the rate. Unlike the values actually billed for a calculable total level of employment, you do not see the median wage value in wage items. If gross income in a month is higher than the median wage, the rate table percentage is applied. If gross income is lower, the percentage based on the median wage is applied.
Enter the person as withholding tax payer with the regular applicable rate information as well as ‘yes’ and 0% for other known income sources. Additionally enable the median wage IT category.
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