Switzerland Employer Payroll — AHV/IV/EO, ALV, UVG & Quellensteuer

Establish the legal and insurance framework before any calculation. Determine each employee residence permit status (Swiss/C-permit vs B/L/G-permit for Quellensteuer), employment type, and whether they are subject to mandatory UVG accident insurance (all employees) and BVG/LPP occupational pension (employees earning above CHF 22,050/year). Confirm the employer registered Ausgleichskasse and UVG insurer.

Calculate the AHV/IV/EO contribution base for each employee: gross salary including bonuses, commissions, and benefits in kind, minus exempt items (reimbursed business expenses at flat rates per Kreisschreiben Nr. 25 ESTV). For Quellensteuer employees, identify the applicable cantonal tariff code (A, B, C, D, H) based on civil status and number of dependent children.

Compute all statutory payroll deductions. Employee and employer each pay 5.00% AHV + 0.70% IV + 0.25% EO = 5.95% of gross salary. ALV is 1.10% each side up to the ceiling of CHF 148,200/year, then 0.50% Solidaritätsbeitrag up to CHF 370,800 (2025 figures). UVG covers occupational accidents (BUZ, employer-paid) and non-occupational accidents (NBU, employee-paid, typically 1.0–2.5%). KTG daily sickness allowance premium is split per company policy or GAV.

For employees subject to Quellensteuer, apply the applicable cantonal tariff table to the monthly gross salary including all taxable benefits. Each canton publishes annual Quellensteuertarife; the correct tariff code (A0 through H with child suffixes) determines the effective withholding rate. Cross-border G-permit employees are taxed in the canton of the workplace. Employees earning above CHF 120,000/year must also file a supplementary ordentliche Veranlagung.

Produce the monthly payslip (Lohnabrechnung) for each employee showing gross salary, all statutory deductions (AHV/IV/EO, ALV, NBU, KTG, Quellensteuer, BVG employee contribution), and net pay. Prepare employer payments to the Ausgleichskasse (combined AHV/IV/EO + ALV), the UVG insurer, and the cantonal Steueramt for Quellensteuer, each by their respective deadlines.

At year-end, reconcile total AHV/IV/EO contributions against the definitive Ausgleichskasse settlement, prepare the annual Lohnmeldung (salary declaration) to the Ausgleichskasse, and issue the Lohnausweis (Form 11) to each employee by 31 January of the following year. The Lohnausweis is also submitted to the cantonal tax authority as the basis for employee income tax assessments. For Quellensteuer employees, prepare the annual Quellensteuerdeklaration reconciling all monthly withholdings.