Changes in salary management as of January 1, 2016

December 2015

We cannot say we were excited, but many changes in administration salaries are expected for the coming year. We have prepared a summary of different changes and adjustments and offer procedures to properly perform each operation in ProConcept ERP.

AVS / APG / AI

Decreased Joint Contribution

The contribution rate for the allocation of loss passes gain of 0.5% to 0.45%, setting the rate AVS / AI / APG to 5.125% since the latter is joint.

Therefore, it is appropriate to adjust the levels in your salary software.

Please note that this distribution involves the management of three decimal places and may need to change the salary wage type in your software.

Explanations

The Federal Council has decided to lower the contribution rate, which is again set in the regulation on allowances for loss of earnings for a period of five years (i.e., from early 2016 to the end of 2020).

The Fund reserves the APG - which also pays benefits to people serving in the military, the civil service, or civil protection - have fallen sharply in the years following the introduction of maternity insurance in July 2005. The Federal Council therefore faced provisionally until 2015 the contribution rate from 0.3 to 0.5% of salary from 1 January 2011 to ensure the liquidity and replenish the fund. Under the law, the fund's assets must not be lower than 50% of annual expenditure.

According to current projections, reserves should again reach 55% by the end of 2015. The financial position of the Fund APG therefore lowers the contribution rate to 0.45%, without the fund's holdings will fall below the legal minimum. The Federal Council therefore decided to lower the contribution rate.

The contribution rate is set once again for a period of five years (i.e., from 1 January 2016 to 31 December 2020). The Federal Council will reassess the situation before the end of this period, to take the necessary steps for the future.

ACCIDENT AND UNEMPLOYMENT

Increased Maximum Insured of 126,000 to 148'200.

From 1 January 2016, the unemployment insurance ceiling, depending on compulsory accident insurance, will also be increased to CHF 148'200 instead of CHF 126'000.

Naturally, you should add this new value to the various ceilings and floors for compulsory accident insurance, and additional UI software in your wages.

Explanations

The Federal Council raised the maximum amount of the insured in the accident insurance valid from 1 January 2016, which ensures that the vast majority of insured workers will be fully covered in case of accident. It also has implications for unemployment insurance (AC) and disability insurance (DI).

The maximum amount of the insured income determines not only premiums but also the benefits of compulsory accident insurance. It is set by the Federal Council, to ensure that, as a rule, at least 92% but not more than 96% of insured workers are covered for the full gain.

The last adjustment of the maximum insured earnings at January 1, 2008. It was adjusted upwards because of wage developments. The Federal Council decided that it would increase from 126,000 to 148'200 francs from 1 January 2016. This increase is in the average of the previous adaptations. It will allow 95% assured of full coverage in case of accident.

The maximum amount of the insured in the compulsory accident insurance influences other social insurance. Indeed, it also determines contributions and UI benefits and the maximum amount of benefits paid by the AI. The rate currently set for premiums and contributions remain unchanged in the new regulation. They also apply against by salaries exceeding 126,000 francs.

WITHHOLDING TAX

Changes Scales

As in the past, the rates of tax at source, defined by the cantons, have changed, and therefore, you need to update these in your salary software.

The Federal Tax Administration website provides various cantonal files that have been updated as of year end.

www.estv.admin.ch

SALARY CERTIFICATES AND ANNUAL DECLARATIONS

As usual, the end of the year brought changes to salary certificates and other statements around social insurance.

In the system, you should check the various data, such as the activity rate of wages and the remarks certificate.

Also, if you have created new genres wages during the year, we recommend that you carry out the verification of the list of wage types to ensure that they appear in the right place in the salary certificate.