{"id":112221,"date":"2022-07-11T11:00:00","date_gmt":"2022-07-11T11:00:00","guid":{"rendered":"https:\/\/dataunit.nadlotest.ch\/?p=112221"},"modified":"2026-07-30T12:17:42","modified_gmt":"2026-07-30T12:17:42","slug":"payroll-accounting-in-switzerland-basic-concepts","status":"publish","type":"post","link":"https:\/\/dataunit.nadlotest.ch\/en\/2022\/07\/11\/payroll-accounting-in-switzerland-basic-concepts\/","title":{"rendered":"Payroll accounting in Switzerland, basic concepts"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/pf-prod-sapit-partner-prod.cfapps.eu10.hana.ondemand.com\/profile\/0000645519\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>Payroll processing is a key function of human resources. This document not only details wages but also deductions and allowances for various reasons, which would be impossible without it.\u00a0Payroll software causes a lot of headaches.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This article covers some basic concepts of payroll accounting as well as helpful aspects of the technology.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Basic concepts of payroll accounting<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before you create a payroll statement, you should master certain basic concepts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Difference between salary and wages<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These two terms are sometimes confused or used synonymously.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Salary is a general term that indicates the total earnings of the employee from the employment relationship, whether paid directly by the employer or not.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The term wage refers to the earnings that are received directly from the employer as compensation for work performed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second term is used for payroll accounting, referring to the amount to be paid monthly by the employer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Additional calculations<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Almost all wages are calculated based on specific criteria. There is a base salary that is contractually agreed upon, and certain variables that depend on other factors, such as performance bonuses, profit sharing, target-related bonuses, or productivity awards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This part of the wage is called &#8220;extras&#8221; and depends very much on the type of contract, the location of the company, and the employee himself and his performance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Types of contracts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are [various] in all countries.&nbsp;<a href=\"https:\/\/www.getyourlawyer.ch\/arbeitsrecht\/arbeitsvertrag\" target=\"_blank\" rel=\"noreferrer noopener\">different types of contracts<\/a>, which you should be aware of, as they determine a large part of the payroll.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is advisable to use open-ended contracts. While it is true that it is possible to draw up contracts for work or services, which are also very common, these are nevertheless the exception to the general rule of open-ended contracts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contracts for work and services are used to address special work situations, e.g., when it is necessary to temporarily replace an employee or to hire employees due to temporary peak workloads.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These types of contracts may only be extended three times, and their total duration may not exceed three years.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Furthermore, employment contracts may not exceed six years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Calculation of additional services<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In addition to the aspects already mentioned, the following information, for example, must be known for a correct payroll accounting: vacation days taken, excused or unjustified absences, sick leave, parental leave, various bonuses, overtime or night shift bonuses, allowances and other additional benefits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To mention just a few of the benefits that are included in the calculation of additional benefits, the employee is entitled, for example, to a thirteenth month&#8217;s salary.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This allowance is payable every year before December 15th.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You should therefore take this into account when calculating the wage for the month of December, taking into account the hours worked in the calendar year in which the employee was newly hired, or when the employment contract ends or is terminated due to a matter concerning the employee.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Social benefits<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite all this, it is necessary to take into account the social support services prescribed by Swiss law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, social security provides for wage replacement benefits due to occupational disease or long-term illness for people who are unable to work due to illness.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All working mothers and fathers are also entitled to parental allowance when a child is born.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During parental leave, to which mothers and fathers are entitled individually or jointly, a sum is paid in cash to replace lost earnings during the time spent at home with the child.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As you&#8217;ve seen, payroll is a complex process that requires considering many variables. Payroll software like SAP Business One can simplify things and make the results more reliable.\u00a0Contact us at any time, if you would like to see a non-binding demonstration.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Working hours<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Working time is the period during which the&nbsp;<a href=\"https:\/\/www.seco.admin.ch\/seco\/de\/home\/Arbeit\/Arbeitsbedingungen\/Arbeitnehmerschutz\/Arbeits-und-Ruhezeiten.html#:~:text=Die%20w%C3%B6chentliche%20H%C3%B6chstarbeitszeit%20betr%C3%A4gt%3A,Woche%20f%C3%BCr%20alle%20%C3%BCbrigen%20Arbeitnehmenden.\" target=\"_blank\" rel=\"noreferrer noopener\">Employee<\/a>&nbsp;Provides services for the employer.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, there are other working time arrangements, such as flextime or time off in lieu. Currently, the so-called adaptability arrangement is gaining importance, as it allows for the introduction of flexible working hours. This means that employees can adjust their working hours to the needs of the company by extending or shortening them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mobility<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The place of work is one of the elements that should be included in the employment contract, without forgetting that, except in cases prescribed by law, it is not necessary to specify it.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This does not exclude the obligation to notify the employer, which is why the Labour Act stipulates that the employer must inform the employee about relevant aspects of the employment contract (Art. 106, para. 1 Labour Act).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Payroll processing is a key function of human resources. This document not only details wages but also deductions and allowances for various reasons, which would be impossible without it.\u00a0Payroll software causes a lot of headaches. This article covers some basic concepts of payroll accounting as well as helpful aspects of the technology. Basic concepts of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":112224,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10084],"tags":[],"class_list":["post-112221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Payroll accounting in Switzerland, basic concepts | DATA UNIT<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Payroll accounting in Switzerland, basic concepts | DATA UNIT\" \/>\n<meta property=\"og:description\" content=\"Payroll processing is a key function of human resources. 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