Managing Social Insurance for Switzerland

This chapter provides an overview of Swiss social insurance, lists common elements, and discusses how to:

• View social insurance data.

• Define insurance providers.

• Define company social insurance contributions.

• Manage additional insurance.

• Report on social insurance.

• Generate and manage XML by dashboard.

Understanding Swiss Social Insurance

Before setting up and processing social insurance contributions, you should understand the terms and procedures Global Payroll for Switzerland uses for social insurance.

Common Social Insurance Terms

Here's a list of common abbreviations used on the social insurance components in Global Payroll for Switzerland.

Social Insurance Overview

Contributory membership in national social insurance funds (such as AHV, IV, and EO) is mandatory for employers. You deduct social insurance contributions for those domestic and foreign employees with mandatory insurance coverage and transfer them to compensation funds in accordance with statutory requirements.

You specify the applicable prorated percentage rates for both the employer and the employee. When a new employee is hired, record his or her Social Insurance number.

At the end of prescribed pay periods, calculate the contribution amount, if the insurance provider hasn't already calculated it. Then transfer the amount to the respective provider.

The same procedure applies to unemployment insurance (ALV). For both types of insurance, deduct the employees' insurance percentage rate from their pay.

At the end of the year, total the paid earnings and then submit a complete list of employees with mandatory insurance coverage to the insurance providers. This list must include every employee's AHV number, total gross earnings, and the length of employment with the company.

If your company has a statutory requirement to make payments to a family allowance agency (FAK), transfer, depending on the canton, family allowances to employees along with their pay. Transfer the agreed percentage of the earnings subject to AHV to the FAK.

Deduct pension contributions in accordance with federal statutes governing pension funds (BVG) and, in some cases, transfer these contributions to a supplementary pension fund.

In accordance with federal statutes governing accident insurance (UVG), you must insure your employees against accidents with the SUVA or another accident insurance provider. Calculate the mandatory insurance contributions and transfer them to the insurance provider. If your company pays all or part of an employee's non-employer liability insurance premiums (NBU premiums), calculate no employee deductions, or only prorated deductions, depending on the program.

When you perform the respective calculations for these procedures, you create the prescribed reports and route them to the employee or to the responsible authorities.

You can enter tax and social insurance data after the following information is set up:

• System tables and social insurance tables.

• FAK data and percentages.

• Source Tax tables and data.

• Child Allowance table.

• Municipality table.

• Insurance providers.

• Scale codes for continued payments.

Default Hierarchy for Social Insurance

This section explains the override options for social insurance. Global Payroll for Switzerland enables you to view the percentage and/or status of AHV/ALV, UV, PK, and FAK at three levels:

• First level—the social insurance system. The PeopleSoft system delivers a social insurance setup, which you can't edit because it's statutory.

• Second level—the company. You must set this level when you implement Global Payroll for Switzerland. It's an editable field that you can override.

• Third level—the employee. This is also editable.

You can override some values, such as eligibility status, at company or employee level. The following table displays whether information is available at each level.

Note. An X indicates that information is available at that level, and a dash (--) means that information is not available.

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Switzerland. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

See Also

Understanding How to View Delivered Elements

Common Elements Used with Social Insurance

Viewing Social Insurance Data

This section discusses how to:

• View social insurance system data.

• View social insurance details.

Pages Used to View Social Insurance Data

Viewing Social Insurance System Data

Access the Social Insurance System page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Social Insurance CHE, Social Insurance System).

Note. The PeopleSoft system delivers and maintains the data on the display-only Social Insurance component.

Retirement Age Female	Displays the age at which women may retire and therefore draw a pension.
Retirement Age Male	Displays the age at which men may retire and therefore draw a pension.
Enrollment Age	Displays the age from which retirement and survivors' pension insurance (AHV) contributions are paid.
Exemption Amount	Displays the monthly amount below which no AHV contributions are required for pensioners.
EE Soli SH (employee solidarity, canton Schaffhausen)	Displays the employee contribution as a percentage for solidarity tax, which is deducted only in the canton of Schaffhausen.
Total Contrib Soli Ct SH (total contributions solidarity, canton Schaffhausen)	Displays the combined employee and employer contributions as a percentage for solidarity tax, which is deducted only in the canton of Schaffhausen.

