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Old 22.03.2020, 21:25
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CORONA fallout: Help for Small and single-person businesses

The Swiss Govt has said that single owner firms, individuals who work on contrcat basis etc will be entitled to some help from the Govt.

I will be contacting our Commune in the coming week any way but does anayone have any idea how this is going to work? How does one qualify?
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Old 22.03.2020, 22:16
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

As I understood the Federal Council's announcement on Friday 20th March 2020, they said they were going to work through the weekend, in the hope of being able to provide a first outline of how it would work, during the course of this week starting Monday 23rd March 2020.

This means that no-one yet knows the answers. This economic relief might be in the form of a flat daily sum. Or it might be in proportion to one's income. It is not yet clear through which channel it will be processed: possibly the unemployment office.

One point was made clear, namely that the special fund for relief is dedicated only to the consequences of the shut downs because of Corona. Therefore, small businesses and individual contractors will be eligible only if they are able to demonstrate that their current financial need is a result of the situation with Corona. This is to prevent abuse of the urgent relief measures, so that claims are not put in by small businesses which were already flailing and failing, long before and unrelated to this crisis.

Therefore, until the actual procedures are made known, probably the best thing any sole trader or contractor or owner of a small business can do is.... to get all the paperwork in order. Make sure you can demonstrate, on a month-by-month basis, how things looked over the past year, since they will need to find a way to compare the business's general health pre-Corona, with the negative situation that developed because of Corona. So do your bookkeeping, gather all the documents you'd need for your tax form, if possible do the tax form, and especially document all the months (or weeks) of 2020, so you can show what, exactly, went wrong, and why.

If you can, specifically ask your clients/suppliers/collegues, etc. to put in writing, for you, whatever was not able to be done. For example:
  • "Mr Fixit-Man has been a reliable client of ours for three years, since DATE. Approximately once a month, we supply Mr Fixit-Man with building supplies. On DATE, he placed another order, for n items for y price. We anticipated that we would supply those to him by DATE. Unfortunately, our suppliers could not deliver to us, because of the circumstances around Corona, and we learned this from them on DATE. On DATE we had to inform Mr Fixit-Man that we would, regrettably, not be able to supply. This resulted in Mr Fixit-Man's not being able to complete work promised to his clients."
    or:
  • "On about DATE, we began discussions with Happy-Caterer to provide a 3-course meal for 220 delegates to our annual conference, to be held in VENUE on DATE. We made the final arrangements on DATE, and our fee to Happy-Caterer would have been n, paid 60% in advance of the event, and 40% upon completion. When the Swiss Federal Councel announcement was made on DATE, that that all gatherings over n people were prohibited, we had to cancel our conference completely, and thereby also our contract with Happy-Caterer, thereby causing them considerable loss of income."
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Old 22.03.2020, 22:41
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

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As I understood the Federal Council's announcement on Friday 20th March 2020, they said they were going to work through the weekend, in the hope of being able to provide a first outline of how it would work, during the course of this week starting Monday 23rd March 2020.

This means that no-one yet knows the answers. This economic relief might be in the form of a flat daily sum. Or it might be in proportion to one's income. It is not yet clear through which channel it will be processed: possibly the unemployment office.

One point was made clear, namely that the special fund for relief is dedicated only to the consequences of the shut downs because of Corona. Therefore, small businesses and individual contractors will be eligible only if they are able to demonstrate that their current financial need is a result of the situation with Corona. This is to prevent abuse of the urgent relief measures, so that claims are not put in by small businesses which were already flailing and failing, long before and unrelated to this crisis.

Therefore, until the actual procedures are made known, probably the best thing any sole trader or contractor or owner of a small business can do is.... to get all the paperwork in order. Make sure you can demonstrate, on a month-by-month basis, how things looked over the past year, since they will need to find a way to compare the business's general health pre-Corona, with the negative situation that developed because of Corona. So do your bookkeeping, gather all the documents you'd need for your tax form, if possible do the tax form, and especially document all the months (or weeks) of 2020, so you can show what, exactly, went wrong, and why.

