Preparing salary certificates (Lohnausweise) is a demanding task. For the 2025 tax year, there are again several new developments to consider. In this updated article, we list the 11 most common pitfalls and how to avoid them.
1. Free transportation between place of residence and place of work (F)
If the employer provides a company vehicle that may also be used for commuting, this is considered a free commutation. In this case, box F must be ticked. In addition, the private use share (flat rate of 0.9% of the purchase price per month) must be declared under section 2.2. The tick in box F is crucial as it prevents the employee from claiming the private deduction for commuting expenses.
More details can be found in the following SFTA (Swiss Federal Tax Administration) documentation: “Extended flat-rate taxation of private use of company vehicles”
Box F must also be ticked if the employee is provided with a General Abonnement (GA – annual public transport pass) used for business reasons. The situation is different if there is no business necessity: in that case, the GA must be declared at its market value under section 2.3 of the salary certificate, and box F should not be ticked.
Reimbursement for a Half-Fare Card (Halbtax) does not need to be certified.
Important clarification – Charging station for electric company vehicles: If the employer covers the costs for installing a private charging station (Wallbox), this amount must be treated as a one-time, monetary benefit in the year of acquisition. It must be added to the gross salary under section 1 and is fully subject to tax and OASI (AHV) contributions.
2. Canteen catering / lunch-checks (G)
If the company offers subsidized canteen meals or lunch checks, this must be declared by ticking box G.
Clarification for Field Staff: For employees who spend more than 60% of their working time in the field and whose lunch is paid for by the employer, the remark “Lunch paid by employer” must now exclusively be noted under section 15.
3. Benefits of the unemployment fund / daily allowances / Compensation for loss of earnings (maternity, military)
The following benefits must be declared under section 7 “Other benefits” in the salary certificate:
- Daily allowances from health, accident, and disability insurance, provided they are not declared under section 1. $\rightarrow$ Please note: If these daily allowances are declared under section 1, the type and duration of the benefit must be indicated in section 15 (Remarks).
- Unemployment insurance benefits
- EO (Compensation for Loss of Earnings) benefits. This also includes daily allowances for maternity, paternity, or other parent’s leave.
4. Participation rights
Freely available employee participations (e.g., shares and/or options, etc.) are part of the taxable income and must be declared in the salary certificate under section 5. A separate schedule with details must also be created as an appendix to the salary certificate. This section must state the taxable earned income that accrued to the employee from employee participation rights (e.g., shares and/or options, etc.) in the corresponding calendar year. The taxable wage component here is the difference between the fair market value and the issue price.
For employee options that are not yet taxable (so-called “unechte Mitarbeiterbeteiligungen” or phantom shares, where the monetary benefit only arises upon exercise or realization), no value is declared in Section 5. However, a corresponding note in section 15 of the salary certificate is required, indicating that such contingent rights exist, and a schedule with details should also be prepared.
5. Child, family and birth allowances
Family allowances must be declared under section 1 in the salary certificate. If they are paid directly by the compensation fund, a corresponding note must be made in the salary certificate under section 15.
6. Contributions to vocational education and training
Section 13.3 must state all actual reimbursements from the employer for job-related education and training (actual invoices issued in the name of the employee). Reimbursements paid directly to third parties should not be stated here.
Costs assumed by the employer for non-job-related educational courses must be certified in section 3.
7. Remunerations for commuting to work
If the employee’s costs for commuting by public transport are paid, this amount must be declared under section 2.3. In this case, box F must not be ticked (unless a GA is also provided for business reasons).
8. Expense reimbursements
Section 13 of the salary certificate declares expense reimbursements that are not a component of the salary. Correct declaration depends significantly on whether an expense regulation approved by the cantonal tax authority exists.
- With an approved expense regulation: No amounts or ticks are made in Section 13. A note in section 15 is sufficient, e.g., “Expense regulation approved by Canton XY.”
- Without an approved expense regulation:
– Tick in 13.1.1: For actual expenses related to regular travel activity.
– Amount in 13.1.2: For all other actual expenses (e.g., home office).
– Amount in 13.2: For all flat-rate expenses (e.g., car or representation flat rates).
Cost compensations incurred before or after the actual work activity are not expense reimbursements but are part of the salary.
Important: BYOD allowances (“Bring your own device”) are considered part of the relevant salary in some cantons, such as the Canton of Zurich. Such allowances are therefore not comparable to mobile phone allowances, which are not taxable if appropriately proportioned.
9. Conversion of wages from foreign currency or cryptocurrency
The salary must generally be converted at the daily exchange rate. For periodic payments, there are two distinctions:
- If the salary is converted monthly, the converted annual salary must be declared.
- If the salary is not converted monthly, the gross salary in foreign currency is converted using the annual average exchange rate determined by the Swiss National Bank (SNB).
Salary payment in a cryptocurrency (payment token) is treated the same as salary payment in a foreign currency. Further documentation can be found here: SFTA: “Documentation – Cryptocurrencies”
10. Other remarks
Part-time workload
For employees working part-time, a corresponding remark, such as “Part-time employment,” must be made under section 15 (Remarks). The exact degree of employment no longer needs to be stated as of 2025.
Daily benefits
Stating the employee’s KTG (Daily Sickness Allowance) contributions is not mandatory.
Interruption of employment during the year
If employees were employed multiple times for a short period during a year, the first day of the first employment and the last day of the last employment must be stated. The actual timeframes must then be listed under section 15.
New Address Requirement
The employee’s current and complete residential address at the time of completion must now be recorded. Therefore, ensure the address is correct and complete.
11. Not to be declared services
In principle, all employer benefits are taxable; however, there are some exceptions that do not need to appear on the salary certificate:
- Half-Fare travel cards
- Reka-Checks up to CHF 600 per year
- Christmas, birthday, and similar gifts in kind up to CHF 500 per event (does not apply to cash gifts or reimbursements)
- Free break-time meals
- Free parking
Attention: If a gift in kind exceeds the value of CHF 500, the entire amount must be declared as salary, not just the difference.
Further information can be found in the Instructions for Completing the Salary Certificate 2025.
A defective salary certificate is no trivial offense. It inevitably leads to queries from the tax administration to the employee, causing frustration. For the company, this means additional effort for corrections, potential surcharges with social insurances (AHV/UVG), and, in the worst case, adjustments and fines during an audit. Clean reconciliation (FIBU/LOBU) and correct declaration are the best protection.