news & insights
back to all news
Swiss Payroll News 2
11 December 2023

navigating the future of Swiss payroll: end of year insights 2023

In the realm of Swiss business, the management of payroll is a vital and ever-evolving facet. As we come to the end of 2023, we bring you the latest intelligence on Swiss payroll to help you chart a course for success. At Arago, we’re more than just experts; we’re your strategic partners. Let’s delve into the transformative developments on the horizon.

embracing the AHV 21 reform: streamlining social insurance

The landscape of Swiss payroll is poised for significant transformation. Commencing January 1, 2024, employees will be empowered with the ability to waive the pensioner exemption amount at the “reference age,” a pivotal change driven by the “Stabilization of AHV (AHV 21)” reform.

In response, SAP is orchestrating adjustments in master data, payroll processes, and evaluations, including the AHV wage statement on paper and via ELM. Notably, for CE payroll, a uniform selection option for all contracts is in the works, likely materializing through the introduction of a new checkbox in infotype 0036.

Additionally, the reference age for women is set to incrementally rise from the current 64 to 65 between 2025 and 2028. SAP is diligently working to accommodate this change by introducing precise adjustments in view V_T5CR0, allowing for definition down to the exact month, a significant enhancement from the previous yearly granularity.

These transformations are integral for compliance and efficient payroll administration, and Arago is your dedicated partner to guide you through this transition seamlessly.

Q4 Swiss Payroll 1
strategic changes in cantons

withholding tax shifts: navigating new tax codes

Effective January 1, 2024, the cantons of Grisons, Ticino, and Valais will exclusively utilize additional pay scale codes R, S, T, U, and V for cross-border employees in Italy. This realignment follows the guidelines set by the Swiss tax administration (‘D_DVS Nr. 0005 / 06.06 as of 2024’). For businesses, this necessitates customizations, and SAP Note 3371882 serves as your compass to navigate the intricacies of importing withholding tax scales.

Q4 Swiss Payroll 2
streamlined wage notification

ELM 5.0: enhancing data efficiency

SAP is gearing up to support ELM 5.0, effective from January 1, 2024 (refer to SAP Note 3025541). While ELM 4.0 will technically remain functional, it’s important to note that the distributor’s receiving capabilities may be deactivated. This, in turn, could prompt businesses to transition to ELM 5.0, ensuring a smoother and more efficient data handling process.

Q4 Swiss Payroll 3
critical transition timeline

key dates to pencil in

As we set our sights on ELM version 5.0, mark these key dates:

  • December 31, 2024: The objective is clear – ensure all ERP systems are ELM 5.0 certified. Any extensions to ELM 4.0 certificates will cease after this date.
  • December 31, 2025: The final date for transmitting ELM 4.0 withholding tax statements.
  • June 30, 2026: The last opportunity for ELM 4.0 transmissions in all other areas.

stay informed for success

For in-depth information and resources, refer to the following sources:

Expert Guidance: Your Strategic Partner

At Arago, we understand that these transitions are not just about compliance but also about leveraging opportunities. Our team of experts is poised to provide the guidance and support you need to make these adaptations seamlessly, optimizing your payroll processes along the way.

Q4 Swiss Payroll 4