If you can, specifically ask your clients/suppliers/collegues, etc. to put in writing, for you, whatever was not able to be done. For example:
  • "Mr Fixit-Man has been a reliable client of ours for three years, since DATE. Approximately once a month, we supply Mr Fixit-Man with building supplies. On DATE, he placed another order, for n items for y price. We anticipated that we would supply those to him by DATE. Unfortunately, our suppliers could not deliver to us, because of the circumstances around Corona, and we learned this from them on DATE. On DATE we had to inform Mr Fixit-Man that we would, regrettably, not be able to supply. This resulted in Mr Fixit-Man's not being able to complete work promised to his clients."
    or:
  • "On about DATE, we began discussions with Happy-Caterer to provide a 3-course meal for 220 delegates to our annual conference, to be held in VENUE on DATE. We made the final arrangements on DATE, and our fee to Happy-Caterer would have been n, paid 60% in advance of the event, and 40% upon completion. When the Swiss Federal Councel announcement was made on DATE, that that all gatherings over n people were prohibited, we had to cancel our conference completely, and thereby also our contract with Happy-Caterer, thereby causing them considerable loss of income."
Great Info. Thanks a lot. Wait and watch it is going to be....

I am a consultant and trainer and usually get contracts from a World Organisation to Consult or train on their behalf around the world but mainly in Europe MEA. Everything has come to a standstill and all their published events are being cancelled due to lack of participants. In the present scenario, I dont expect to get anything in the coming 3-4 months, depending on how this is going to pan out. Usually it is at least 5 to 10 days a month..
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Old 23.03.2020, 08:38
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

Below is a translated explanation of the eligibility of self-employed for crisis financial support from the NZZ article linked below:

"A first group of beneficiaries are those self-employed whose activities are currently rendered impossible by the Federal Council. These include event managers, many retailers and service providers with close physical customer contact such as hairdressers, yoga teachers and beauticians. Also covered are artists who can no longer perform due to the ban on events.

Not covered by this social benefit, on the other hand, are in principle service providers who feel the "secondary effects" of the crisis - such as consultants, for example, who are also experiencing a drastic slump in demand. The federal government provides two routes for this: The cantonal equalisation funds would interpret applications "favourably", and if it should turn out that significant groups fall through the cracks of the planned safety net, the tightening of the network would become an issue. In total, there are about 330,000 individual companies in Switzerland. According to a heroic (shaky) assumption by the Swiss government, about 60,000 self-employed persons who are directly affected by government measures could claim compensation for loss of earnings."

https://www.nzz.ch/wirtschaft/die-ma...sen-ld.1547872

Also, this earlier thread discusses the issue of crisis financial support for the self-employed:

https://www.englishforum.ch/business...ovid-19-a.html
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Old 07.04.2020, 21:15
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

The Federal Council continues to work on a plan to provide financial support to the self-employed who have suffered from lost revenue due to the c-virus crisis but are neither covered by unemployment insurance nor by the new income replacement benefit for the self-employed. The NZZ writes today:

"Self-employed must wait

One point of discussion concerned those self-employed persons who suffered a drop in turnover even though their business was not forcibly closed down by the Federal Council: taxi drivers, gardeners, physiotherapists, graphic designers, consultants and many more. These entrepreneurs are currently covered neither by unemployment insurance nor by the new income replacement benefit for the self-employed. The WAK* calls on the Federal Council to close this gap. In principle, the commission is pushing through open doors here. A week ago, the Federal Council had decided in principle to cushion such "hardship cases", but implementation is still awaited. According to one observer, the administrative bodies involved have not yet agreed on a concept, so that a decision is unlikely to be ready until next week at the earliest."

https://www.nzz.ch/wirtschaft/wenn-d...rer-ld.1550777

* WAK: Wirtschaftskommission: Economics Committee of the Swiss Upper House (Ständerat)
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Old 08.04.2020, 14:50
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

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The Federal Council continues to work on a plan to provide financial support to the self-employed who have suffered from lost revenue due to the c-virus crisis but are neither covered by unemployment insurance nor by the new income replacement benefit for the self-employed. The NZZ writes today:

