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Old 24.11.2021, 12:54
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Quellensteuer (Witholding tax) update for people with more than 1 salaried job

Hello,

Something changed in the law for withholding tax for people with more than 1 salaried job. Luckily I have my comfy 100% expat job in English, but this happened to a friend with even less knowledge than me of Swiss national languages

An example, friend worked Tuesday some hours at job A (1200 CHF per month) and Friday another hours at job B (1'500 per month). Both jobs payed little, therefore withholding tax rate for each job was near the minimum ~1-2%.

But, law changed. If the employee does not inform employer A from Tuesday about income B from Friday every month, employer A from Tuesday extrapolates the 1 day job income to 100% occupation for tax rate purposes. At the end, the job that pays 1'200 CHF per month is taxed at 10-11% tax rate which corresponds to a non-existent 100% occupation rate because friend works part-time. In shorter words, people earning 2'700 a month are taxed with a rate that corresponds to 8-9K a month.

The law has provision to avoid doing the stupid thing above. If employee informs employer A before the end of the month the occupation rate and income from employment B, the deducted tax will correspond to 2'700 CHF a month and not the extrapolation to 100%.

The law update is here in:

- German Kreisschreiben Nr. 45 - Quellenbesteuerung des Erwerbseinkommens von Arbeitnehmern §6.4 Satzbestimmendes Einkommen bei einer oder mehreren Teilzeit-Erwerbstätigkeiten ( https://www.estv.admin.ch/dam/estv/d...5-D-2019-d.pdf )

- French Circulaire no 45 - Imposition à la source du revenu de l’activité lucrative des travailleurs §6.4 Revenu déterminant le taux s’il y a une ou plusieurs activités lucratives à temps partiel ( https://www.estv.admin.ch/dam/estv/f...5-D-2019-f.pdf )

So, I'm trying to understand how this works to help. If anyone has a similar puzzle to solve, let's discuss.

The surprise to me is the administrative hell of informing all employers of all other income and occupation rates before the end of the month. How many people under withholding tax will be able to solve the administrative challenge and be able to avoid being taxed as 100% occupation rate when working part time in reality?
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Old 24.11.2021, 20:23
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Re: Quellensteuer (Witholding tax) update for people with more than 1 salaried job

Does the employee have to inform both employers? If not, how would they both know to calculate the Quellensteuer differently?
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Old 25.11.2021, 00:40
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Re: Quellensteuer (Witholding tax) update for people with more than 1 salaried job

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Does the employee have to inform both employers? If not, how would they both know to calculate the Quellensteuer differently?
Yes, that's what I understood from the law/regulation update. How the information exchange is done in the practice....no idea yet.
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Old 25.11.2021, 12:32
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Re: Quellensteuer (Witholding tax) update for people with more than 1 salaried job

Previously, there was a flat tax rate for the second job. This was how it was handled in Canton Zurich.



Can you tell me from the brochure/link you posted which part says that employer A and B need to talk together ?
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Old 25.11.2021, 12:55
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Re: Quellensteuer (Witholding tax) update for people with more than 1 salaried job

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Previously, there was a flat tax rate for the second job. This was how it was handled in Canton Zurich.

Can you tell me from the brochure/link you posted which part says that employer A and B need to talk together ?
Apparently employers don't talk to each other. It's the employee who has to do the communication. Still don't understand how this works in practice: a phone call, whatsapp message, email, registered letter, a special form?

From the French version of the law: section 6.4, page 22/69, this paragraph:

Quote:
Le travailleur à temps partiel est tenu d'informer son ou ses employeur(s) s’il effectue une ou plusieurs activité(s) lucrative(s) (salariées ou indépendantes), respectivement s’il touche des revenus acquis en compensation (voir art. 136 LIFD).
Which the automatic translation is:

Quote:
The part-time worker is required to inform his employer (s) if he carries out one or more gainful activity (s) (salaried or self-employed), respectively if he receives income acquired in compensation (see art. 136 LIFD).
This is very recent, unless accountants are already deducting withholding tax based on these numbers...maybe it's not a good idea to ask. Just be aware regulations changed and be ready to answer when the challenge comes. Section 6.4 is the part that touches salaried workers with more than 1 job.
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Old 25.11.2021, 12:59
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Re: Quellensteuer (Witholding tax) update for people with more than 1 salaried job

People working part time with at one job must also inform their employer that they have no other job. It says holding one or more jobs- so really this affects anyone in a part time salaried job.

What a strange rule. I can't really see the point.
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