Viewing Social Insurance Details

Access the Social Insurance Details page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Social Insurance CHE, Social Insurance Details).

Statutory Limit ALV1	Displays the statutory limit of insurance for ALV.
Statutory Limit ALV2	Displays the statutory limit of insurance for ALVZ.
ALV Status	To set the default value for a company here, you should override it at the company level.
Asylum Contribution	Displays the deduction for the asylum fund. Asylum contributions are basically source taxes for asylum seekers, expressed as a percentage of gross earnings. This deduction must be made every month and deposited in an account as ordered by the Federal Ministry for Refugees.
Minimum Work Hours per Week	Displays the lowest number of working hours per week for liability insurance.
Statutory Limit UV (statutory limit accident insurance)	Displays the maximum monthly gross salary that can be insured.

Defining Insurance Providers

To define insurance providers, use the Providers CHE (GPCH_SI_PROVDR) component.

Define the names of insurance providers and their associated provider codes on the Insurance Providers component, which consists of two pages: Insurance Providers and Contributions Rates. This section discusses how to:

• Set up insurance providers.

• Set up contribution rates.

Pages Used to Define Insurance Providers

Setting Up Insurance Providers

Access the Providers page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Providers CHE, Providers).

Note. This setup is required. It is your responsibility to complete data entry according to the swissdec certification requirements for sending files.

Setting Up Contribution Rates

Access the Contribution Rates page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Providers CHE, Contribution Rates).

Employer Contribution BU % (employer contribution percentage for BU)	Enter the employer's contribution for employer liability insurance (BU).
Total Contribution NBU % (total contribution percentage for NBU)	Enter the total contributions for accident insurance not covered by employer liability (NBU) as a percentage.
Employee Contribution NBU	If the contribution is shared between employer and employee, enter the percent the employer would get paid by the employee. For example, if both pay half, you would enter 1.00, 0.7 and 0.55 in the three columns consecutively.

Defining Company Social Insurance Contributions

This section provides an overview on Company SI Contributions and Legal Daily Payment Calculations and discusses how to:

• Set up social insurance rates.

• Enter provider information.

• Enter tax (LAW) data.

• Enter pension fund (PK) data.

• Enter 2006 tax (LAW) information.

• Enter tax (LAW) message information.

• Enter payslip information.

• Entering sender details.

• View and modify social insurance data.

Understanding Company SI Contributions

Use the Company SI Contributions CHE (GPCH_SI_COMPANY) component to define company social insurance contributions and data specific to your company. This component enables you to manage AHV and ALV data as well as accident insurance and daily accident benefits insurance.

Note. You must maintain both Company SI 1 and Company SI 2 tables.

Implementing Legal Daily Payment Calculations

PeopleSoft supports daily payments for unemployment insurance, accident insurance, child allowance, and source tax. To accommodate these payments, PeopleSoft added the Daily Limit and Avg Work Days fields to the Rates page within the Swiss Company SI Contribution component.

In addition to entering the appropriate information in the Daily Limit and Avg Work Days fields, you must change an employee's compensation frequency to (D) Daily on the Compensation page (select Workforce Administration, Job Information, Job Data, Compensation).

Pages Used to Define Company Social Insurance Contributions

Setting Up Social Insurance Rates

Access the Rates page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, Rates).