"Self-employed must wait

One point of discussion concerned those self-employed persons who suffered a drop in turnover even though their business was not forcibly closed down by the Federal Council: taxi drivers, gardeners, physiotherapists, graphic designers, consultants and many more. These entrepreneurs are currently covered neither by unemployment insurance nor by the new income replacement benefit for the self-employed. The WAK* calls on the Federal Council to close this gap. In principle, the commission is pushing through open doors here. A week ago, the Federal Council had decided in principle to cushion such "hardship cases", but implementation is still awaited. According to one observer, the administrative bodies involved have not yet agreed on a concept, so that a decision is unlikely to be ready until next week at the earliest."

https://www.nzz.ch/wirtschaft/wenn-d...rer-ld.1550777

* WAK: Wirtschaftskommission: Economics Committee of the Swiss Upper House (Ständerat)
Thank you very much. Good to know that they haven't rejected this category completely.
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Old 09.04.2020, 21:18
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

The NZZ is reporting that extension of emergency compensation to the self-employeds who are not otherwise covered continues to be discussed and involves two basic models (translated excerpts):

"In principle, two basic models are said to be under discussion. In one of the models, the compensation payment of 80% of the loss of earnings up to a maximum of CHF 5,880 per month granted to self-employed persons already covered would in principle be extended to self-employed persons not previously covered. This would potentially entitle a further 200,000 to 250,000 people to federal payments; however, not all of them are likely to suffer massive losses. "

"In a second model under discussion, the Confederation would "only" pay, while the implementation would lie with the cantons. The advantages of this model would be that it would relieve the burden on the organisation of the income replacement scheme and would enable the cantons to compare applications with their tax data and with the cantonal support programmes. One disadvantage mentioned is that more precise agreements with the cantons would be necessary and that this model would be less ready for decision by the Federal Council."

https://www.nzz.ch/wirtschaft/nothil...ten-ld.1551005

Waiting for Godot in Switzerland!
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Old 09.04.2020, 21:45
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

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Great Info. Thanks a lot. Wait and watch it is going to be....

I am a consultant and trainer and usually get contracts from a World Organisation to Consult or train on their behalf around the world but mainly in Europe MEA. Everything has come to a standstill and all their published events are being cancelled due to lack of participants. In the present scenario, I dont expect to get anything in the coming 3-4 months, depending on how this is going to pan out. Usually it is at least 5 to 10 days a month..
As a consultant to this «World Organisation» are you paying Swiss taxes / deductions / VAT on your income?

If not, I doubt that you will be entitled to anything.
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Old 15.04.2020, 14:51
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

Banner outside my workshop.
No new order taken over a month now.
I'm furious for the treatment of the federal government towards business like mine and many more that are forgotten in this chaos and receive no financial help. In the meantime, rent is due and all outgoings go like normal.

Government: We didn't close you = therefore you receive no financial help

At the moment I fell like:

"Government: OK, you are allowed to fish, but we took all the fish out of the lake"
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Old 15.04.2020, 17:30
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

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As a consultant to this «World Organisation» are you paying Swiss taxes / deductions / VAT on your income?

If not, I doubt that you will be entitled to anything.
I declare my income here to the local tax authorities, pay the taxes due as well as make the AVS payments as required. I don't pay any VAT
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Old 16.04.2020, 07:50
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

Blick appears to have a source in the government and claims that a financial support proposal for the self-employed will be presented to the Federal Council today:

"There's finally light at the end of the tunnel. Even for those self-employed people who have fallen between the cracks. Blick knows that on Thursday the Federal Council will also decide on a solution for the 270'000 or so self-employed people who have been massively affected indirectly by the lockdown - such as taxi drivers and physiotherapists.

Ceiling at CHF 90'000 income

According to reports, there is a proposal on the table from the Federal Social Insurance Office (Bundesamt für Sozialversicherung) to provide the self-employed with financial support: The support limit is capped at an annual income of CHF 90'000.

