With the development of teleworking, particularly after the Covid-19 pandemic, the rules governing the management of teleworking have undergone a number of changes. Understanding these rules is essential to ensure legal compliance, both in terms of social security and taxation. This article aims to clarify the rules that apply depending on your employees’ country of residence.
Teleworking and social security.
Germany, Austria, France, Italy, Liechtenstein and other signatories to the multilateral agreement :
On 1 July 2023, a new multilateral agreement came into force for several countries in the European Union (EU) and the European Free Trade Association (EFTA), including our neighbours Germany, Austria, France and Italy. This agreement allows cross-border commuters to telework up to 49.9% of their working time from their country of residence, while remaining affiliated to Swiss social insurance schemes. However, some administrative formalities are required.
Key points of the agreement:
As an employer in Switzerland, it is your responsibility to monitor the percentage of your employees who telework and, if necessary, to request an A1 certificate to prove that they are covered by the Swiss social security system.
Below is a summary table:
Teleworking taxation
Teleworking also has a direct impact on the taxation of cross-border commuters. Days worked abroad must be taxed in the country of residence if the rate of teleworking exceeds a certain threshold, which varies from country to country.
France:
Since 1 January 2023, frontier workers residing in France have been able to telework up to 40% of their annual working time without this affecting their tax regime. The aim of this permanent agreement is to avoid the tax complications associated with the increasing use of teleworking. For these employees, taxation remains in Switzerland as long as teleworking does not exceed the 40% threshold, i.e. 2 days for a 100% employee. This rule also applies to temporary assignments carried out in France or another country, provided they do not exceed 10 days per year.
It is also important to remember that the Attestation de Résidence Fiscale (ARF) is still compulsory for French cross-border commuters working in the Swiss cantons of Bern (BE), Basel-Landschaft (BL), Basel-City (BS), Jura (JU), Neuchâtel (NE), Solothurn (SO), Vaud (VD) and Valais (VS).
Italy:
The situation is different for Italian cross-border commuters. From 1 January 2024, these employees may telework up to 25% of their working time without any impact on their tax regime.
As long as the percentage of teleworking remains below these thresholds, the employee will only be taxed in Switzerland.
Key points to remember
In conclusion
Managing teleworking for cross-border employees requires in-depth knowledge of international agreements and constant vigilance to ensure compliance with tax and social security rules. As a Swiss employer, good management of these aspects enables you to protect your business while offering your employees the flexibility they need when teleworking.
By subscribing to our AdminPack services, you can keep abreast of current legislation and updates to ensure that your human resources management complies with the regulations.
In our final article on the subject of incapacity for work, we take a look at the distinction between notice periods and protection periods, which can be a real challenge for employers to manage. Between the law and contractual specificities, the risk of making mistakes is high, which can have significant legal and financial consequences. Ekspert is here to help you navigate these complex waters and avoid common pitfalls.
Understanding notice periods
Leave periods vary according to a number of criteria, including the length of service of the employee and the nature of the contract (fixed-term or open-ended). Here are the key points to be aware of:
Distinguishing between protection periods
Protection periods are periods during which an employee is protected against dismissal, particularly in the event of illness, accident, pregnancy or military service. Here’s what you need to know:
Pitfalls to avoid
Case study:
Mr Dupont, an employee with 7 years’ seniority, receives a letter of dismissal on 21 August. The contractual notice period is 2 months net, with an end date of 21 October. However, several events disrupt this period.
Calculation of the actual notice period :
How can you be sure you’re doing the right thing?
Managing notice and protection periods is not only complex but also crucial to avoiding disputes.
It’s easy to get lost in the dates and confuse the end of the notice period with the end of the protection period or the end of the employment contract.
At ekspert, we manage this with precision and compliance.
Contact us today for more information about our AdminPack services!
Managing staff is a delicate task, requiring not only human resources skills but also a good understanding of the legal aspects. One of the thorniest issues for employers is how to distinguish between illness and accident when one of their employees suffers a health problem. Although this distinction is subtle, it has major implications for the way costs are met and the continuation of salary. Here’s what you need to know to avoid common pitfalls and manage these situations effectively.
What does the law define as an accident?
According to the Federal Law on the General Part of Social Insurance (LPGA), an accident is characterised by five specific and cumulative conditions:
Why is this distinction crucial?
The distinction between illness and accident is essential, as it determines which insurance will cover the costs and how absences will be managed. If the event is classified as an accident, accident insurance (LAA) will cover the costs, with no deductible or co-payment for the employee, and a wider range of benefits than basic health insurance. If the injury is considered an illness, basic health insurance will cover the costs, often at the employee’s expense.
Pitfalls to avoid and points to watch out for
Inguinal hernia
An inguinal hernia (relating to the groin) is generally an illness, unless it occurs after a sudden and unusual physical effort, such as lifting a very heavy object unexpectedly.
