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Old 04.07.2012, 09:23
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Taxes we need to pay when we hire a nanny

Hi
I'm ready to hire a nanny and am getting conflicting information regarding what is the list of things I have to pay as an employer (beyond withholding her share, which is clear). So far, I have found that as an employer I have to pay 5.15% of Social Security (AHV/IV/EO) and 1.1% Unemployment Insurance. In addition, I need to pay Occupational Insurance (it seems that the annual fee for this is 100CHF) . Up to that point, all of this is mentioned in most threads - so total employer cost is 6.25% plus the occupational insurance.

However, I have also found mixed information about two additional charges. There is a Social Security Administrative Fee (not sure how much this is) and a Family Compensation Fund (FAK) (seems to be 1.4% in Solothurn). Adding this up I may end up with total cost of 8.5% of the nanny's salary. Do you know if this is indeed mandatory? Any help will be greatly appreciated!
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Old 04.07.2012, 10:45
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Re: Taxes we need to pay when we hire a nanny

Hi!

Whilst I do not have an answer to your direct question, I wanted to make 2 points which I hope will help you:

1) If she is employed more than 8 hrs a week than most likely the 100 CHF/yr insurance is not the right one, you would need proper accident insurance which covers her for both professional and personal accidents. If you wish, you can deduct the personal portion from her salary (but most big employers just cover it)
2) Above a certain number of hrs and salary, you also need to check what your obligations are with regards to second pillar pension plan.
3) If she is taxed at source, you need to withhold this and pay it to the tax office.

Sorry that I do not have more details on how the above work exactly

K
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Old 04.07.2012, 12:06
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Re: Taxes we need to pay when we hire a nanny

The SVA in Zurich have an online calculator maybe there is an equivalent for KT Soluturn? http://www.svazurich.ch/internet/de/...tnehmende.html

You need to register your nanny with both the SVA and for pension with the BVG http://www.chaeis.net/en/home.html How much you pay depends on how much your nanny is paid, there is a minimum yearly salary before pension contributions are made. Accident insurance is mandatory but for a full time employee it is closer to CHF1000 per yer for full coverage.
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Old 10.07.2012, 13:03
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Re: Taxes we need to pay when we hire a nanny

I am in the process of finding this out for myself as well, and also think it is very confusing. It would be great to have someone who actually has done it already to share the experience.
I also have another question - what are the hours per day you are asking your nanny to stay? Provided the full working day for me is 8h+1h lunch and + 30min travelling time each way, it seems that nanny has to stay for 10h . My potential nanny was very surprised to hear this though... Am I wrong?
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Old 10.07.2012, 13:41
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Re: Taxes we need to pay when we hire a nanny

I already have on several nanny employment threads, all the information that you need is written here on the forum.

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It would be great to have someone who actually has done it already to share the experience.
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Old 17.07.2012, 10:43
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Re: Taxes we need to pay when we hire a nanny

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I already have on several nanny employment threads, all the information that you need is written here on the forum.
True, there is a lot of information available already, however I have not found all that interests me.
For example:
- how do I apply for BVG insurance (i assume it is Pension fund, right?) and how much do I have to pay for it (% from the salary?)
- how do i pay taxes: once a year\month? do i get a bill or do I have to fill in some forms?
- what happens when a nanny is sick? how do i get compensation money and what\where do i need to submit for this?
- do I have to provide my nanny with salary statements? I have read somewhere that i have to - so how do i do that?

I would appreciate to get some advice on the above.
Thanks.
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Old 17.07.2012, 12:52
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Re: Taxes we need to pay when we hire a nanny

Have a look at:
http://quitt.ch/en

They do all the administrative stuff for a fee, but it probably works out cheaper than you trying to get all the information.
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Old 17.07.2012, 13:26
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Re: Taxes we need to pay when we hire a nanny

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Have a look at:
http://quitt.ch/en

They do all the administrative stuff for a fee, but it probably works out cheaper than you trying to get all the information.
I have found out all the info part from BVG application already, so would not want to pay someone to do it for me.
Still hope for someone experienced to clarify the last points .
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Old 17.07.2012, 22:54
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Re: Taxes we need to pay when we hire a nanny

I have answered all of those questions previously.

