FAQ Archive

past frequently asked questions

Here you will find past Frequently Asked Questions (FAQs). The content is no longer updated and may therefore contain outdated information.



Short-time work COVID-19

No report has been set up for the accounting of underemployment due to COVID-19. We do not recommend using the standard report being part of the Plus module.
We recommend generating an A4Q wage type list for each accounting period. The filters can be set to ALV wage; Provision for 13th monthly wage and the recorded reduced working hours. Amounts are to be evaluated as values; hours are to be evaluated as quantity. Further processing must then be carried out manually in Excel.
Daily allowances for underemployment due to COVID-19 are processed exclusively in financial accounting. The simplified accounting procedure does not show daily allowance per employee. Entry per employee is not necessary since no social insurance bases need to be corrected.
Supplement to the standard Manual on 13th monthly wage for processing 13th monthly wages with short-time work.

Legal or collective employment contract bases are decisive. We cannot advise on the applicable basis nor assist with the execution. Obligations to pay contributions to individual social security or taxes are not discussed below.

For the sake of clarity, only the processing of the 13th monthly wage is described. The statements below apply accordingly to any 14th monthly wage.

Wage types contain various settings that are decisive for the 13th monthly wage. It is important that neither of these two settings should be active. Either you choose Rate incl. 13th/14th monthly wage (in the General tab) or Portion of the 13th monthly wage (in the Obligations tab).

  • Annual wage should be the basis for social security (e.g., annual wage agreement with payment in 13 parts)
    • Paying out uncut, full 13th month wage:
      • Portion of the 13th monthly wage (tab Obligations):
        Do not activate for (KAE) reducing wage types when calculating or paying 13th monthly wage.
        It is irrelevant whether it was activated or not during the previous payroll processing of (KAE) reducing wage types. It would only lead to discrepancies between provision amount and the amount paid.
      • Rate incl. 13th/14th monthly wage (tab General)
        Should not have been activated during payroll processing carried out using (KAE-) reducing wage types. Otherwise, the reduction of the portion of the 13th monthly wage would have already taken place and would now have to be corrected manually.
    • Base for social security / taxes 100%; payment reduced to 80%:
      • During the previous payroll processing with wage reduction on the basis of KAE:
        Rate incl. 13th/14th monthly wage (tab General) was activated for (KAE) reducing wage types:
        The reduction in the portion of the 13th monthly wage has already taken place with wage deduction. The full 13th monthly wage can now be settled.
      • If Rate incl. 13th/14th MW (tab General) was not activated during the previous payroll processing with wage reduction on the basis of KAE, manual correction is now required:
        • 2 new wage types, 1x with obligations for social security and taxes, 1x without obligations Setup with subsequent wage type is possible (similar to daily allowance types with continued wage payment, account assignment like for 13th month wage)
        • Evaluation of the settled (KAE) reducing wage types
        • Report the amount for the two wage types (1x positive, 1x negative) so that social security contributions / taxes are settled, but no payment is made
        • Portion of the 13th MW (tab Obligations) for (KAE) reducing wage types is activated -> Reduction for calculation / payment
  • Base 80%; payment 80%:
    • Portion of the 13th monthly wage (tab Obligations) is activated for (KAE) reducing wage types:
      It is irrelevant whether it was activated or not during the previous payroll processing of (KAE) reducing wage types. It would only lead to discrepancies between provision amount and the amount paid.
According to the official guidelines on filling out wage statements, partial unemployment benefit is generally listed in Section 7 «Other benefits».

Unemployment insurance fund benefits: All unemployment insurance fund (ALV) benefits and other loss of earnings insurances paid by the employer (e.g., ALV short-time work and bad weather compensation as well as subsidies) are to be specified;
Point 34

Wage statement (admin.ch)

However, this regulation originates from the time when short-time work compensation was applied to and billed for each individual employee. This way, the amount per employee could be precisely defined and correctly shown in the wage statement.

In the current phase, a shortened, summary application and compensation procedure is used for short-time work if it is related to measures taken to contain COVID-19. In this case, short-time work compensation is applied to and paid for company departments or the whole company. It is therefore impossible to precisely break down the compensation per employee.

However, various cantonal tax authorities require that, on the one hand, the amounts per employee be listed in Section 7 and, on the other hand, the number of short-time work days be recorded in Section 15, «Comments». Short-time work compensation received should be distributed among employees as a percentage in Section 7 in proportion to the lost wages, and the difference should be compensated for in Section 1 of the wage statement.

From our point of view, this approach leads to unequal treatment of taxpayers, since it is impossible to make a correct breakdown due to the summary application process. It is imperative to check the correct procedure for you with your tax authority. We recommend including the comment in section 15 of the wage statement as follows:

Number of short-time work days: 15

The continued payment of wages is recorded in Section 1.

You can enter comments either in the employees’ personnel card before the last pay process or in columns «Comments» and «Comments 2» in the pay process list after the pay process. The last pay process of the respective year is decisive for the wage statement.

Important: This procedure has not been agreed on with the cantonal or federal tax administration. In any case, clarify the situation with your contact person at the respective cantonal tax administration. SwissSalary Ltd. accepts no liability in any case.