PAYROLL IN SWITZERLAND

If your business is expanding into Switzerland, it’s important to remember that while the country sits in the heart of Europe, it is not part of the European Union. With cross-border workers commonplace, Switzerland has various bilateral agreements with its neighbours and strict tax regulations on the percentage of time each employee spends abroad. Getting your payroll compliance right means a happy, engaged and motivated workforce. Getting it wrong can result in financial penalties, investigation by local authorities and reputational damage.

Payroll and HR regulations are similar in most developed nations; however, it's the ‘exceptions’ in each country that tend to cause challenges. In Switzerland, there are 26 cantons/jurisdictions, each with its own tax rates, labour laws and business practices. Each canton has its own official language (German, French, Italian or Romansh), which should be used for all documentation, payslips, salary certificates and communication with authorities.