Viewing and Maintaining Source Tax Data

To view and maintain source tax data, use the FAK/SourceTax (Company) CHE (GPCH_TX_FAK_STAX) component.

This topic discusses how to view and maintain source tax data.

There are four steps to viewing and maintaining source tax data in Global Payroll for Switzerland.

  1. Upload and view / update municipality code information for each canton.

  2. Upload and view source tax data for each canton, to determine source tax rates that apply to foreign nationals in the individual Swiss canton.

  3. Enter source tax data for foreign residents in Switzerland.

  4. Update and view source tax percentage data, including withholding commission percentages.

Page Name

Definition Name

Usage

Load Files CHE Page

GPCH_LOAD_FILES

Load Postal/Municipality Codes.

Load Tax Rates.

Municipality Codes CHE Page

GPCH_TX_VILLAGE

View and update municipality codes and their descriptions for a selected canton. User uploads the Municipality Code table, but you can modify the data if necessary.

Source Tax CHE Page

GPCH_TX_SETUP

View source tax details such as source tax tariffs and basis, amounts and percentages. User uploads the Source Tax table, but you can modify the data if necessary.

Tax Data Page

GPCH_TX_DATA

Enter source tax data for a foreign employee.

FAK/SourceTax(System) CHE Page

GPCH_TX_FAK

View source tax details such as source tax tariffs and basis, amounts, and percentages.

FAK/SourceTax(Company) CHE Page

GPCH_TX_FAK_STAX

View and edit source tax settings such as source tax language and source tax report frequency.

Use the Load Files CHE page (GPCH_LOAD_FILES) to insert data into the Source Tax Rates table.

Navigation

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Framework > Processing > Load Files CHE

Image: Load Files CHE page

Load Files CHE page

Load Files CHE page

Field or Control

Definition
Download Source Tax

Link to legal site for tax rates download.
Upload File

Will open a popup to determine the source of your file.
View Uploaded File

Provides an overview of uploaded files.
Run

Triggers further processing for files that need further processing (Source Tax and Postal Codes).

When Source Tax file has been uploaded, the Run button will open the following subpage.

Image: Load Source Tax Rates CHE page

Load Source Tax Rates CHE page

Load Source Tax Rates CHE page

Source tax rates are maintained by Oracle. However, you can load these rates directly into your application. As the cantons sometimes publish the new rates later than you might want them, you can use this feature to retrieve the rates in time for your current payroll.

To manage the upload you need to download the files from the internet and unzip them into a directory where the application has access to the files (usually a directory on the same machine as the application server).

See Swiss Federal Tax Administration Website.

Field or Control

Definition
Year

Enter the year for which you need to upload the rates
Refresh Nbr Rows for this year

Click to display the number of rows that already exist in the database under the Nbr Rows column in the grid.
Insert into Source Tax Rates Table

Select if you want to update the final data; otherwise the process will only populate temp tables to allow a test run.
Prefix

This is always TARxx, where xx is the current year.
File extension

Always enter TXT as the file extension.
Directory

The directory from where you load the data.
Replace filename?

Click to populate filename entries in the Filename column in the grid.
Select

Select the cantons that you need to upload.
Canton

Displays a list of all 26 cantons with 2 character abbreviations.
Description

Displays the names of the 26 cantons.
Filename

The entries in this column are automatically created based on your previous entries.
Nbr of Rows

Displays the number of existing rows, if you clicked the Refresh Nbr Rows for this year button.

Use the Municipality Codes CHE page (GPCH_TX_VILLAGE) to view and update municipality codes and their descriptions for a selected canton.

Municipality Codes get loaded along with Postal Code, but you can modify the data if necessary.

Navigation

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Taxes > Municipality Codes CHE > Municipality Codes CHE

Warning! Postal Code load fills Municipality Codes. When modifying this data if necessary, you should carefully consider the impact of these changes.

Use the Source Tax CHE page (GPCH_TX_SETUP) to view source tax details such as source tax tariffs and basis, amounts and percentages.

Navigation

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Taxes > Source Tax CHE > Source Tax CHE

Image: Source Tax CHE page

Source Tax CHE page

Tariff

Field or Control

Definition
Withholding Tax Tariff

Displays the Withholding Tax Tariff code.
Read Data

Click to display details about the rates for source tax.

Rates

Field or Control

Definition
Gender

Since 2014, there are no separate rates for Male or Female. Thus you will always see ‘unknown’ here.
Low Gross

Displays the lower limit for the tax increment.
Tax Amount

Displays the amount of source tax that is deducted.
Tax % (tax percentage)

Displays the percentage of source tax deducted.

Use the Tax Data CHE page (GPCH_TX_DATA) to assign, update and view employee source tax details such as source tax tariffs, mutations, spouse and children data.

Navigation

Global Payroll & Absence Mgmt > Payee Data > Taxes > Maintain Source Tax Data CHE

Image: Tax Data page

Tax Data page

Tax Data page

Field or Control

Definition
Residence or Work Location

If the address of the employee is in Switzerland, the system displays the Residence field label. If the address of the employee is not in Switzerland, the system changes the field label to Work Location and displays the corresponding Postal, City and Canton..

