Reconcile a fictional payroll without importing statutory rates
A fictional payroll has gross compensation of CHF 6 000, employee deductions of CHF 750 and separately stated employer contribution costs of CHF 600. These are supplied totals for a classroom reconciliation, not a statement of actual statutory percentages or an individual's Swiss coverage. The payroll clerk sends the employee the correct net amount but then treats that payment as the entire employer cost. Later, when recorded contribution liabilities are paid, the clerk proposes recognizing the same contribution expense again. The case supplies no other benefits, reimbursements, taxes or adjustments. The objective is to distinguish gross compensation, employee withholding, employer cost and settlement while preserving a clear and appropriately protected record of the amounts and assumptions.
1. Calculate net pay and total employer cost under the assumptions.
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Net pay is CHF6 000−CHF750=CHF5 250. Employer total cost is CHF6 000+CHF600=CHF6 600. These measures differ because deductions and employer costs have different roles.
2. Explain the later settlement and the relevant limitation.
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Payment clears the already recorded contribution liabilities and reduces bank funds; it should not duplicate the original expense. Actual Swiss contributions require the relevant current systems, bases, coverage and employee facts rather than these fictional totals.