Freelancers are confronted with the issue of “pay” early on—what do they need to consider in order to pay themselves a salary? Since they are often not specialists in payroll and HR administration, they seek help from fiduciaries or payroll companies.
First, freelancers must choose a specific legal structure, because the term “freelancer” does not exist under Swiss law. A sole proprietorship must be approved by the AHV, and to establish a GmbH or AG, they must raise between CHF 20,000 and 100,000 in capital. In addition, they must purchase insurance (daily sickness benefits, accident insurance, pension fund), understand everything related to payroll, process AHV, child allowances, etc., and much more. Last but not least, they even lose their entitlement to unemployment benefits (ALV).
An obvious solution for many is a trustee. A trustee can handle payroll administration for companies (sole proprietorships, AGs, GmbHs), select and arrange insurance policies, and make premium payments; however, a trustee cannot handle payments in the event of illness or accident. The costs for a fiduciary are difficult to estimate and are billed based on the amount of work involved.
As Switzerland’s leading payroll and accounting portal, payroll+ offers a comprehensive, worry-free package for freelancers.
You don’t have to worry about anything else. Freelancers are automatically enrolled in payroll+’s daily sickness and accident insurance and BVG insurance, and payroll+ handles payroll processing and AHV reporting.
Employer Deductions:
- 5.275% AHV (Pillar 1, Old-Age and Survivors’ Insurance)
- 1.1% ALV (Unemployment Insurance)
- 0.30% AHV administrative fees (charged by the AHV to cover its processing costs)
- 1.4% FAK (Family Allowance Fund; all employers are required by law to contribute to it)
- 1.6% KTG (daily sickness benefit insurance starting on the 4th day or as specified in the collective bargaining agreement)
- SUVA Occupational Accident Insurance by Category (SUVA Office 0.325%, SUVA Trades 6.025%, Industrial and Service Occupations 1.325%)
Employee Deductions:
- 5.275% AHV (Pillar 1, Old-Age and Survivors’ Insurance)
- 1.1% ALV (Unemployment Insurance)
- 1.6% KTG (daily sickness benefit insurance starting on the 4th day or as specified in the collective bargaining agreement)
- SUVA Non-Occupational Accident Insurance by Category (SUVA Office 0.93%, SUVA Trades 2.36%, Industrial Occupations 1.60%, Service Occupations 2.04%)
With our unique pay calculator, you can calculate your pay at any time.