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Old 15.09.2021, 12:36
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Employee vs contractor

Hi,

I have live in Switzerland for 6.5 years and I am a permanent employee of a company. They require presence in the office. Until now it wasn't an issue, but we decided with my girlfriend to move away to another canton (no commute possible). The company is willing to keep me, but not on a permanent contract, more like a contractor or self-employed (because I can't be in the office).

Let's say I earn 125k CHF gross annually and they would be my only client, I wouldn't be looking for others.

What form of work should I choose? How do I do that? How do I calculate what pay I should request to match my current salary?

I'm happy to pay someone for such an advice, I am just a bit lost how to look for it. I'm really interested in a piece of advice specifically for my case, I read other threads on this forum and don't seem to find a matching one.

Would be grateful for any information.
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Old 15.09.2021, 12:56
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Re: Employee vs contractor

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Hi,

I have live in Switzerland for 6.5 years and I am a permanent employee of a company. They require presence in the office. Until now it wasn't an issue, but we decided with my girlfriend to move away to another canton (no commute possible). The company is willing to keep me, but not on a permanent contract, more like a contractor or self-employed (because I can't be in the office).

Let's say I earn 125k CHF gross annually and they would be my only client, I wouldn't be looking for others.

What form of work should I choose? How do I do that? How do I calculate what pay I should request to match my current salary?

I'm happy to pay someone for such an advice, I am just a bit lost how to look for it. I'm really interested in a piece of advice specifically for my case, I read other threads on this forum and don't seem to find a matching one.

Would be grateful for any information.
Add up the social costs they pay on your behalf now, probably 13-14% & see if they will pay it. With you living in a lower cost country I suspect they would want to pay rather less.
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Old 15.09.2021, 13:00
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Re: Employee vs contractor

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Let's say I earn 125k CHF gross annually and they would be my only client, I wouldn't be looking for others.

You cannot be self employed as you will be considered as an employee with just one client, you need at least 2 and more like 3 individual clients.


1) Find an umbrella company and "work" for them


2) Set up your own Sàrl or SA company
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Old 15.09.2021, 13:11
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Re: Employee vs contractor

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Add up the social costs they pay on your behalf now, probably 13-14% & see if they will pay it. With you living in a lower cost country I suspect they would want to pay rather less.
OP said a different canton not country.

I accept that my company is more generous when paying pension contributions than some, but when I am calculating the cost of us hiring someone, I add on 20% to cover social security and pension contributions. 6.5% roughly for employer social security contributions and the remainder to cover pension fund contributions and the pension risk premiums. You would also need to consider annual leave, bonuses and any other perks you may get.

OP you cannot work as a contractor here in the way you are describing. You would need to work through an umbrella organisation, who will also want their cut for administering the payroll.
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Old 15.09.2021, 13:38
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Re: Employee vs contractor

Thank you very much for the answers so far.

I understand that having to work through an umbrella company, there would be a cost associated.
Could I (having just one client) open a sole-proprietorship business and run with 1 client? What would the VAT be for that?

On a side note, if I open a business what costs could I associate with the business if I operate from home?
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Old 15.09.2021, 17:07
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Re: Employee vs contractor

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Thank you very much for the answers so far.

I understand that having to work through an umbrella company, there would be a cost associated.
Could I (having just one client) open a sole-proprietorship business and run with 1 client? What would the VAT be for that?

On a side note, if I open a business what costs could I associate with the business if I operate from home?

You need an SARL or an SA company if you want to just invoice 1 client.


SARL costs Chf 20k capital to set up, you get about Chf 17.5k back once notary & taxes are deducted.



SA costs Chf 100k to set up.


You can put in assets as part of the capital, upto 50% i believe, car, computer, "office furniture" however the Commercial Registry will decide what is allowed and the value and it belongs to the company afterwards


Umbrella company, no idea what they will charge, you probably need to negotiate and depending on amounts, business you do and services required.line.


https://www.englishforum.ch/employme...a-company.html




Expenses, anything and everything you can get away with !


If you do set up a company, i strongly suggest you get a Swiss accountant for your books and tax declarations, whilst it is not so complicated, the tax office tend to ask far less questions if the declaration is filed by a professional accountant rather than you


What ever it costs, you will save in the short, medium and long term.
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