Taxes & Payroll
Withholding tax for household staff: 5% flat, or you're liable for what's missing
Forget to withhold the tax and you still owe it - plus interest. The tax office catches up retroactively once it notices the missing deductions. Under the simplified procedure you deduct it for every employee, Swiss citizens and C permit holders included; under the ordinary procedure, whenever your household worker doesn't hold a C permit. This guide covers how the deduction works, which rate applies, and what changed with the 2021 reform.
If you use the simplified procedure, you as the employer deduct a flat 5% of gross pay as withholding tax, the same in all cantons and for every employee, including C permit holders and Swiss citizens. Under the ordinary procedure you deduct it only if your household employee does not hold a C permit, at the cantonal tariff.
- You as the employer owe the deduction, not your household employee. Forget it and you are liable for the tax (Art. 88 DBG).
- Above CHF 22,680 in annual wages the standard procedure applies: cantonal tariff (e.g. A0), settled directly with the tax office.
- If she lives in France and works in BE, BL, BS, JU, NE, SO, VD or VS, no Swiss withholding tax is deducted (with the annual French residence certificate).
Official sources
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Simplified procedure
For annual wages up to CHF 22,680, private employers can use the simplified settlement procedure. The flat deduction of 5% covers all taxes (federal, cantonal, municipal). The employee no longer declares this wage in her tax return.
Next question: who deducts the withholding tax every month and settles it correctly?
Register with this wage →Who Is Subject to Withholding Tax?
Under the simplified procedure the flat 5% applies to every employee, Swiss citizens and C permit holders included. Under the ordinary procedure it depends on the residence permit:
Subject to withholding tax
- •B permit (residence permit); from CHF 120,000 gross income with a mandatory NOV on top
- •L permit (short-term residence)
- •F permit (provisionally admitted foreigners)
- •N permit (asylum seekers with work permit)
- •Cross-border commuters (G permit) - special rules per canton
NOT subject to withholding tax (ordinary procedure)
- •Swiss citizens
- •C permit (settlement permit) - regular tax return
- •Persons with a Swiss spouse (spouse's C permit is sufficient)
Withholding Tax in the Simplified Procedure (VAV)
Most private households use the simplified accounting procedure (VAV) for their household help. Withholding tax is charged at a flat 5% of gross wages - regardless of canton, income or marital status. The same applies to a bonus or Christmas money you pay on top.
This 5% is a lump sum covering all taxes: federal, cantonal and municipal. The household employee no longer declares this wage; if she files a tax return, she attaches the compensation office's certificate. For your own tax return, on the other hand, you need paperwork: which documents the tax office wants.
Withholding Tax in the Standard Procedure
Rates depend on several factors: the employee's canton of residence, marital status, number of children, church membership and gross income. As the employer, you must apply the correct tariff (A, B, C, D, etc.).
How Withholding Tax Deduction Works: Step by Step
As the employer of a foreign household employee, you are responsible for the correct process, from the monthly deduction to the year-end salary certificate under the ordinary procedure. Here is how it works:
Verify residence status
Check your employee's permit. Under the ordinary procedure: no C permit = subject to withholding tax. Under the simplified procedure you deduct the 5% for everyone. Obtain a copy of the permit.
Determine tariff (or choose VAV)
Simplified procedure: flat 5%. Standard procedure: determine the correct tariff (A, B, C etc.) from the employee's cantonal tax office.
Deduct monthly from wages
Deduct withholding tax from gross wages with each payment. The deduction must be shown separately on the payslip.
Remit to tax office / compensation fund
VAV: annually via the AHV compensation fund. Standard procedure: monthly or quarterly to the cantonal tax office. Respect deadlines - late interest applies!
Wage certificate or the fund's confirmation
In the standard procedure, issue a wage certificate at year-end showing the withheld tax separately. In the VAV you do not need one: the compensation fund sends your employee a confirmation of the withholding tax deduction, which she attaches to her tax return.
Automate withholding tax
Clino calculates the correct withholding tax for your household employee, creates payslips and delivers all documents for the tax office. CHF 19.90/month, all included.
Start now - 30 days freeFrequently Asked Questions About Withholding Tax
Do I need to deduct withholding tax as a private household?
How much is the withholding tax in the simplified procedure?
What happens if I forget to deduct withholding tax?
Can my household employee reclaim withholding tax?
What is the difference between VAV and standard withholding tax?
Does the 5% flat rate apply to cross-border commuters?
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