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Old 12.07.2019, 16:15
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Contracting Gmbh vs Payrolling, Swiss IT contracting.

I read several posts on here regrding this topic but no clear conclusion what the rules are.

I want to suggest my client (fortune500 company in finance) to hire me through my one man gmbh instead of current solution through a payrolling agency.

I only receive 50% if my cost to the company. The rest goes to payrolling company & tax/pensions.. crazy in my eyes.

Why does the large Swiss companies not pay directly to independent company owners instead of burning cash on payrolling companies? Especially on contractors they have approved and don’t want to fire quickly. I understand initial hire where they want to be able to fire you quick, then payrolling makes sense.

Since contributing to AHV over long period has far higher return on investment than bvg and other taxes. I would save up a lot in gmbh pay out 85.000/year til 65y to get a good AHV. Since I earn 170.000-300.000/year I could retire at ~45y and still do full AHV contribution.

I prefer managing my pention myself, I’m good at living frugally. I get some people forget to save up for pension so government force you to save but I currently earn well and plan my future in detail.

So, should it not be possible for me to request my line manager pay me to my own gmbh instead of payrolling company? This way we both can same a lot of money.
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Old 12.07.2019, 18:06
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Re: Contracting Gmbh vs Payrolling, Swiss IT contracting.

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So, should it not be possible for me to request my line manager pay me to my own gmbh instead of payrolling company?

It is possible to ask, why not? But most large corporations only deal with preferred suppliers. Could be one, could be many.


IE, contract for Novartis, you go via Manpower, that's all they will deal with.
It's saved the company a lot of money having one supplier, now the headache belongs to Manpower.
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Old 12.07.2019, 20:53
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Re: Contracting Gmbh vs Payrolling, Swiss IT contracting.

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Why does the large Swiss companies not pay directly to independent company owners instead of burning cash on payrolling companies?
They don't burn the cash on payroll, you do. It makes no sense to deal with 100 companies, when you can deal with one. Especially give the amount of background checking that is required for each company, the exposure they'd leave themselves open to for pension and AHV should one of these one man companies be judged to be an employee and so on.

Back at the beginning of the 90s most MNCs moved away from exactly what you are proposing because they go burned for pension, AHV, work permits etc....

You need to also take into account that you company will need to be properly licensed etc.. to operate as a preferred supplier to an MNC... and does not come free either.

But paying 50% to a payroll company does not sound at all right, you might need to think about looking for a new one. Even dealing with agents over the past 28 years, I've never had one that got a commission of more than about 15%.
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