Cross-border workers
Cross-border commuters work in Switzerland and live abroad; which state taxes their income and which social insurance applies follows the double taxation treaty with the state of residence and the European coordination rules.
Definition
The rules differ by neighbouring state, and with the spread of home office a second variable has appeared: the share of work performed in the state of residence. If it crosses a threshold, responsibility for tax or social insurance can shift.
For payroll that means: marking a person as a cross-border commuter is not enough. You need the state of residence, the permit type, possibly a residence certificate, and the share of working days per country — data to be maintained continuously, not captured once.
Where to read it
What the software must be able to do
Check whether the state of residence and working days per country can be held on the employee record and whether withholding tax follows from it. If it is a side calculation in a spreadsheet, it will be forgotten at the next change.
Checked Aug 2026
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