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Old 23.02.2020, 13:42
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cleaning job,tax

hello,
my wife and i are soon to be using a cleaner, she is contracted directly by us for two hours each week,we want to keep everything above board, what are our obligations,
we are paying the lady a little bit over the going rate(treat as you expect to be treated etc),and we need to know what/if are there any taxes, social contributions on top of this,who we need to inform,
i hear a lot from armchair experts, but pleas only 100 % kosha advice, none of the old "my mate down the pub reckons...." nonesense
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Old 23.02.2020, 13:47
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Re: cleaning job,tax

I'm sure you can do it all yourself .. or use a service like this
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Old 23.02.2020, 14:46
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Re: cleaning job,tax

AVS puts out a nice guide for employers of domestic help here.

Alternatively, I've been using Quitt, and have been generally pleased by their service, but whether it makes sense certainly depends on what you think your time is worth. Also in order to find the link above (I remembered seeing it before, but not exactly where), I had to sort through a surprising amount of Quitt advertising, often lightly disguised as neutral information - enough that I am now a bit annoyed by them as a company.

Last edited by ThomasSSS; 23.02.2020 at 16:26.
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Old 23.02.2020, 15:27
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Re: cleaning job,tax

Don’t forget the insurance. That could be a costly mistake.
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Old 23.02.2020, 22:20
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Re: cleaning job,tax

Bowlie is right: it is obligatory (and wise) to take out accident insurance for your cleaner.

If she works less than 8 hours per week, on average, you need "BU" (Berufsunfallversicherung) = insurance for accidents at work. This includes accidents she may have while on the direct, uninterrupted route from her home to yours, and back home again.

If she works 8 hours or more per week, on average, you need "NBU" (Nicht-Berufsunfallversicherung) = insurance for accidents outside of work, as well. The BU includes accidents she may have while on the direct, uninterrupted route from her home to yours, and back home again, and the NBU tops this up to include all accidents, anywhere, anytime, including nothing to do with working for you.

Here's the Mobiliar (insurance company) link to the straightforward insurance for part-time staff in private homes, such as cleaners:
https://www.mobiliar.ch/versicherung...ausangestellte

There's more info in their pdf Factsheet, on the right-hand side.

This insurance costs Fr. 100 p.a., and is the standard product. It covers the medical costs of an accident, and also an income replacement while the employee cannot work due to an accident, and in case of disability due to accident, and lump sum upon death due to accident.
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Old 23.02.2020, 22:37
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Re: cleaning job,tax

Here is the link to the SVA, for registering your cleaner. This is the government department dealing with the obligatory social security deductions. It is cantonal, so Uster reports to the SVA Zürich.

https://www.svazurich.ch/internet/de...gestellte.html
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Old 23.02.2020, 22:38
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Re: cleaning job,tax

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hello,
my wife and i are soon to be using a cleaner, she is contracted directly by us for two hours each week,we want to keep everything above board, what are our obligations,
we are paying the lady a little bit over the going rate(treat as you expect to be treated etc),and we need to know what/if are there any taxes, social contributions on top of this,who we need to inform,
Thank you for being one of those employers who want to do the right thing, both legally and in terms of respect for your employee.
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Old 24.02.2020, 07:18
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Re: cleaning job,tax

She does have a valid work permit? You will be expected to have seen it. Take a picture as well.
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Old 24.02.2020, 08:58
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Re: cleaning job,tax

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Bowlie is right: it is obligatory (and wise) to take out accident insurance for your cleaner.

If she works less than 8 hours per week, on average, you need "BU" (Berufsunfallversicherung) = insurance for accidents at work. This includes accidents she may have while on the direct, uninterrupted route from her home to yours, and back home again.

If she works 8 hours or more per week, on average, you need "NBU" (Nicht-Berufsunfallversicherung) = insurance for accidents outside of work, as well. The BU includes accidents she may have while on the direct, uninterrupted route from her home to yours, and back home again, and the NBU tops this up to include all accidents, anywhere, anytime, including nothing to do with working for you.

Here's the Mobiliar (insurance company) link to the straightforward insurance for part-time staff in private homes, such as cleaners:
https://www.mobiliar.ch/versicherung...ausangestellte

There's more info in their pdf Factsheet, on the right-hand side.

This insurance costs Fr. 100 p.a., and is the standard product. It covers the medical costs of an accident, and also an income replacement while the employee cannot work due to an accident, and in case of disability due to accident, and lump sum upon death due to accident.
How does all this work with the concept of being double insured?

"The Cleaner" decides to do "a little cleaning" here and there, 2 hours per week for ten different households.

Does he then get insured by 10 different people all paying 100chf each?

He finishes one job and decides to stop for a McDo before going to the next job.. He trips over and breaks his leg. Which insurance pays that?

