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What do I need to know about payroll accounting?

Basis of payroll administration:

Employer's obligation to record wages

  • "Employers must keep a written record of wages and other details for entry into the individual account..."

Social security contributions

  • Are due upon realization, i.e. at the time of wage payment

The task of payroll administration:

Billing / Duty of proof

Employer:

  • To tax authorities
  • To social insurance (OASI/ALV/DI/EO/FCF/AC/PP/AI)
  • To private insurers (AAI/DSP)
  • To trade unions (L-GAV, Parifonds, etc.)

Employee:

  • Tax authorities
  • Social insurance (OASI/non-employment contributions)
  • Creditors (leasing, mortgages, loans, etc.)

The aim of payroll administration:

  • Comprehensiveness of financial accounting (OR 957a /OR 958c)
  • Burdens of proof
  • Protection of employees ensuring that the correct salary is credited by the employer, the correct salary is credited to the IA account, and a correct pension is paid without cuts

Which terms do I need to know?

Term

Explanation

   

Definitive wage

All items subject to the OASI (DWG)

Point

Paragraph in the Decisive Wage Guidelines (DWG)

EPR

Electronic payroll reporting

DI

Disability insurance

EO

Income replacement

ALV

Unemployment insurance

NOA

Non-occupational accidents

PP

Occupational benefit plan (2nd pillar)

DSP

Daily sick pay

1st pillar

State provision (deductions OASI, EO, DI, etc.)

2nd pillar

Occupational benefit plan (deduction PP)

3rd pillar

individual provision (individual)

OASI

Old-age and survivors insurance (1st pillar)

IA

Individual account (OASI statement)

FCF

Compensation fund

WA

Work accident

AAI

Additional accident insurance

ADSP

Additional daily sick pay

APP

Additional occupational benefit plan

 

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