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The mandate of Payroll Check-up in a company with more than 100 employees, active internationally with in-house salary management, consisted in the detailed review of salaries for a full year.
The check-up revealed several errors mainly due to a lack of in-house expertise to handle specific and complex cases.
The proposed corrective actions addressed these situations before it was no longer possible to do so (before the departure of employees and before an OASI or tax check).
The proposed corrective actions have saved more than 10,000 Swiss francs. Some examples:
- Many employees had reached retirement age but were still working.
The contributions were not correctly calculated for the amounts to be submitted to the AHV and unemployment insurance.
The corrections saved about 3% of the annual payroll of these employees, representing several thousand CHF.
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A married employee subject to tax at source had left the matrimonial home, but the separation by judicial decision had not yet been pronounced.
The employee processing the wages mistakenly thought that only the “official” separation pronounced by the court was to be considered to determine the tax scale (married scale -> single person).
In the case where a person leaves the marital home, we speak of “de facto” separation, the so-called “de corps” separation corresponds to the separation according to judicial decision and with patrimonial division.
In reality, the “de facto” separation must be immediately communicated by the employee to his employer and the latter must take it into account when determining the withholding tax to be withheld from the employee. Since the employee is still an employee, it was possible to request a correction from the tax authorities and correct the amounts withheld from the employee. Several thousand francs were thus correctly charged to the employee. This correction prevented the company from being retroactively liable to the tax authorities and running the risk of not being able to deduct these amounts to the employee if the employee had left the company in the meantime.
- Optimization proposals and recommendations have also resulted in savings and significant efficiency improvements.
Optimization proposals and recommendations have also resulted in savings and significant efficiency improvements.
For example, loss of earnings insurance in the event of illness can be optimized by maintaining good salary coverage for employees while significantly reducing premiums by amending the policy to exclude certain non-recurring benefits.
Contributions to this insurance could be reduced for future years from about 15% to 30% according to the principal’s estimates, while maintaining a good coverage of employees’ periodic wages.