As of 1 January 2008, simplified administrative procedures for micro-enterprises were implemented following the introduction of the “Federal Act on Measures to Combat Illegal Employment” (IEA).
The aim of this measure was to make it significantly easier to carry out reporting and accounting tasks in respect of wage earners, correctly and in compliance with the legislation. Normally, an employer has to deal with at least three institutions – i.e. the OASI Compensation Office (including the Family Allowances Office), the Accident Insurance Office and the Tax Administration – even if their payroll comes to quite a small sum. It is therefore very tempting for employers who only occasionally employ someone, or mainly recruit people for short-term or limited tasks, not to bother with all the administrative work involved (thus making themselves liable to prosecution).
The above-mentioned administrative simplifications have therefore made compliance easier by replacing these three institutions with a single office: your OASI Compensation Office.
In concrete terms this means that the administration relating to OASI·IV·LEC, ALV, FAK, UV and the tax authorities (tax deducted at source) can be performed by the relevant OASI Compensation Office, i.e. by a single administrative centre. Accounting and payment take place once a year. The relevant Compensation Office is generally the one with which the employer/self-employed person is registered, or, in the case of a person not in gainful employment or registering for the first time, the cantonal Compensation Office.
The following three conditions must all be met before an employer can use this accounting procedure:
Important: As of 1 January 2018, stock corporations (AG, GmbH, etc.) and cooperatives are no longer allowed to use the simplified accounting procedure.
Our Compensation Office will be happy to provide further information on request.