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True, there is a lot of information available already, however I have not found all that interests me.
For example:
- how do I apply for BVG insurance (i assume it is Pension fund, right?) and how much do I have to pay for it (% from the salary?)
- how do i pay taxes: once a year\month? do i get a bill or do I have to fill in some forms?
- what happens when a nanny is sick? how do i get compensation money and what\where do i need to submit for this?
- do I have to provide my nanny with salary statements? I have read somewhere that i have to - so how do i do that?

I would appreciate to get some advice on the above.
Thanks.
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Old 17.07.2012, 23:04
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Re: Taxes we need to pay when we hire a nanny

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I have answered all of those questions previously.
Perhaps it is me being too tired after coping alone with 1,5 month twins and not having enough time to look through all the threads here, but at least I have tried... Is that so difficult to post a helpful reply instead of writing the above?
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Old 17.07.2012, 23:15
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Re: Taxes we need to pay when we hire a nanny

I also find it VERY confusing to know exactly what must be done in order to legally employ a nanny here (or just a part-time babysitter). I created a thread about it on here recently and received a lot of responses, but I am STILL confused.
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Old 18.07.2012, 08:50
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Re: Taxes we need to pay when we hire a nanny

I can help with a couple of points hopefully

1) Salary statements: yes, you should provide a monthly one and a yearly one. What I have done is simply set up an excel sheet where I input the monthly hrs and it calculates all the rest. Then I change the date and print it. I keep each month on a different worksheet.
Once a year I do the yearly sum up and print the yearly.
I can send a sample to whoever needs it if you send me an email (NO MP-those will be ignored)
2) Amount to pay for 2nd pillar will be determined by salary and age of the nanny and rules of the plan you sign up to. Employers pay one part and employees another. It usually works out about 5% of insured salary (this is the salary above the AHV amount but below the 89000 (or thereabout) upper limit fixed by second pillar max insured) (IMPORTANT: these are rough amounts I remember by heart from 5 yrs ago-new amounts must be checked)
3) For AHV you get a yearly statement to fill in at the end of Dec and then a yearly bill in Jan/Feb
4) If you wish to be insured for your nanny's sick days, I believe you need specific insurance for this. It is better to check fineprint though as it could work out very expensive. Also pls note that unlike other countries, in CH you are not obliged to pay an employee on long term sickness more than a certain time which is fixed by law and dependant on seniority. So it is often adviced that also employees take out an insurance to protect them from "loss of gain".

I know it does not provide everything but I hope steps in right direction.

It would be great to have all infos in a sticky but I have no time for this right now, sorry

Cheers,

K
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Old 18.07.2012, 11:58
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Re: Taxes we need to pay when we hire a nanny

Maybe it is because I have answered all these and many more questions many times both on the forum and by PM. Letting people know the info is already here means that they can use the search function to find the posts. I've given the answers along with all the links to the websites where you need to register for tax, sva, bvg etc on several threads I guess I am getting fed up being helpful and repeating myself.

Congratulations on your twins

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Perhaps it is me being too tired after coping alone with 1,5 month twins and not having enough time to look through all the threads here, but at least I have tried... Is that so difficult to post a helpful reply instead of writing the above?
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Old 18.07.2012, 12:03
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Re: Taxes we need to pay when we hire a nanny

1. you do not have to provide a monthly salary statement but you do have to provide one if asked.

3. Bills for SVA, BVG and tax are all paid quarterly. Year end statements have to be filled in as Kiri says. My info is for KT Zurich, could be different payment schedules in other Kantons.

A sticky with all the info collated is a great idea. Would save the same questions being asked repeatedly.

