External Payroll Audit

The growing complexity of remuneration structures — including employee share plans, benefits in kind, company cars or expense reimbursements — makes payroll management increasingly challenging for employers.

Errors or inconsistencies may result in significant exposure in the event of audits related to social security (AVS), VAT, withholding tax or direct taxation. These risks apply equally to companies managing payroll internally and to those outsourcing payroll processes to third party providers.

A 360° external payroll audit

Our External Payroll Audit is designed for HR managers, finance teams and business leaders seeking reassurance over payroll processes and compliance.

This service combines the expertise of our Tax and Outsourcing (Accounting & Payroll) teams to deliver a comprehensive and independent review of how payroll is managed across the organisation.

Scope of our External Payroll Audit

Our review may include, depending on the client’s needs:

• Social security accounting and postings (AVS, LPP, LAA, LAAC, APG)
• Reconciliation between payroll records and accounting entries
• Annual payroll reconciliations and consistency checks
• Review of payslips and Swiss salary certificates (incl. appendices)
• Review of employee participation and incentive plans
• Verification of withholding tax treatment
• Review of expense policies and settlements
• Analysis of permanent establishment risks (Switzerland / abroad)
• Review of cross border and posted workers
• Verification of collective labour agreements
• Review of work permits and compliance
• Review of private vehicle benefits and VAT treatment
• Family allowance calculations and application

Objectives and outcomes

The objective of our External Payroll Audit is to:

• Identify potential tax and social security exposures,
• Reduce the risk of adjustments following audits,
• Ensure compliance with Swiss and cross border regulations.

Where relevant, we also provide practical recommendations to optimise payroll processes. A targeted review of specific areas is possible; however, a full 360° review is generally recommended for a comprehensive risk assessment.

Download our "Audit External Payroll" factsheet