Payroll in Switzerland: the essential checklist for employers and employees

Managing payroll in Switzerland involves numerous legal and administrative obligations. To avoid mistakes and save time, it’s essential to know exactly what needs to be considered – both from the employer’s and the employee’s side.

This practical checklist guides you step by step to ensure compliant and efficient payroll management.

Checklist for employers

• UID number

Every company must be registered in the commercial register and hold a UID number. Self-employed persons may operate without a UID, unless annual turnover exceeds CHF 100,000.

• Registration with a compensation office

All employers must register with the cantonal compensation office. This covers AHV/IV/EO, unemployment insurance, family allowances, and administrative fees.

• Withholding tax number

If you employ staff subject to withholding tax, you must obtain a number issued by the employee’s canton of residence.

• AHV number

Each employee must be declared to the AHV compensation office. Employers are responsible for this registration.

• Accident insurance (UVG/LAA)

Mandatory for all employees:

– Less than 8 hours/week → only occupational accidents

– From 8 hours/week → includes non-occupational accidents

• Daily sickness allowance insurance (optional but recommended)

Covers salary continuation in case of illness (usually 80% of salary for 720 days within 900 days).

• Supplementary accident insurance (optional)

Employers may extend coverage beyond the minimum compulsory protection.

• Occupational pension (BVG/LPP)

Mandatory for employees earning more than CHF 22,680 per year (2025). Employees under 18 are not covered.

• Vacation policy

Essential for hourly-paid staff: a vacation allowance must be included in the hourly wage, clearly stated in the contract or regulations.

• Company IBAN

A professional IBAN is required for salary payments and electronic payment file submissions.

Checklist for employees

• AHV number

Every employee must have an AHV number to be correctly registered with the compensation office.

• Residence or work permit

Required for non-Swiss nationals.

– EU/EFTA citizens: permit requested from the municipality of residence

– Non-EU/EFTA citizens: permit via cantonal migration and labor authorities

• Bank details (IBAN)

A bank account is necessary to receive salary payments.

• Children declaration

Required to claim family, education, or adoption allowances. Applications must be made to the relevant family allowance fund.

• Allowances

Benefits (e.g., car, phone) must be declared and approved by the canton. Approved allowances are tax-exempt and appear as expenses on the payslip.

How quitt Business makes it easier

Swiss payroll is complex: AHV, BVG, withholding tax, insurances, allowances… the list is long.

quitt Business takes care of everything for you:

• Registration of your company and employees with social security funds

• Complete payroll management: salaries, deductions, allowances, taxes

• Automatic generation of contracts, payslips, and salary certificates

• Real-time integration with insurances and tax authorities

👉 This saves you time, reduces errors, and ensures full compliance.

Conclusion

Managing payroll in Switzerland requires accuracy and clarity. With a clear checklist and the support of quitt Business, you simplify the process and ensure reliable, transparent payroll administration.