The whole thing would be financed by the income replacement program (EO). Cost: around CHF 6 billion over the next six months. Apparently the proposal has good chances in the Federal Council."

https://www.blick.ch/news/politik/co...d15846402.html
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Old 16.04.2020, 17:14
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Re: CORONA fallout: Help for Single owner firms, consultants, contrcators

Blick is reporting the following decision by the Federal Council (translated):

"Help for the self-employed

The Federal Council has also decided to extend the entitlement to corona compensation. Compensation will now also be paid to self-employed persons who are only indirectly impacted by the official measures to combat the corona pandemic because they are allowed to continue working but have less or no work because of the measures, such as taxi drivers. The compensation, like the existing corona compensation for loss of earnings, is limited to CHF 196, i.e. to CHF 5'880 per month. The entitlement arises retroactively from the first day of the loss of earnings, at the earliest from 17. March 2020. The cost of extending the corona compensation for loss of earnings to hardship cases is estimated at CHF 1.3 billion, for a period of two months."

https://www.blick.ch/news/politik/me...d15847323.html


Added:
To apply for this hardship (Härtefall) compensation, self-employed should contact their compensation fund (Ausgleichskasse). This is the link to SVA Zürich:


https://www.svazurich.ch/internet/de...-regelung.html

Last edited by Mullhollander; 17.04.2020 at 12:00. Reason: Additional comment
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Old 17.04.2020, 11:51
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Corona - Liquidity Bridge Loans

In the event that business owners and managers are unaware of this, the Swiss Federal government is backing liquidity bridge loans to small businesses of up to 10% of revenues at 0% interest for five years with a maximum loan amount of CHF 500'000. Loans above this amount up to CHF 20'000'000 are 85% backed by the Swiss Federal government with an interest rate of 0.5%. The turnaround time on the loans up to CHF 500'000 has been reported to be within one business day.

More details are available at this link (English):

https://www.easygov.swiss/easygov/#/en/landing/covid

Also, for start-ups with limited revenues, the calculation is reportedly:

Annualized wages x 3 x 10%
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Old 17.04.2020, 16:39
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Re: CORONA fallout: Help for Small and single-person businesses

This is an example of how the self-employed loss of earnings compensation is calculated (translated):

"How is my loss of earnings compensation calculated?

Calculation example

Karim C. is self-employed and runs a barbershop. In 2019, Karim reported an annual income of CHF 45'000 to his compensation fund (Ausgleichskasse) and paid AHV contributions based on this income.

Karim's average daily income is calculated as follows: CHF 45'000 divided by 360 days gives CHF 125 per day. Karim receives 80% of his usual daily income in compensation (CHF 125 x 80% = 100 francs). He receives gross CHF 100 per day in corona compensation. Social benefits of 5.275 % are deducted from the compensation (100 francs - 5.275 % = 94.725 francs). Karim thus receives CHF 94.725 net per day.

For one month Karim receives a payment of CHF 2'841.75 (CHF 94'725 x 30 days).

Complete calculation: 45'000 / 360 x 0.8 x 0.94725 x 30=2'841.75"

Translation of FAQ 4 at this link "Wie wird meine Erwerbsausfall-entschädigung berechnet?":

https://www.sva-ag.ch/dienstleistung...ationen-fuer-0
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Old 01.07.2020, 18:57
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Re: CORONA fallout: Help for Small and single-person businesses

Blick is reporting today that the short-time-work (Kurzarbeit) scheme for self-employed is to be re-started and continue through mid-September (translated):

"The Federal Council is still supporting the self-employed after all. Assistance for self-employed persons directly and indirectly affected by the Corona crisis will be extended until mid-September. This was decided by the government today.

At the end of May, the Corona aid for tens of thousands of self-employed and small businesses had expired. This caused an outcry of indignation and pressure from parliament.

Now many affected people can breathe a sigh of relief. Self-employed people who are particularly affected by the measures to contain the Corona pandemic can again count on Corona-Hilfe via the Income Compensation Act (EO). Those affected do not need to take any special steps; the AHV compensation funds will resume payment of their corona employment compensation, as the Federal Council has written."

https://www.blick.ch/news/politik/ke...d15964667.html
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