ALV liable

All salary types subject to ALV are assigned to the Subject to ALV Boolean.

Data sheet 2.01 Wage contributions to the AHV, IV and EO contains a conclusive overview of the wage items that are subject to ALV and those that are NOT subject to ALV (similar to Subject to AHV). The data sheet is updated every year and can be viewed on the web page at http://www.ahv-iv.info. For more information on ALV, please refer to data sheet 2.08 Unemployment insurance contributions.

All workers from January 1 of the year following the 17th birthday are subject to contributions. The contribution liability ends when the official retirement age has been reached. In contrast to AHV, once you reach the retirement age, NO ALV contributions are payable, even if you continue to work.

The employee is assigned the correct ALV code in the Social Security Insurance tab of the Employee card. The available codes are below:

0 – ALV not mandatory (adolescents and pensioners starting from the month following the reaching of official retirement age)

1 – ALV mandatory

ALV codes 0 + 1 are automatically and correctly taken into account by the system. The correct AHV code is set based on the employee’s date of birth and the selected billing period. This also applies to back payments of employees who have already resigned.

2 – Marginal salary

3 – Not insured (special case)

ALV codes 2 + 3 can only be assigned manually.

ALV code 2 is set for part-time employees who do not exceed the annual AHV limit of CHF 2'300. If the limit is overwritten, the amounts previously exempt from ALV will be retroactively debited as of January 1.

ALV code 3 is used for employees who, for example, have part-time job in Switzerland and in neighboring countries at the same time. Owing to bilateral agreements, such employees only have to pay social security contributions in one country. A change from ALV code 3 to ALV code 1 cannot be made automatically and must be made manually in individual cases.