Swiss Shadow Payroll

Swiss Shadow Payroll Use Cases

The situations that require a shadow payroll can be varied.

A Swiss shadow payroll may be required in the following cases:

• To calculate Swiss social security, accident insurance and tax deductions on gross salaries paid in foreign currencies
• A salary component is to be paid net of taxes and social security to employees
• Calculation of Swiss withholding taxes on a portion of the gross salary (when only certain working days of a month are taxable in Switzerland)

What Does the Shadow Payroll Include?

• Detailed analysis of the (international) employment relationship
• Currency conversion from foreign currencies to CHF
• Swiss tax calculations including gross-up
• Calculation of Swiss social security contributions including gross-up
• Review of which salary components are subject to taxes and social security in Switzerland
• Coordination with your payroll team or external payroll providers
• Correspondence with authorities