Contract Type	Select the type of contract associated with the company social insurance contributions.
Weekly Hours	Enter the number of hours employees generally work per week.
Daily Limit	Enter the ALV and UVG limit, which matches the number of average working days. For example, if the average working days for social insurance is 30, the daily limit should be 350; otherwise the amount needs to be agreed to by the provider.
Weekly Lessons	Enter the number of lessons. For some employees working time is counted in lessons (for example: teachers). In this case, enter the number of weekly lessons that employees usually work. Weekly lessons are entered as an integer (for example, .00).
Avg Work Days	Enter the average number of days an individual works in a week.
AHV Status	Select one of the these values to indicate the status of the retirement and survivors' pension insurance being offered by the organization: 0 NONE: No contribution. 1 ER/EE: Employer/employee distribution. 2 ER: Employer pays all.
AHV Admin Cost Contribution (AHV administration cost contribution)	Enter the administrative clearing costs of the AHV agency, expressed as a percentage.
Employee Contribution AHV	Displays the percentage the employee contributes to retirement and survivors' pension insurance.
Total Contribution AHV	Displays the combined percentage the employee and employer contributes to retirement and survivors' pension insurance.
ALV Status	Select one of the these values to indicate the status of the unemployment insurance being offered by the organization: 0 NONE: No contribution. 1 ER/EE: Employer/employee distribution. 2 ER: Employer pays all.
Employee Contribution ALV1	Displays the percentage the employee contributes to (ALV) unemployment insurance.
Total Contribution ALV1	Displays the combined percentage the employee and employers contributes to (ALV) unemployment insurance.
Employee Contribution ALV2	Displays the percentage the employee contributes to (ALVZ) unemployment insurance.
Total Contribution ALV2	Displays the combined percentage the employee and employers contributes to (ALVZ) unemployment insurance.
Default Value	Click to import the values defined at installation from the Social Insurance system tables.
Solidarity Status	Select the Solidarity tax distribution for the company. Values are: and 0 NONE: No contribution. 1 ER/EE: Employer/employee distribution. 2 ER: Employer pays all.
FAK Default PCT (Familienausgleichskasse default percentage)	Select this check box if you want the system to use the default percentage for employer contribution to fund family benefits.
AHV Exempt YTD (Alters- und Hinterlassenenversicherung exempt year-to-date)	Select this check box if you want the system to exempt retirement and survivors' pension insurance for the year-to-date period.

Note. You can override the ALV and AHV status on the Maintain Social Ins Data CHE page.

Entering Provider Information

Access the Provider page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, Provider).

Subject to FAK (subject to Familienausgleichskasse)	Select either Yes or No to indicate if the provider is required to make contributions to fund family benefits.
Provider Type	Select the type of insurance being offered by provider you are entering (for example AHV-AVS, BFS-OFS, FAK-CAF, and so on).
Provider and Description	Select the name of the provider offering the insurance. The name of the provider appears in the Description field.
Insurance ID	Enter the insurance ID of the provider.
Sub ID / Contract	Enter the sub ID or contract number of the provider.
Primary Provider	Select this check box if the provider is primary for the company.
All Cantons	Select this check box if all cantons are covered by the provider.
Canton	Select the specific canton that the provider is covering if they are not covering all cantons.

Entering Tax (LAW) Data

Access the LAW Data page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, LAW Data).

Note. This page was used for the old tax statement which expired in 2006. Data entered on this page is no longer supported. Use the LAW 2006 page to enter data.

Entering Pension Fund (PK) Data

Access the PK Data page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, PK Data).

Provider Information

Download File Options

Entering 2006 Tax (LAW) Information

Access the LAW 2006 page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, LAW 2006).

UID (UnternehmensIdentifikation)	The company ID assigned by the statistics office
BUR (Betriebs- und Unternehmensregisternumer)	The location ID assigned by the statistics office.
Free Transportation F	In the tax statement form there is an F check box. This indicates if the person benefits for free transportation. On this page the system displays the default.
Canteen G	In the tax statement form there is a G check box. This indicates if the person receives canteen benefits, with a portion paid by the employer, or if the person receives a tax free meal allowance. On this page the system displays the default.
Expenses 13.1.1	The system displays the default, whether that field on tax statement applies or not.
Eff. expenses expat 13.1.2	The system displays the default, whether that field on tax statement applies or not.

