How to: Simplify the management of freelancers and consultants in Switzerland through payrolling

Have you ever had to recruit freelancers or independent consultants and handle all the administrative responsibilities that come with it? Or maybe you’re dealing with this right now? The good news is that hiring external talent is one of the best solutions for flexibility, allowing you to leverage specialized skills to meet your project-specific needs.

However, in Switzerland, managing this is anything but simple. Regulations vary from canton to canton, imposing complex administrative obligations on companies—work permits, social insurance, taxes…the list goes on.

This is where payrolling comes in.

I. What is Payrolling?

As we detailed here, payrolling is a tripartite contractual relationship involving a payrolling company, a consultant, and the client company for which the consultant’s work is performed. Its advantage lies in its high flexibility, offering an excellent compromise between employment and independence. This makes payrolling an attractive option for professionals who wish to work as independent consultants. It allows them to maintain both stability and compliance, in terms of social security and financial matters.

II. Why Use Payrolling in Switzerland?

In Switzerland, the strict requirements that companies face when working with freelancers and independent consultants can be daunting and may even hinder recruitment.

Take mandatory insurance, for instance: every consultant must be covered for accident risks, both work-related and non-work-related. Retirement contributions are also mandatory. Thus, these requirements vary according to specific rules set by each canton. Then, an international consultant must obtain a work permit based on the mission and its duration.

These complex procedures can be delegated through payrolling. By outsourcing these tasks, companies offload these obligations while ensuring flawless compliance. This way, there’s no need to navigate the specificities of each canton. Not only does this reduce the risk of penalties for non-compliance, but it also saves considerable time and resources. For example, a company based in Zurich can hire a foreign consultant for a project in Geneva without having to handle the local formalities itself.

III. What benefits or your business?

Thanks to payrolling, companies benefits from several concrete advantages:

• Simplified administrative processes. All necessary documents, from employment contracts to pay slips and tax and social security declarations, are managed centrally. For instance, when a company hires a foreign consultant, it doesn’t need to handle source tax or health insurance contributions—these formalities are entirely managed by the payrolling provider.
• Risk reduction. By delegating administrative management, the company limits the risk of costly errors. A simple calculation error in social security contributions or a failure to declare can lead to significant penalties. Payrolling ensures that every managed aspect complies with current regulations.
• Transparency and accessibility of documents online. With a secure digital platform, the company and the consultant can access contracts, pay slips, and statements at any time. This real-time traceability ensures complete transparency, allowing both parties to track every stage of the assignment—from the consultant's registration to the end of the contract. This centralized online management also facilitates audits and administrative checks.

To conclude

Simplifying the management of freelancers and consultants in Switzerland is not just a time-saver; it's a true lever for security and performance for companies.

Payrolling allows you to delegate complex administrative tasks, ensure impeccable compliance, and provide essential transparency for smooth monitoring.

Need help or advices?

At Helvetic Payroll, our experts aim to assist and advise you on all payrolling-related matters. We offer you a comprehensive solution that meets Swiss requirements. Contact us for personalized advice.