What if you get a different cleaner one day, he's got a broken leg so sends his wife over, you start again with new insurance etc?

What if he already has his own accident insurance, he's insured for accidents 11 times?
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Old 24.02.2020, 09:42
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Re: cleaning job,tax

As previously mentioned, if somebody is working for you less than 8 hours per week, then you only need to provide Berufsunfallversicherung - which only covers them while they are working for you.

Somebody in the situation you describe would be covered by each individual employer at the respective places of employment. Personally, I think this makes sense because it puts an onus on the individual employers to ensure safe work environments.

What I have seen is that these plans are written cover anybody working for you at your listed address. So while I'd certainly check the fine print, a change in cleaner or temporary substitution shouldn't change anything from an insurance perspective.

Such an odd-jobber employee would separately want to personally pay for a plan to cover accidents when they aren't working - often this is available as a small addition to the basic health insurance plans.

I suppose that somebody working more than 8 hours per week for 2 or more different employers would indeed be double insured between jobs. My guess is that the insurance companies would negotiate with each other to split the costs in such a situation.
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Old 24.02.2020, 11:45
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Re: cleaning job,tax

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She does have a valid work permit? You will be expected to have seen it. Take a picture as well.
Yes, good point.
If the person is not legally in Switzerland, do not employ them.
If the person is not legally in Switzerland, do not employ them.
If the person is not legally in Switzerland, do not employ them.

Moreover, if the employee is not Swiss, does not have a C-permit (or is not married to someone who is Swiss or has a C-permit), then you must also deduct their Quellensteuer (source tax) and pay this in to the tax office of your canton.

For Zurich, responsible for Uster (from OP's profile)
https://www.steueramt.zh.ch/internet...itgebende.html

See: "Personen mit Wohnsitz in der Schweiz"
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Old 24.02.2020, 11:52
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Re: cleaning job,tax

I highly recommend paying electronically, so all the records stand. The old-fashioned notion of leaving cash in an envelope on the table just doesn't cut it while employers are now responsible for doing the deductions properly.

To summarize:
  • make a contract specifying the gross hourly wage and the deductions (for the AHV, you pay 50% and you deduct 50% of the contribution from her wages)
  • specify that the holiday pay is extra, but is paid out proportionately with each hourly wage and that therefore the employee is responsible for saving this up for her vacation days: the extra of 13.04% corresponds to 6 weeks' paid vacation... this is one form of generosity that does not cost an "small" employer much at all, but can make an employee very happy
  • make a copy of the employee's ID, permit and bank card, get their AHV-Number
  • buy accident insurance (if she works for you for less than 8 hours, then BU suffices): you pay the full premium, not she
  • register the employee with the SVA (with their AHV number), and give her written confirmation that you have done so, and then follow their procedures for paying in the contributions (your and her 50%)
  • register the employee with the tax office (with their AHV number and permit), and give her written confirmation that you have done so: you deduct the tax from her, and you pay it in
  • each month, mail her a pay-slip of the hours, and specify the vacation pay separately (this is law)
  • each year, total up those monthly amounts, and mail her the annual pay-slip, for her taxes

It sounds like a lot of work to start with, but once it is set up, it can run smoothly.

Last edited by doropfiz; 24.02.2020 at 12:04.
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Old 24.02.2020, 12:04
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Re: cleaning job,tax

Cleaners, in particular, cannot typically fill up their day with one client right before and after the next, since they need to have found the clients, and to travel between them, and since clients often cancel for weeks at a time or suddenly. Therefore, they typically remain at the lower end of the earning scale. As such, they hardly ever gain access to a pension plan, and only seldom can they save, and then usually not that much (depending upon their family members' earnings). For this reason, they are all the more dependent upon being properly paid up with the AHV, as it is the only provision for their old-age that they will ever manage to afford.

An employer who ducks around this, and does not pay in the AHV contributions, or doesn't even know to deduct them but just pays the cleaner cash, is effectively (though often without even realising it) eroding the one and only chance she/he has at securing a minumum income for her old-age. That's why I say, once again, thank you to OP, and to anyone else who takes the trouble to do this ethically and legally correctly.
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Old 24.02.2020, 12:58
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Re: cleaning job,tax

Note .. I agree with all the comments on doing the right..

Question though, from somebody who's never done it before. (edit - hired somebody - at all)

Say I have a cleaner who does a couple of hours for me.. Paid 100chf cash at the end of the month.

What would it do to
a: my expense
b: her take home pay

If we changed to a fully legit method?
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Old 24.02.2020, 13:50
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Re: cleaning job,tax

https://www.svazurich.ch/internet/de...gestellte.html

(in German, someone else might tell you the Romand equivalent of the SVA but the numbers will be the same)

You will pay 21.60 on top of the 100CHF your cleaner will take home. Plus you have to take out the accident insurance mentioned before.
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