Entering Tax (LAW) Message Information

Access the LAW Messages page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, LAW Messages).

Note. Use this page to define messages that are valid for specific cantons for the company. During message generation the system applies additional logic to decide whether this is a valid message for the dedicated employee. The system, however, only considers messages and cantons as declared here.

See Setting Up Tax Statements.

Entering Payslip Information

Access the Payslip page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, Payslip).

PeopleSoft enables you to print payslips for monthly salaries and bonuses. Because the format of payslips varies greatly from one organization to another, we provide one format as an example. We also provide a template that enables you to customize the format to accommodate the payslip style your organization uses. You can also print a message on the payslip to an individual payee or groups of payees.

See Assigning and Viewing Print Classes.

Entering Sender Details

Access the Sender Details page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, Sender Details).

Language Code	Select the language in which you want the information sent.
Report Name	Select the report you are sending.
Sub Report	Select the name of the sub report you are sending. This field is optional.
Description	Enter a description for the report.
Address Line 1, Address Line 2, Address Line 3, and Address Line 4	Use these fields to enter address information for the company that is sending the information.
City, Postal Code, Post Box, Telephone, Email ID, and Signature	Use these fields to enter identifying information for the company that is sending the information.

Viewing and Modifying Social Insurance Data

Access the Maintain Social Ins Data CHE page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Maintain Social Ins Data CHE, Maintain Social Ins Data CHE).

End Date	Enter an end date if you want to display data for a restricted period of time.
Total Contr NBU (total contributions NBU)	Displays the total contributions for accident insurance not covered by employer liability (NBU) as a percentage.
ER Contr BU (employer contributions BU)	Displays the employer's contribution for employer liability insurance (BU).
Provider	Select the code for the accident insurance provider. All insurance providers are represented here.
Default Value	Click to use company-wide values. The default values are defined at the company and social insurance setup level.

Managing Additional Insurance

To manage additional insurance, use the Addtl Insurance Provider CHE (GPCH_SI_ADDITIONAL_GBL) component.

This section discusses how to:

• Set up additional insurance providers.

• Enter additional insurance data.

• Enter accident insurance override data.

Note. Some companies may provide employees with additional insurance packages, depending on their position in the company or their salary grade. For example, some employees may be eligible for additional health insurance in addition to the mandatory insurance packages that are available. Global Payroll for Switzerland enables you to create voluntary combinations of insurance packages. These are presented to employees, who choose one from the selections. You can use Global Payroll's functionality as a basis for additional calculations and other features that you add when you install Global Payroll for Switzerland. You create the insurance packages on the Addtl Insurance Provider CHE page, and assign them to an employee on the Additional Insurance Data page.

Pages Used to Manage Additional Insurance

Setting Up Additional Insurance Providers

Access the Addtl Insurance Provider CHE page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Addtl Insurance Provider CHE, Addtl Insurance Provider CHE).

Insurance Type and Premium Rates

Premium Details

Entering Additional Insurance Data

Access the Additional Insurance Data page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Add Other Insurances Data CHE, Additional Insurance Data).

Annual Rate	Displays the annual rate that applies to an employee.
Provider Type	Select the provider type. Valid values are FZ_UVG, KTGV, KV, and UV.

Entering Accident Insurance Override Data

Access the Accident Insurance Override page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Add Other Insurances Data CHE, Accident Insurance Override).

Note. In cases where employees have multiple contracts, you may want to assign various accident insurance providers per contract (for example SUVA and HELSANA). In a normal situation you would assign the legal attributes of the insurer (source tax code, children, social insurance, and garnishments) on the legal level. In this situation, however, you would assign accident insurance on the job level (employee record).

