Summary
Self-employed individuals do not record daily allowances as income, but rather in a special subaccount. These daily allowances must be reported on the tax return as income from compensation for loss of earnings.
The income of a self-employed individual is the company’s profit. Unlike their employees, they do not receive a defined salary. Therefore, self-employed individuals should not be entered as employees in KLARA Payroll.
Nevertheless, it is possible for a social insurance provider to pay daily allowances for a work interruption affecting a self-employed business owner. These may include accident or sickness daily allowances, for example. In connection with the company closures ordered by the Federal Council as a result of the COVID-19 pandemic, EO compensation for self-employed individuals was also introduced: Corona compensation for loss of earnings.
Procedure for Daily Allowance Payments
If you receive a daily allowance payment, proceed as follows:
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Record the incoming payment:
- Record the incoming payment in the KLARA bank reconciliation directly to the private account.
- To do this, select the “Private current account” option under “Other entries.”
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Create a subaccount:
- Create a separate subaccount for daily allowance benefits to ensure transparency in the balance sheet.
- Open your account management. In the first KLARA financial year, you will find it in the opening balance sheet; in subsequent years, under the financial years.
- There, under account 2850 “Private,” create an entry for daily allowance benefits.
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Record the entry in the bank reconciliation:
- Record the entry in the bank reconciliation after the subaccount has been created.
Important Information
- Do not forget to report these daily allowance benefits on your tax return as income from compensation for loss of earnings.
- Your fiduciary advisor or cantonal tax authority will know where these benefits must be reported on the form for your canton of residence.
FAQ
Q: What are daily allowances for self-employed individuals?
A: Daily allowances are wage replacement benefits paid to self-employed individuals in the event of work interruptions, such as those caused by illness or an accident.
Q: How do I record daily allowances in KLARA?
A: Daily allowances are not recorded as income, but rather in a special subaccount for daily allowance benefits.
Q: Do I have to report daily allowances on my tax return?
A: Yes, daily allowances must be reported as income from compensation for loss of earnings on the tax return.