Quitt has registered your employee with the competent compensation office using the simplified procedure (BGSA).
The simplified procedure is an administrative simplification for anyone who employs someone with a low income (e.g. domestic help) or who has several employees with a low total annual salary.
In this procedure, all employees, regardless of residence status or nationality (i.e. also Swiss) benefit from a low flat-rate tax of 5% of the gross salary. This flat-rate tax is deducted directly from the salary (and is usually shown as withholding tax on the pay slip, which often leads to confusion).
The simplified procedure offers employers the advantage that no additional, administrative effort is required to register and pay the withholding tax at the cantonal tax office. In addition, employers do not have to issue an annual salary statement for their employees; they receive the salary statement directly from the compensation office (in the 1st quarter of the following year). The advantage for employees is that they do not have to file an additional tax return for this income.
However, registration for the simplified payroll procedure is only possible if the gross salary of the individual employee does not exceed CHF 1,890 per month or CHF 22,680 per year. The total gross salary of the company or employer may not exceed CHF 60,500 per year.
If these criteria are not met, the private employer is registered with the compensation office in the ordinary procedure.