Tax and social security contributions at KnowS

For KnowS, it is important that both service providers and clients are aware of their rights and obligations and thus legal employment relationships are established. An important point in this context is the payment of taxes and social security contributions.

For all natural persons and legal entities with tax residency in Switzerland, all income must be declared in the tax return, as income tax is levied on it. Failure to do so may result in interest on arrears or even penalty taxes. From 1 January after reaching the age of 17, every natural person working in Switzerland is also obliged to pay wage contributions. This means that certain predefined portions of the income are paid into various state insurance schemes. These contributions are divided between the employer and the employee. In this way, in addition to a certain retirement provision, the employee receives replacement benefits in the event of a loss of income, such as in the case of disability, death or during military service. These insurance benefits are referred to as the 1st pillar in the Swiss system. In addition, there is the 2nd pillar, which is also compulsory in most cases and includes contributions to the pension fund and accident insurance. Payments to the 3rd pillar, which is an individual, tax-privileged pension plan, are voluntary.

It is therefore important to check the exact circumstances of each employment relationship and to clarify which contributions are to be paid in by whom. In general, social security contributions can always be made at the request of the employee. However, there are cases where the contributions are not compulsory.