However, if carrying heavy loads is part of the employee’s daily routine, this same hernia will be considered an occupational illness (covered in the same way as an accident).
Tinnitus after a concert
If an employee develops tinnitus after a concert, this is not an accident, as the exposure to noise was prolonged and not sudden. However, if the tinnitus occurs after a sudden explosion at a festival, it could be considered an accident.
Insulation
Inadvertently spending hours in the sun at the risk of catching sunstroke leading to incapacity for work is considered to be an illness, due to the foreseeable and non-sudden nature of the event, caused by negligence on the part of the person concerned.
Conclusion
Distinguishing between illness and accident is not always easy, and can become a real headache for employers.
In fact, wrongly declaring an illness to your accident insurer could increase the costs of managing your contract (file management fees) and lead to an increase in your premiums.
At ekspert, we are used to this and are here to help you save time. By mastering the legal criteria and adopting rigorous documentation and monitoring practices, we can ensure that these situations are managed efficiently.
Contact us today for a personalised quote!
As we head into the summer months, it’s time to talk holidays! These precious moments of relaxation are meant for rest and relaxation, but they can go wrong.
What should you do if one of your employees falls ill or has an accident while on holiday? Does it make a difference if they’re abroad? What are the employer’s rights and obligations in such a situation?
To provide you with the best possible information, we have put together a guide to the most important points:
What are the rules on sickness/accidents during holidays?
The law is clear: holidays must allow employees to rest (in accordance with 329 ff of the Swiss Code of Obligations). If an employee falls ill (or is injured in an accident) to such an extent that they are unable to enjoy their holiday, they can reclaim these lost days of leave. This generally excludes incapacity of less than 3 days or incapacity not exceeding 30% of the planned rest period. It is therefore important to distinguish between incapacity to work and incapacity to take holidays.
Here are a few key points to bear in mind:
What should employers look out for?
To avoid disputes and ensure that leave is managed smoothly, here are a few recommendations for employers:
Why delegate management?
Understanding and correctly applying the rules concerning the recovery of lost holiday days in the event of illness (or accident) helps to maintain a fair and respectful working environment. Trust ekspert to manage these situations with rigour, precision and responsiveness, and concentrate on what really matters: the success of your company!
We can help you with all the administrative aspects of personnel management. We ensure that every situation is handled in accordance with the law, protecting both your interests and those of your employees.
For more information, contact us today to find out more about our dedicated personnel management services!
Welcome to our latest article on managing child benefit!
Specific rules to be aware of
International Conventions
In Switzerland, family allowances for children living abroad are only paid if Switzerland is obliged to do so under an international social security agreement. Such agreements exist in particular with the European Union (EU) and the European Free Trade Association (EFTA). For agricultural workers, agreements also exist with certain other countries, such as Türkiye.
Type of benefits that can be exported
Where an entitlement to benefits exists, only certain benefits are exported:
o Child allowance and training allowance: exported.
o Childbirth allowance and adoption allowance: not exported.
o Household allowance for agricultural workers: exported in certain cases.
Education abroad
Children leaving Switzerland for training purposes are presumed to remain resident in Switzerland for five years, thereby continuing to be entitled to family allowances. However, this presumption may be overturned if certain criteria are met, such as loss of compulsory health insurance (LAMal) or lack of regular contact with Switzerland.
Special cases
EU/EFTA nationals
Nationals of EU/EFTA countries who are gainfully employed in Switzerland are entitled to benefits for their children who are resident in the EU/EFTA. (Benefits are also payable to persons not in gainful employment domiciled in Switzerland, provided their children live in the EU/EFTA).
Children living in non-contracting countries
Family allowances are not generally paid for children living in countries with which Switzerland does not have an agreement, except in the case of certain Swiss employees working abroad or seconded by a Swiss company.
Brexit
Since 1 January 2021, the rules for the United Kingdom have changed. People in a situation of expatriation or residence with the UK before this date continue to receive family allowances, but new cross-border situations after 2021 no longer give entitlement to these allowances.
How ekspert can help
Managing family allowances for children living abroad involves in-depth knowledge of complex rules and tedious administrative procedures. At ekspert, we specialise in this area and offer comprehensive services to manage these aspects for you:
o Entitlement analysis: to determine your employees’ entitlement to family allowances in accordance with the relevant international conventions.
o File management: to set up and follow up files with the relevant institutions.
o Personalised advice: to optimise their entitlements and answer your specific questions.
o Administrative follow-up: to ensure that the benefits received are those due, taking into account any changes in legislation or circumstances.
Entrusting us with the management of your staff’s family allowances relieves you of the associated administrative burden, saves you a lot of time and ensures that your employees’ rights are fully respected.
By delegating this task to us, you strengthen your employer brand and offer your employees peace of mind and comfort!
