# Posting Swiss withholding tax: a simple CHF example

> From gross to net and payment to the canton: accounting entries to record and reconcile withholding tax without duplicating salary expense.

Source: https://www.bemytalent.com/en/posting-withholding-tax · updated 2026-11-08 · other languages: [fr](https://www.bemytalent.com/fr/comptabiliser-impot-source.md) · [de](https://www.bemytalent.com/de/quellensteuer-verbuchen.md) · [it](https://www.bemytalent.com/it/contabilizzare-imposta-fonte.md)

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## Posting Swiss withholding tax: a simple CHF example

By Michael Dusong · Updated 08.11.2026

When posting **withholding tax**, separate salary expense, amounts owed to each recipient and payments. Tax withheld from salary is a liability to the tax authority, not a second salary expense.

The employer must deduct and remit the relevant tax; [Vaud explains these obligations](https://www.vd.ch/etat-droit-finances/impots/pour-les-employeurs/impot-a-la-source/retenue-dimpot-a-la-source). The entries below are a **teaching example**, to be adapted to your chart of accounts and actual statement.

### Example: gross to net

Assume **CHF 5,000 gross pay**, **CHF 500 employee social deductions** and **CHF 300 withholding tax**. Net pay is **CHF 4,200**. All amounts are fictional. Employer contributions, expenses and other items are omitted for clarity; they need separate treatment in real payroll.

| Account by purpose | Debit CHF | Credit CHF |
|---|---|---|
| Salary expense | 5,000 | — |
| Social insurance payable | — | 500 |
| Withholding tax payable | — | 300 |
| Net salaries payable | — | 4,200 |
| Total | 5,000 | 5,000 |

The **debit** recognises the expense here. The **credits** allocate what the company still owes. Use your own account numbers; the labels describe their purpose.

### Record payments without duplicating expense

The net salary payment is **debit Net salaries payable 4,200 / credit Bank 4,200**. The tax payment is **debit Withholding tax payable 300 / credit Bank 300**.

The latter clears a liability rather than creating another CHF 300 expense. If the cantonal statement includes a collection commission, correction or other adjustment, reconcile it separately rather than silently changing the employee deduction.

### Reconcile each month

Compare deductions on approved payslips, the return submitted to the canton, the tax-account balance and bank payments. Match periods: a November payment may settle an earlier return.

Simple example without adjustments: opening liability of CHF 200, plus CHF 300 withheld, less CHF 200 paid, leaves **CHF 300 payable**. A difference may reflect timing or a corrected return rather than a calculation error, but it still needs explanation.

### How BMT makes the work easier

The approved payslip is linked to its accounting entries. Approval preserves calculation data and checks the consistency of accounting amounts. Net pay, deductions and liabilities can be compared in the same file before preparing payments.

Read more: [calculation guide](https://www.bemytalent.com/en/swiss-withholding-tax) · [correction guide](https://www.bemytalent.com/en/correcting-withholding-tax).

### FAQ

#### Why not record only the net payment?

That would hide gross expense and social and tax liabilities, making reconciliation with payroll difficult.

#### Should withheld tax be added to employer contributions?

Not in this example: it is deducted from employee remuneration. A specific employer-paid arrangement needs its own treatment.

#### Is a non-zero withholding-tax balance abnormal?

No. A liability may await its due date. Its balance must match outstanding returns and transactions.

Your accounting almost runs itself.