What is a payroll company?

A payroll company can be an alternative for the ANobAG model. In this case, the employee is employed by the payroll company in Switzerland. The payroll company then invoices the employer based on the employee’s performance and then pays the employee.

The payroll company takes care of paying the social security contributions in the same way as an “ordinary Swiss employer”. The payroll company therefore pays the net wage to the employee after deducting the employee contributions and charges the “employer” abroad the total wage costs (including social security) plus a (usually) percentage-based commission.