Coronavirus package of measures of the Federal Council

<p>Coronavirus package of measures of the Federal Council </p><p>On 20 March 2020, the Federal Council adopted a comprehensive package of measures to cushion the economic consequences of the spread of the coronavirus (COVID-19). These have now been specified in various Federal Council ordinances. Below is a brief overview of the most important measures. </p><ol><li><em>Short-time working compensation (KAE):</em></li></ol><p>With the instrument of short-time work compensation it is possible to compensate for temporary employment losses and to maintain jobs. The scope of the entitlement has been extended and the application process simplified. </p><ul> <li>Short-time work compensation can now also be paid to employees in fixed-term employment relationships, persons in the service of an organisation for temporary work, persons in an apprenticeship, employees similar to employers and persons who work in the business of the spouse or registered partner.</li></ul><ul> <li>Persons who, in their capacity as partners, as those who have a financial stake in the business or as members of a supreme decision-making body of the business, determine or can significantly influence the employer's decisions (so-called employer-like employees), as well as their assisting spouses and registered partners receive a lump sum of CHF 3,320 as short-time working compensation for a full-time position.</li></ul><ul> <li>Persons who work in the business of the spouse or the registered partner receive a lump sum of CHF 3,320 as short-time work compensation for a full-time position. </li></ul><ul> <li>The waiting period for compensation for short-time work is abolished. Companies no longer have to pay deductibles. </li></ul><ul> <li>The period for advance notification of the employer for short-time work in accordance with Art. 36, para. 1 AVIG will be abolished and the period of approval of short-time work will be extended from 3 to 6 months, i.e. the advance notification only needs to be renewed after 6 months. Advance notice may also be given by telephone, but must be confirmed in writing immediately. &nbsp;</li></ul><ul> <li>Employees no longer have to reduce their overtime before they can benefit from short-time compensation. </li></ul><p>Legal basis: <a>Ordinance on unemployment insurance measures relating to coronavirus (COVID-19)</a></p><p>Comes into force at 00.00 on 26 March 2020.</p><p>You can obtain current information from<a> AWA</a> and<a> SECO</a>.</p><ol><li><em>Deferred payment of social security contributions:</em></li></ol><p>Temporary, interest-free deferral of social security contributions (AHV/IV/EO/ALV) may be granted. In addition, companies can have the amount of the regular contributions on account adjusted to the AHV/IV/EO/ALV if the sum of their wages has fallen significantly. The same applies to self-employed persons whose turnover has collapsed.</p><p>Legal basis: <a>Ordinance on measures relating to coronavirus (COVID-19) to compensate for short-time working and to settle social security contributions</a></p><p>In force since 21 March 2020.</p><p>You can obtain more information from the relevant AHV compensation office. In Zurich, <a>apply to SAV Zurich for deferral of payments and reduction of payments on account</a></p><ol><li><em>Liquidity buffer in the tax area:</em></li></ol><p>Businesses should have the possibility to extend payment periods without having to pay interest on arrears. For this reason, the interest rate for VAT, customs duties, special excise taxes and incentive taxes will be reduced to 0.0 percent in the period from 21 March 2020 to 31 December 2020. No interest on arrears will be charged during this period. The same regulation applies to direct federal taxes from 1 March 2020 until 31 December 2020.</p><p>Legal basis: <a>Regulation on the temporary waiver of default interest in the event of late payment of taxes, incentive taxes and customs duties</a></p><p>In force since 21 March 2020 and valid until 31 December 2020.</p><ol><li><em>Emergency aid by means of guaranteed COVID bridging loans:</em></li></ol><p>SMEs affected by liquidity bottlenecks due to the COVID 19 pandemic (sole proprietorships, partnerships and legal entities) can apply quickly and easily for a one-off bridging loan of up to 10% of turnover up to a maximum of CHF 20 million from their respective banks and Postfinance (if they are their existing customers). </p><ul> <li>Bridging loans of up to CHF 500,000 are 100% secured by the Swiss Confederation. They are granted interest-free and are paid out unbureaucratically within a short period of time. Such bridging loans are also available to start-ups. However, these are limited to a maximum of CHF 50,000.</li></ul><ul> <li>Bridging loans exceeding the amount of CHF 500,000 are 85% secured by the Confederation. Such loans require a comprehensive bank examination, whereby the lending bank participates in the loan with 15 %. The current interest rate is 0.5 %. </li></ul><ul> <li>It should be noted that companies with sales in excess of CHF 500 million in 2019 are not covered by this program.</li></ul><ul> <li>The loans are generally to be fully amortised within 5 years.</li></ul><ul> <li>As of today, credit applications can be applied for via the website <a>https://covid19.easygov.swiss</a>and submitted to your own bank and to Postfinance (only for existing customers).</li></ul><p>Legal basis:<a> Regulation on the granting of loans and joint and several guarantees in the wake of the coronavirus (COVID-19)</a></p><p>Comes into force at 00.00 on 26 March 2020.</p><ol><li><em>Compensation for loss of earnings for self-employed persons:</em></li></ol><p>Self-employed persons who suffer loss of earnings due to official measures to combat the coronavirus will be compensated in the following cases, unless other compensation or insurance benefits exist. </p><ul> <li>as a result of the loss of third-party care for their children, which is due to official orders in connection with the corona epidemic</li></ul><ul> <li>medically or officially ordered quarantine</li></ul><ul> <li>Closure of an independently managed, publicly accessible business.</li></ul><p>Compensation is regulated in accordance with the German Income Compensation Act (EO) and paid as a daily allowance. This corresponds to 80 percent of income and amounts to a maximum of 196 Swiss francs per day. The number of daily allowances for self-employed persons in quarantine or with care duties is limited to 10 and 30 respectively.</p><p>Legal basis: <a>Ordinance on measures in the event of loss of earnings in connection with coronavirus (COVID-19)</a></p><p>Retroactively in force since 17 March 2020.</p><p>You can obtain more information from the AHV compensation fund responsible, e.g. at the SVA Zurich under <a>Coronavirus: Compensation for loss of earnings for self-employed persons</a></p><ol><li><em>Compensation for loss of earnings for employees:</em></li></ol><p>In the event of an interruption of employment due to:</p><ul> <li>loss of external care for their children, which is due to official orders in connection with the corona epidemic</li></ul><ul> <li>medically or officially ordered quarantine</li></ul><p>It should be noted that the entitlement will only start on the 4th day on which all requirements are met, i.e. on 19 March 2020 at the earliest, as schools in Switzerland are officially closed since 16 March 2020.</p><p>Compensation is regulated in accordance with the Income Compensation Act (EO) and paid as a daily allowance. This corresponds to 80 percent of income and amounts to a maximum of 196 Swiss francs per day. For persons undergoing quarantine measures, the compensation is limited to 10 daily allowances.</p><p>Legal basis: <a>Ordinance on measures in the event of loss of earnings in connection with coronavirus (COVID-19)</a></p><p>Retroactively in force since 17 March 2020.</p><p>You can obtain more information from the AHV compensation fund responsible, e.g. at the SVA Zurich under <a>Coronavirus: Compensation for loss of earnings for employees</a></p><p>If the employer has continued to pay wages, he is entitled to compensation, see e.g. at the SVA Zurich under <a>Coronavirus: Compensation for loss of earnings for employers </a></p>