In Switzerland, the correct handling of the private portion of the use of a company vehicle is an important aspect of payroll. This article provides a detailed overview of the two common methods for calculating this private portion, including advantages and disadvantages, as well as precise examples using current social security rates.
Methods for Handling the Private Portion
The private portion of the vehicle is added to the gross salary and then deducted after the calculation of social security contributions. In the second method, the employee pays the private portion in full. These methods are crucial as they influence social security contributions and tax burden.
Variant 1: Addition to Gross Salary
This method involves adding the private portion to the gross salary, which increases the base for taxes and social security contributions. After these contributions are deducted, the private portion is deducted from the net salary.
Advantages:
- Non-cash benefit for the employee.
Disadvantages:
- Higher administrative effort due to additional calculations and deductions.
- The taxable income of the employee is higher.
Variant 2: Deduction
Here, the private portion is deducted after the net salary.
Advantages:
- Simpler and faster to process.
- Does not affect the height of the employee's taxable income.
Disadvantages:
- Higher burden for the employee.
Examples
Variant 1: Addition to Gross Salary
Monthly salary: 1000.00 CHF
Private car portion: 150.00 CHF
Gross salary: 1150.00 CHF
AHV/ALV deduction: 73.60 CHF
UVG deduction: 11.50 CHF
BVG deduction: 100.00 CHF
Net salary: 964.90 CHF
Private car portion: 150.00 CHF
Final payment: 814.90 CHF
Variant 2: Deduction
Monthly salary: 1000.00 CHF
Gross salary: 1000.00 CHF
AHV/ALV deduction: 64.00 CHF
UVG deduction: 10.00 CHF
BVG deduction: 100.00 CHF
Net salary: 826.00 CHF
Private car portion: 150.00 CHF
Final payment: 676.00 CHF
Conclusion
The choice of method for handling the private portion of the vehicle depends on several factors, including company policies and legal requirements. It is crucial for companies to understand the tax and social security implications of each method and ensure transparent and correct payroll processing.
