Tax at Source additional payment after resignation without recalculation

Payments made after the termination of employment relationship are to be deducted at source as follows:

- Payments that became due at the time of termination, but to be paid to the person subject to the income tax later (for example, subsequently paid holiday compensation, portion of the 13th Payday, etc.), are to be summed with the IT wage of the last working month; the withholding tax is to be calculated based on this total amount (this calculation method was implemented in SwissSalary from the beginning).

- On the other hand, for payments that become due only after the termination of employment relationship (for example, subsequently determined bonus payments), the income tax is to be calculated like for an (additional) monthly wage (this has been adjusted now).

- The calculation type may differ based on different solutions in cantons.

Source: Excerpt from the Guidelines for Wage Data Processing - swissdec (Version 4.0) - page 146

As a rule, back payments after resignation are summed with the last wage for the last working month subject to income tax. Income tax is then calculated based on the total amount. This process has always been automated in SwissSalary. For all other payments like bonus payments that were determined only after termination, a new withholding tax period can be opened by checking the “Back payment after payout without recalculation” box. This payment is accounted for as an additional wage.

NOTE:

Back payments can only be accounted for after one of these two procedures. A mixture of procedures is not possible and is not envisaged.