Innovations in the withholding tax procedure from 2014

As of January 1, 2014, there are several changes in the withholding tax procedure. In the withholding tax procedure, adjustments have been made to the tax rates and in the electronic payroll reporting process.

Withholding Tax Procedure

Starting next year, the relevant withholding tax data can be settled electronically in a uniform and standardized process through the salary standard-CH (ELM withholding tax). This reduces the effort and the risk of errors significantly. The settlements are to be made monthly. However, the withholding tax invoices will still be generated in paper form. The electronic billing procedure is voluntary. The settlement according to the previous system remains open to every employer.

New Rates

With the introduction of the ELM withholding tax, the withholding tax rates also need to be standardized. This requires adjustments. Therefore, from January 1, 2014, the same rates uniformly apply in all cantons. The withholding tax rates are classified into different rates (from rate A to rate P).

The new withholding tax rates apply to all employers, regardless of whether they carry out the billing electronically or not.