Contact us today for more information!
Entrusting the administrative management of your staff to ekspert PLC, an Abacus partner specialising in these procedures, means choosing peace of mind and time saving.
Our experts will take care of all the complex formalities and subtleties of the law, so you don’t have to worry or wonder. Find out how Julie, our specialist, clarifies the most technical aspects of training allowances with a customer who has subscribed to our AdminPack service.
Julie (ekspert) : Hello Mr Martin, how can I help you today?
Paul Martin (HR Manager customer): Good morning. I’ve got some questions about training allowances for one of our employees, but frankly I don’t think it’s really useful. I don’t think he’s entitled to it, but I want to be sure.
Julie: I understand your concerns. What exactly do you want to know?
Paul: In my experience, benefits are only available if the child is at least 16. Our employee’s child is 15 and is about to start post-compulsory education. That’s not going to work, is it?
Julie: In reality, if the child has completed compulsory schooling and is at least 15 years old, he or she can receive training allowances from the start of his or her post-compulsory training. The age limit of 16 is not a blocking criterion.
Paul: Really? I thought it was rigid. And these allowances are only paid for a year, aren’t they?
Julie: Not at all. The benefits are paid until the end of the child’s training, but no later than the month in which he or she turns 25.
Paul: OK. But if the child starts training before the age of 16, that complicates things, doesn’t it?
Julie: In fact, if the child starts training before the age of 16, the employee can benefit from the allowances as soon as the child has reached the age of 15. There are no additional complications.
Paul: And if the child works while studying, that cancels out the benefits, doesn’t it?
Julie: No, as long as the child’s gross income does not exceed CHF 2,450 per month or CHF 29,400 per year, including the 13th salary, this does not cancel the benefits. Please note that daily allowances from certain insurance companies are also considered as income.
Paul: I’ve been told that retroactive allowances are impossible. So if the employee doesn’t apply in time, or if they provide us with the training certificate after the training has started, they lose their entitlement.
Julie: That’s not correct.Retroactive claims are possible. If the employee did not apply for benefits from the outset or takes several months, for example, to obtain a training certificate, he or she can do so within 5 years of becoming entitled and receive payments for the periods in the past when he or she was eligible.
Paul: In the end, it’s much more flexible than I thought.Thanks for clarifying!Julie: You’re welcome.Managing child benefit may seem complex, but it’s our speciality. We’re here to make your life easier. See you soon!
By entrusting the management of your child benefit to our specialist teams, you benefit not only from clear and reassuring expertise, but also from a partnership that frees up your resources to concentrate on developing your business.
Contact us today to find out how we can simplify and optimise the administrative management of your staff!
Priority beneficiaries and differences between cantons
The administration of family allowances is a complex and confusing area. Between federal and cantonal laws, types of allowances and eligibility conditions, it’s easy to get lost in the maze of this administration!
At ekspert, an Abacus partner specialising in payroll management and HR administration, we understand the subtleties and challenges involved.
To better understand where our added value lies, let’s analyse together a situation that may seem simple at first sight, that of a child whose parents are both eligible for family allowances.
How do you know who has priority?
By law, only one allowance can be paid per child. In this case, the following order of priority applies:
What if the parents work in different cantons?
The situation becomes more complex: the parent with the highest income, whether employed or self-employed, is given priority. However, if the non-priority parent lives in a canton offering higher benefits, he or she can receive the difference between the two cantons’ benefit amounts. Please note, that this difference is only paid if the parent is gainfully employed; otherwise, no additional allowance is paid.
What if the parents are divorced?
It is therefore essential to determine who has parental authority. If it is shared, the order of priority follows the same rules as for non-divorced parents. The situation of each parent must be examined carefully, taking into account whether they are gainfully employed and the child’s canton of residence.
Conclusion
ekspert’s aim is to simplify this process for our customers, by offering a quality service and in-depth expertise.
Companies can thus free themselves from administrative constraints, with complete confidence that their obligations will be carried out accurately and in compliance with legislation.
As you can see, by entrusting the management of their family allowances to ekspert, an Abacus partner specialising in payroll management and the associated administrative procedures, companies are a double winner!
Next article
Our series on family allowances continues! We’ll be back shortly with our next article on training allowances. See you soon!
Did you like this article?
Then like and share it on Linkedin, to help us do more for you!
Global survey reveals key trends
We would like to share with you the results of a recent study carried out by a global player in centralised payroll solutions, which aims to assess payroll’s current performance, resilience and strategic contribution, as well as reporting on its future potential.
The COVID-19 pandemic has highlighted the need for a more innovative approach to payroll operations. Companies need to make their payroll functions more forward-looking and pragmatic, with a focus on better integration at all levels.
The study also reveals that payroll transformation initiatives over the next few years are being driven by factors such as cost optimisation, digitisation, operational efficiency and improving the employee experience.
