The Federal Tax Administration has written a circular no. 206 for the withholding tax rates 2024 and published it on 16.10.2023 (in German, French or Italian).
So what is the background?
The Federal Tax Administration (FTA) prepares and publishes its calculations in accordance with the federal taxes. Then the cantons have time to calculate and publish their rates including the federal tax requirements. The withholding tax rates include both federal and cantonal (and communal) taxes. The details of the federal tax deductions taken into account in the withholding taxes are compiled in the Circular Enclosure 2 . The tariff codes R, S, T and U are listed for the first time.
Due to the adjustments as a result of cold progression and the increase of the median value (tariff code C for two-earner couples according to enclosure 3) from CHF 5’675 to CHF 5’725, all cantons must calculate new tariffs. In addition, the deduction for supplementary unemployment insurance (ALVII) (value above the maximum for ALVI) is no longer taken into account.
What does this all mean for the companies?
- Consideration / import of the new withholding tax rates 2024 for Payroll before the January run 2024
- Adjustment of the part-time extrapolation cases with rate determination to the median value1)
Depending on the payroll software programme, the change can be made in one place at company or installation level. Other solutions provide for the recording of the value at employee level. In any case, it is worth taking a good look at these constellations in order to continue to make the withholding tax calculations correctly in January 2024.
- Various adjustments in connection with the new cross-border commuter agreement with Italy for employees with place of work / company headquarters in the cantons of Graubünden, Ticino and Valais. I refer to the blog about the new cross-border commuter agreement https://www.zulaufgmbh.ch/en/the-new-cross-border-commuter-agreement-between-switzerland-and-italy-has-entered-into-force-on-17-7-2023/
1) Excerpt from the Circular letter No. 45, Chapter 6.4, 7th paragraph: If the workload of a gainful activity cannot be determined (e.g. for a lump-sum compensated part-time caretaker position), the debtor of the taxable benefit may offset the amount used as a basis for calculating the rate-determining income in the relevant tax year for tariff code C. The amount is published annually by the competent tax authorities together with the other calculation bases. This amount is published annually by the competent tax authorities together with the other bases for calculation (cf. art. 85 para. 2 DBG). – This is the most frequent case. Other constellations in the area of irregular, i.e. non-monthly, compensation may also lead to a rate determination of the median value.
Various changes for 1.1.2024 have already been published, others will become known in the coming weeks. We will cover the most important topics for payroll in the update seminar on 08.12.2023 from 9.00 to 10.30 hrs.
Link to details and registration under: https://www.zulaufgmbh.ch/en/kurse/news-for-employers-at-the-turn-of-2023-2024/
You can find the other webinars before the end of the year such as cross-border commuters Italy 2024, AHV21 adjustments for companies etc. in German in the overview: https://www.zulaufgmbh.ch/veranstaltungen-workshops/