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I can help with a couple of points hopefully

1) Salary statements: yes, you should provide a monthly one and a yearly one. What I have done is simply set up an excel sheet where I input the monthly hrs and it calculates all the rest. Then I change the date and print it. I keep each month on a different worksheet.
Once a year I do the yearly sum up and print the yearly.
I can send a sample to whoever needs it if you send me an email (NO MP-those will be ignored)
2) Amount to pay for 2nd pillar will be determined by salary and age of the nanny and rules of the plan you sign up to. Employers pay one part and employees another. It usually works out about 5% of insured salary (this is the salary above the AHV amount but below the 89000 (or thereabout) upper limit fixed by second pillar max insured) (IMPORTANT: these are rough amounts I remember by heart from 5 yrs ago-new amounts must be checked)
3) For AHV you get a yearly statement to fill in at the end of Dec and then a yearly bill in Jan/Feb
4) If you wish to be insured for your nanny's sick days, I believe you need specific insurance for this. It is better to check fineprint though as it could work out very expensive. Also pls note that unlike other countries, in CH you are not obliged to pay an employee on long term sickness more than a certain time which is fixed by law and dependant on seniority. So it is often adviced that also employees take out an insurance to protect them from "loss of gain".

I know it does not provide everything but I hope steps in right direction.

It would be great to have all infos in a sticky but I have no time for this right now, sorry

Cheers,

K
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Old 18.07.2012, 13:27
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Re: Taxes we need to pay when we hire a nanny

O.K. , if I would be your nanny I wouldn't be surprised for working 10 hours a day. I work average 12-weekends off, and I am quite happy that I am not in charge for the evenings.

Average working hours for a nanny is about 50-60 hours/week, but sometimes in some countries they forget to declare a part of it.
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Old 25.07.2012, 11:19
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Re: Taxes we need to pay when we hire a nanny

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O.K. , if I would be your nanny I wouldn't be surprised for working 10 hours a day. I work average 12-weekends off, and I am quite happy that I am not in charge for the evenings.

Average working hours for a nanny is about 50-60 hours/week, but sometimes in some countries they forget to declare a part of it.
She realized already that it is normal, plus I did stress that she needs to rest during the day and she won't have to work literally 10 hours. Babies do sleep during the day and she can rest at the same time as well. I think she is convinced now .
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Old 25.07.2012, 11:35
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Re: Taxes we need to pay when we hire a nanny

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A sticky with all the info collated is a great idea. Would save the same questions being asked repeatedly.
It sure will
I think now I have all the info necessary. The quotes from insurance are pending, contract is ready to be signed. Hopefully no important points forgotten .
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Old 25.07.2012, 12:27
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Re: Taxes we need to pay when we hire a nanny

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Have a look at:
http://quitt.ch/en

They do all the administrative stuff for a fee, but it probably works out cheaper than you trying to get all the information.

Thank you for this link. I am thinking of using it !! Good spin-off idea.....


I have read in
http://quitt.ch/en/faq#forWho

"Only expenses for child care can be deducted under certain circumstances. For details please see your tax declaration."

I don't have any tax declaration (yet). Can anyone help in here?

Many thanks!
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Old 25.07.2012, 12:36
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Re: Taxes we need to pay when we hire a nanny

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Thank you for this link. I am thinking of using it !! Good spin-off idea.....


I have read in
http://quitt.ch/en/faq#forWho

"Only expenses for child care can be deducted under certain circumstances. For details please see your tax declaration."

I don't have any tax declaration (yet). Can anyone help in here?

Many thanks!
Unfortunately we don't get to deduct our taxes, as both of us on B-permit and salaries lower than 120K.
However I wanted to go and ask the Finansamt if becoming an employer changes the situation. Next year I will hit the 5 years mark in Switzerland and plan to apply for C-permit, I believe at least then it should be possible.

How much money could you potentially save on this?
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Old 25.07.2012, 12:45
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Re: Taxes we need to pay when we hire a nanny

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How much money could you potentially save on this?

Probably not a big deal, however I like the saying "take care of the pennies and the pounds will take care of themselves"
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