At the end of the year, compensation funds may send additional invoices to organizations. What was paid during the year being an estimate, the final amount is calculated at the end of the year and is based on the actual data of the payroll. This is why the fund may charge you more or issue a refund.
Let's detail the calculation system in order to help you better understand and anticipate.
AVS contributions are collected by the compensation funds, together with those of the AI (disability insurance) and APG (insurance for loss of earnings). In the same way, the employer deducts half of the contributions from the wages and pays them periodically to the compensation fund, together with theirs. A contribution for administrative costs paid by the company is also added.
At the beginning of each calendar year, or at its date of creation, the company shares with the compensation fund an estimate of its annual payroll. On this basis, the fund calculates and sends down payments to the employer. These will generally be monthly installments, but they can be quarterly if the annual payroll is less than CHF 200,000.-. These contributions paid by installments are provisional partial payments.
Most companies use the ordinary accounting method and must notify their fund when major changes in payroll occur (variation of 10% or more compared to the amount declared and greater than CHF 20,000 .-) so that the installments can be adapted.
Under certain conditions, in particular if the timely payment of contributions is guaranteed, the compensation fund may authorize a company to pay actual instead of non-provisional contributions.
Since June 1, 2016, the employer is no longer obliged to announce new employees who already have an AVS number within 30 days of hiring. But they have to announce them at the latest when submitting the salary declaration for the past year. However, this step being compulsory to benefit from family or maternity allowances or military loss of earnings allowances, it is recommended to systematically announce new employees as soon as they start.
Within 30 days of the end of the settlement period (30th January at the latest), the company fills in a salary certificate (on paper or sent electronically using the Swissdec system) on which each annual gross salary paid to its employees is indicated. The compensation fund creates the annual statement and the final contributions on that basis. If the advance payments are higher than the final contributions, the compensation fund reimburses the difference. If they are lower than the final contributions, the compensation fund charges the difference.
This process therefore causes no problem when the workforce is constant. But case of an increase in the number of employees, there may be a significant overdraft at the end of the year. This is why it is better to inform the fund that the advance payment must be updated, or at least be aware that a bigger invoice will be received at the end of the year.
Please note default interests may apply if: the annual statement has not been sent on time, contributions have not been paid within 30 days of invoicing or the difference between contributions and the advance payment actually due is too important. On the contrary, in certain situations such as overpaid equal or personal contributions, as well as contributions to be refunded based on the down payment, compensatory interests may be granted.
The income on which the amount of the contribution is calculated is not limited to salary, but includes any remuneration paid in cash or in kind, related to employment service.
In fact, here are some examples of changes that may affect your statement and that you may not have expected at the start of the year: