CONVINUS Global Mobility Insights NEWSLETTER Herbst / Fall 2022

Global Mobility Insights - Herbst / Fall 2022
without an employer liable to pay
contributions). The employee must be
registered with a social security
authority. In addition, an accident
insurance and a pension fund must be
taken out for the employee.
Swiss employers usually also take out
a daily sickness insurance to cover the
continued payment of salaries in the
event of illness. Since this insurance is
not compulsory, every foreign
employer is free to decide whether to
take out such a daily sickness
insurance.
is taxed when the tax return is filed in
Switzerland. The amount of the tax
burden is calculated based on the
employee's canton and the
municipality of residence. Therefore
the taxation varies also depending on
the personal situation.
Permanent establishment
In Switzerland, too, an examination of
the permanent establishment risk
should be carried out while
employing workers, so that one is
protected from consequences at the
company level.
It should be noted that Swiss
insurance policies and regulations
apply to the continued payment of
salaries in the event of accident or
illness. It is therefore advisable to also
take out a daily sickness insurance for
the obligation to continue to pay
salaries in the event of illness.
The insurance contributions are
divided between the employer and
the employee according to the legal
regulations. As a rule, this means that
the contributions are split 50 / 50.
As a rule, it also applies in Switzerland
that "auxiliary activities" do not lead
to the creation of a permanent
establishment in Switzerland.
Payroll
In principle, there is no legal
requirement to run a payroll for
remote workers in Switzerland,
provided that no salary is paid out in
Switzerland. However, it is advisable
to run a payroll in Switzerland due to
the social security obligation. This
ensures that the correct contributions
are calculated.
Taxes
The withholding of the tax at source
by the foreign employer is not
provided by law. The tax at source
only has to be withheld from the
salary in Switzerland if there is an
employer in Switzerland.
In these cases,
the earned income
Accordingly, in such situations one
would run payroll abroad (country of
domicile of the employer) as well as in
Switzerland. In Switzerland, this is
merely a shadow payroll for the
deduction of Swiss social security
contributions. This shadow payroll
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