If you assign various accident insurance providers for an employee with multiple contracts at the company level, payee level, and payee override level (accident insurance), the providers at the payee override level are considered the highest override level for SI data calculation. The system considers the payee level the next highest level for overriding SI data. The company level is considered the lowest. This system of overriding insurance data supports organizations that have employees with multiple employment contracts and insurance providers.

Reporting on Social Insurance

This section discusses how to:

• Run the Element Contribution (GPCHAL07) report.

• Run the Company SI Contribution (GPCHSI06) report.

• Run the Payroll Register (GPCHTX04) report.

• Define required information for the Payroll Register (GPCHTX04) report

• Run the Pay Balance Employee/Company (GPCHTX06) report

• Run the Personal Statement (GPCHSI03) report.

The Element Contribution report defines all contributions and deductions, and the SI Company Setup report lists all employee contributions for AHV, ALV, ALVZ, and UV and other company setting.

Pages Used to Report on Social Insurance

Running the Element Contribution (GPCHAL07) Report

Access the Element Contribution List CHE page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Reports, Element Contribution List CHE, Element Contribution List CHE).

You can run the report in 2 modes:

• Overview

  Based on the print class and accumulators that you select on the run control page, the Overview mode displays a list of elements vertically and the list of accumulators horizontally.

• Detail

  If running in Detail mode, the system displays one page for each earning and deduction that was selected. The report provides information about the fixed set of accumulators (CH_AH_02, ~UV_02, ~BV_02, ~TX_02, ~NE_02, ~00_80, ~00_50, ~00_52, ~00_54, ~NE_02 ) 1), accumulators that were specified on the run control page, and accumulators identified by the entries in the Category field (LAW or LA6 / BS for release 8.9 and up)

Assignment per column

Assignment per line

Running the Company SI Contribution (GPCHSI06) Report

Access the Company SI Contrib Rpt CHE page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contrib Rpt CHE, Company SI Contrib Rpt CHE)

From Date and To Date	Enter the dates for which you want to run the report. Note. If there is any change between the From Date and To Date, the report creates a version for each period of data.
Company	Select the company for which you want to view payroll relevant attributes.

Running the Payroll Register (GPCHTX04) Report

Access the Payr. Reg. Options (payroll register options) page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Reports, Payroll Results Register CHE, Payr. Reg. Options).

The run control for the payroll register is a two-page component, consisting of the Report Options page and the Pay Element View page. In addition to gross pay, the columns of the report might provide information about base amounts (calculation bases) for UV pay, UV base, AHV gross, AHV base, amount not subject to AHV, ALV pay and ALVZ pay, as well as the resulting payment. You define the required information on the Payroll Register Element View page.

Defining Required Information for the Payroll Register (GPCHTX04) Report

Access the Payr. R. Elem. View (payroll register elements view) page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Reports, Payroll Results Register CHE, Payr. R. Elem. View).

Element Name	Select the year-to-date accumulator to report.
Override Indicator	Select to override the description of the selected element. You can display up to ten columns in your report.
Element Heading	Enter a new heading name (a new description of the element) if you select the Override Indicator for an element.
Sequence	Enter a sequence number for the selected element's column. If you want to have the AHV/ALV contributions as the second column in your report, for example, enter sequence number 2.

Running the Pay Balance Employee/Company (GPCHTX06) Report

Access the Pay Balance CHE page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Reports, Pay Balance CHE, Pay Balance CHE).

This report:

• Summarizes employee contributions, which are grouped and sorted according to the specified calendar month.

• Summarizes employee data for the employer on the final page.

• Can be printed in two versions, one that shows all retro pay in detail and one that shows only accumulated amounts, including retro.

Running the Personal Statement (GPCHSI03) Report

Access the Personal Statement CHE page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Reports, Personal Statement CHE, Personal Statement CHE).

Language

The Personal Statement supports the these languages: English, French, German and Italian. If no language is selected, the statement is printed in the language of the employee. For languages that are not supported, the system uses the base language.

Report Parameters