As an employer, you are legally obligated to issue the employee a written pay slip with each salary payment (Art. 323b, para. 1, of the Swiss Code of Obligations). This pay slip must include a detailed list of all additional payments and deductions. In addition to other details, the pay slip provides the employer with an overview of the paid social insurance contributions and also serves as evidence that these have been paid.
If the social insurance contributions are paid using the standard procedure, the employer is also obligated to issue a salary statement to the employee at the end of every year. This is required in order to declare the wage in the employee's tax return and to ensure the income is taxed correctly.
Within the framework of the simplified procedure, both social security contributions and tax at source are settled. The employee does not have to pay any further tax on the income. A salary statement for tax purposes is therefore not required.
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