Override

Select to override the canton. The Canton field becomes available, in which you can select a canton.

Municipality Code

Select the code of the municipality in which the employee lives. Prompt values are the municipality codes that correspond to the canton.
Withholding Tax Tariff and Default

Select a tariff from the list of valid tariffs for the canton. This tariff is used to calculate the source tax under the regular or standard method.

The system defaults source tax tariff codes based on civil status, number of children, and work permission. This information is usually available in HCM. PeopleSoft, however, provides a default tariff code and an override option in its Global Payroll for Switzerland application.

For example if the default list shows the tariff code B0Y and B0N in the Default field, and both codes are also available in the prompt list, the system displays B0Y in the edit box.

Note: If the tax tariff code is not present in the prompt list when you click the Lookup button, the system displays an error message and the page cannot be saved. If you enter a tariff code that is not in the default list but is present in the prompt list, the system also displays a warning message. You can, however, save the page because the tariff code is present in the prompt list.
Apply FTE

For Canton VD user defines whether for an employee with FTE < 1 tax look up considers FTE or not.
Exempt from Source Tax

Select if the employee is exempt from source tax.
Override Tax Amount

Use this field to override the selected tariff and apply the source tax using a fixed deduction.
Override Percent (%)

Use this field to override the selected tariff and calculate the source tax using a fixed percentage.
Estimated Yearly Income

Enter an amount to override the annual income used in the regular source tax calculation. This amount is used to calculate the source tax under the fixed base method.

For more details on the following fields, see Swissdec guidelines, Source Tax chapter.

Field or Control

Definition
Grant Code

Check box Canton assigned a special tariff.
Side Job

Check box Part Time Job.
Annuity

Check box Pension
Denomination

Religion Values are:

  • Roman Catholic.

  • Christian Catholic.

  • Reformed Evangelical.

  • Jewish Community.

  • OtherOrNone.
Other Activities

Other activities, Values are:

  • CH.

  • abroad.

  • abroadAndCH.
Concubinage

Employee life is in a state of concubinat; values are:

  • Yes.

  • No.

  • Unknown.
Mutation Data
EMA

Events, that cause a tariff change E = Start, M = Change, A = End, values are:

  • 11 — E:Company.

  • 12 — E:cantonChange.

  • 13 — E:others.

  • 21 — M:civilstate.

  • 22 — M:partnerWork.

  • 23 — M:sideline.

  • 24 — M:partnerWorkIT.

  • 25 — M:residence.

  • 26 — M:childrenDeduction.

  • 27 — M:churchTax.

  • 28 — M:activityRate.

  • 29 — M:others.

  • 31 — T:Company.

  • 32 — T:naturalization.

  • 33 — T:settled-C.

  • 34 — T:temporary.

  • 35 — T:cantonChange.

  • 36 — T:others.

  • CC – Correction Confirmed

Description

Description of the event.
Event Date

Date of the event.

Defaults to Effdt.
Begin Date

First day of the month for reporting this event (last day of month).

Defaults to last day of Event Date.
End Date

last day of month for reporting this event (last day of month).

Defaults for events 11,12 and 13 to Next open payroll.

For other events to last day of Event Date.
Process In

Next open payroll.
Trigger Status

Status of the event. Values are open or processed.
Dependent Data
Dep/Benef

Dependent ID. Prompts only for existing Dependents.
Relation

Dependent Relation, for source tax we use C and SP.
Name

Name of the dependent.
Birthdate

Birthdate of dependent.
Employment Type

Spouse Employment. The values in the list are

  • WorkOrCmpensatory: Salary or compensatory salary (only).

  • WrkCmpAndAnnuity: Salary or compensatory salary and Pension.

  • Annuity: Pension only.
Begin Date

Begin of counting for tax reporting.
End Date

End of counting for tax reporting.
SideJob (unchecked = Full)

Full-/Part Time
WT Canton (26 Cantons + EX )

Work Location ( 26 Cantons + EX )

Oracle terminology and the corresponding Swissdec terminology

Oracle

Swissdec

Employment Type

  • WorkOrCmpensatory

  • WrkCmpAndAnnuity

  • Annuity

Spouse employment

  • Salary or compensatory salary (only)

  • Salary or compensatory salary + Pension

  • Pension only

SideJob (unchecked = Full)

Full/Part Time

WT Canton (26 Cantons + EX )

Work Location ( 26 Cantons + EX )

The following fields are visible, mandatory or hidden depending on Relation and employment type. See the synopsis below:

Image: Synopsis

Synopsis

Synopsis

Use the FAK/SourceTax(System) CHE page (GPCH_TX_FAK) to view source tax details such as source tax tariffs and basis, amounts, and percentages.

Navigation

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Taxes > FAK/SourceTax(System) CHE > FAK/SourceTax(System) CHE

Image: FAK/SourceTax(System) CHE page

FAK/SourceTax(System) CHE page

FAK/SourceTax(System) CHE page

Field or Control

Definition
Withholding Tax on Commission

Enter a percentage, between 2% and 4%, that the employer deducts from paid taxes for administrative work involved in supporting source tax. See Entering FAK Data. Loading Source Tax Rates updates this percentage as well (creates a new Effdt along with the rates upload).