What do organisations need to ensure an efficient payroll?
Payroll accuracy
Payroll accuracy is crucial to employee retention. However, the study reveals that the average rate of payroll accuracy is only 78%, highlighting the need to streamline, connect and digitise payroll systems and processes.
Balancing a global vision with local expertise
In a global market, businesses need a holistic view while maintaining local knowledge, including payroll information. The study highlights the increased need for the right organisational structure and technology for integrated reporting and analysis, underlining the importance of leveraging local expertise rather than focusing too much on global delivery.
Consider the importance of IT
Data security is essential when processing payroll data. Yet the results show that many companies lack contingency plans and data security manuals, highlighting the need to minimise IT complexity and strengthen security protocols.
From operational to strategic – the modern payroll team
As businesses look to improve operational efficiency, a combination of the right payroll strategies and payroll talent is essential to meet business objectives and prepare for the future.
To deliver effective payroll, fundamental changes are required in the processes, tools and skills within payroll functions.
Working with payroll specialists such as ekspert ensures that the employee experience is improved, payroll is accurate, technology is more reliable and data security is strengthened.
*Source: ADP – What to expect from payroll in 2024?
Accurate and transparent payroll management is essential to the smooth running of any business, especially in times of uncertainty and change. It is crucial to employee engagement, productivity and well-being, ensuring that employees are fairly rewarded for their contribution to the success of the business. However, challenges persist.
According to a recent survey by a global player in centralised payroll solutions, errors in payroll processing are on the rise, with only 33% of companies reporting 90% or better accuracy in payroll processing, down from 52% before 2020. What’s more, almost a third only discover these errors during a payroll audit, while a quarter only detect them when they receive a complaint from an employee.
This situation is worrying because it is leading to an increase in requests for clarification from employees: in fact, almost half of the companies surveyed report an increase in payroll-related requests since before 2020. Yet despite a growing awareness of these issues, only 36% of companies plan to actively tackle them in the next two to three years.
In addition, there is a growing shortage of skilled staff to manage payroll effectively, with almost 48% of employers reporting difficulties in finding the required skills from outside their organisation. This situation is compounded by the fact that payroll teams spend a considerable amount of time on secondary administrative tasks, with more than one in five companies surveyed (22%) estimating that their teams spend more than 30 hours a week consolidating data between payroll and HR systems. Fortunately, there are some promising solutions!
Nearly 70% of companies claim to have introduced more frequent internal audits over the last three years, and 61% have conducted employee surveys to detect payroll errors.
However, it is the automation of payroll processes that could significantly improve efficiency, with only 53% of companies surveyed acknowledging that less than 30% of their payroll processes are currently automated.
This is where outsourcing payroll to specialists such as Ekspert makes real sense.
Outsourcing their payroll management allows companies to be relieved of the current challenges it entails, such as researching and financing innovative technological solutions and training and developing staff.
Using this solution would not only improve the accuracy and efficiency of payroll, but also free up employees’ time so that they can concentrate on higher value-added tasks.
In conclusion, payroll management is much more than a simple administrative task. It is an essential pillar of the company, which deserves all the attention it needs to evolve into the future.
When you turn to Ekspert, specialists in payroll management and an Abacus partner, you can be sure of being surrounded by professionals experienced in this complex and strategic process.
*Source: ADP-The_potential_of_payroll-Global_payroll_survey_2022_CH_EN
And how can you make it more profitable?
In the world of HR and finance, cutting costs is often at the top of the priority list. This drive to optimizing costs intensified after the pandemic to ensure long-term business continuity.
Did you know that, on average, remuneration accounts for 50-60% of a company’s expenditure?
The cost of running payroll varies depending on a number of factors, including the size of the business, the payroll operating model and the cantons/countries where employees are based. If you manage payroll in-house, costs include the purchase of software licences, installation of hardware and software, as well as the human and material resources required to run the payroll and maintain and upgrade the payroll infrastructure. Companies therefore need to think strategically about payroll management.
And that’s where Ekspert – a payroll specialist and Abacus partner – comes in!
Opting for an outsourced payroll management system can result in substantial savings, ranging from 15% to 35%.
Let’s see how:
In addition, it is important to consider hidden costs, such as the integration, training and replacement of payroll professionals, as well as system maintenance costs.
By outsourcing payroll processing, companies can convert the fixed cost of payroll administration into a variable cost, based on the number of employees and company sites involved. This offers greater flexibility and savings on a large scale.
In conclusion, while the issue of payroll cost is important, it is essential to consider the potential savings and long-term financial benefits of an efficient and cost-effective payroll.
By entrusting payroll management to specialists such as Ekspert, Abacus partner, companies can not only make substantial savings, but also benefit from cutting-edge expertise in the field of payroll management and salary administration in Switzerland.