Setting up and managing payroll in Switzerland
Switzerland’s natural beauty, world-famous standards of living, high GDP, convenient location in Central Europe, and various other factors make it a brilliant place to expand any business.
If you are planning an expansion into Switzerland, some important early steps will probably be establishing an entity, hiring a workforce, and setting up a payroll in the country. Unfortunately, these processes can take weeks to complete, potentially delaying your expansion significantly.
A popular solution to this problem is to hand over your Switzerland payroll outsourcing setup and management to a specialist global PEO. At Horizons, we are dedicated to helping businesses expand into Switzerland as seamlessly as possible. We can take care of your payroll setup and management, whether you already have a legal entity in Switzerland or not.
Why choose the Horizons payroll solution?
If you have an entity
If your company already has a legal entity registered in Switzerland then we can help you with the next phase of your expansion. Our team will set up and manage your payroll, as well as any associated HR and compliance work to help you focus on the important job of expanding your business in Switzerland.
If you don’t have an entity
If you don’t yet have a registered entity in Switzerland, then we can provide a more comprehensive service option to get you up and running in the country. We can offer the use of our subsidiary in Switzerland to act as employer of record for your hires so you don’t have to establish a legal entity yourself, saving you time.
Additionally, we will set up and run your Switzerland payroll, handle any HR, compliance, and take care of all other associated work to ensure you can expand seamlessly into Switzerland.
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Switzerland payroll guide
What are the withholdings and tax regulations in Switzerland?
Switzerland operates a progressive income tax system, with rates ranging from 0% to 11.5%. There is also a municipal tax charged by each canton that varies depending on location.
National-level corporation tax in Switzerland is set at approximately 8%, and each canton has its own local rate.
Employee entitlements and terminations in Switzerland
- Up to one year of employment = One month of notice
- Between two and nine years = Two months of notice
- Ten years or more = Three months of notice
The notice period is a minimum of seven days for employees in their probation period.
Swiss law does not require employers to pay severance, but some may choose to offer it as part of a specific employment contract.
How to establish Switzerland payroll outsourcing
Setting up a payroll in Switzerland can be a complicated process, and you may need to deal with language barriers, cultural differences, and regulations which can vary depending on location. You will need to first register an entity in Switzerland, then register with the appropriate tax authorities, and follow various other administrative protocols.
These initial processes can take weeks or months to finish, which could significantly slow your expansion progress.
Horizons can help you to avoid this lengthy and complicated process, providing a full suite of payroll setup and management outsourcing services for Switzerland. Our experts will handle your Swiss benefits, expenses, tax, compliance, HR, and more. We can also provide our Swiss subsidiary to work as your employer of record if you don’t have an established entity in the country. Outsourcing to Horizons can simplify your entire payroll and hiring process, fast-tracking your expansion into Switzerland.
Manage payroll in Switzerland
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.