How can clients calculate grossed-up incentives in Switzerland?

As of January 1, 2024, clients must provide pre-calculated grossed-up amounts for any net incentives they want to pay employees. Remote will no longer calculate gross-ups. To help clients with a standardized approach, four formulas are available, depending on the employee's gender and tax-at-source status.

Gross-up formulas:

• Male employee not taxed at source:

  Gross = Net / (1 - 0.053 - 0.011 - 0.01168 - 0.00405)

  Example: To pay a guaranteed net incentive of 500 CHF:

  Gross = 500 / (1 - 0.053 - 0.011 - 0.01168 - 0.00405) = 543.3 CHF

• Male employee taxed at source:

  Gross = Net / (1 - 0.053 - 0.011 - 0.01168 - 0.00405 - 0.12)

• Female employee not taxed at source:

  Gross = Net / (1 - 0.053 - 0.011 - 0.01168 - 0.00673)

• Female employee taxed at source:

  Gross = Net / (1 - 0.053 - 0.011 - 0.01168 - 0.00673 - 0.12)

How can clients determine if employees are taxed at source?

You can find this information in the employee's profile on their Remote account. Look for their tax-at-source status under the profile section.

From there, go to the Administrative details, and you will see the question “Is the tax at source?”

Are gross-up calculations exact?

The provided formulas give an approximation of the gross amount needed to ensure employees receive their desired net incentive. While the formulas are designed to ensure employees receive at least the guaranteed net amount (or slightly more), they do not guarantee precise accuracy due to potential variations in tax rates and deductions.