Sweden Payroll Services
Swedish Payroll
Successful international expansion depends on making the right moves from day one. This is vital for foreign companies establishing a presence and operating payroll in Sweden – a European Union (EU) member, although not part of the Eurozone and uses the Swedish krona (SEK) as its currency.
The mysteries of Swedish taxation laws can be daunting – but not for the payroll specialists at Bradford Jacobs. We remove the worry of complying with Swedish taxation, payroll, and employment laws to safeguard your expansion plans with our Professional Employer Organization (PEO) and Employer of Record (EOR) platforms.
We provide complete answers to every question your company will encounter before you move into Sweden’s economy. We navigate the administration of the Swedish payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities.
What Swedish Payroll Options are available for Companies?
Remote payroll: This option allows businesses to operate under a single payroll system, by adding employees in Sweden to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
Internal payroll: You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Sweden. However, this does require hiring dedicated HR staff who understand Swedish employment and compliance laws.
Sweden payroll processing company: If you are considering outsourcing, then working with a Swedish payroll company will help in processing your payroll – but not when it comes to compliance.
Sweden payroll outsourcing: However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Sweden. We lift the administrative stress from your shoulders so you can focus on what you do best.
Sweden Payroll Services
Companies expanding their operations into Sweden open a wealth of opportunities for expansion throughout the European Union and further afield – but challenges come alongside the potential benefits. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll regulations and income tax regulations are areas where you cannot afford mistakes.
Bradford Jacobs’ Employer of Record (EOR) payroll solutions will navigate around these potential pitfalls effectively and efficiently by putting into action our comprehensive knowledge of tax and payroll regulations.
Foreign companies need not establish a legal entity in Sweden to hire staff, but they must register as an employer to pay taxes and social security contributions.
However, taking the next step and running payroll in Sweden requires an in-depth knowledge of employment, payroll, and taxation laws – and keeping up to date with changes. As part of our service, Bradford Jacobs files returns, and remit associated payments for tax and social security contributions directly from our payroll system to the relevant authorities.
Outsourcing your payroll in Sweden will streamline your operations by dealing with the following:
- Registering employees with the Swedish Tax Agency (Skatteverket) to receive a personnel identity number (personnummer) and for assessing entitlements such as maternity, pension, sickness, and unemployment benefits
- Registering employees with the Swedish Tax Agency for withholding and remitting their income tax and social insurance payments
- Registering with the Swedish Social Insurance Agency (Fӧrsäkringskassan)
- Companies posting employees in Sweden must register with the Swedish Work Environment Authority (Arbetsmiljöverket) if the assignment lasts more than five days. Failure to register risks a fine of SEK 20,000 (€1,952, US$2,209)
- Complying with payroll regulations to transfer employee’s salary electronically by the 25th of the month, the 20th in December
- Ensuring employees receive written agreement or formal contract within 30 days of starting work to comply with Swedish labor legislation
Additional payroll support includes:
- Reconciling state and municipal taxes to assess for potential refunds or extra payments
- Calculating employees’ monthly salary and sending their pay slips
- Submitting employees’ and employers’ monthly wage tax returns and providing payroll statements to the authorities as required
- Creating and submitting your company’s annual accounts and year-end statements
- Creating payment schedules for salaries and insurance contributions
- Ensuring accurate personal income tax returns are filed for you and your employees, where required
- Supplying an annual report to the tax authorities
What is required to set up Sweden Payroll?
Companies expanding into Sweden must satisfy strict legal requirements with running payroll, in addition to complying with minimum wage, overtime pay and employee benefits in addition to any directives from the European Union (EU).
Foreign companies looking to set up a legal entity in Sweden typically choose to establish a limited liability company, known as an aktiebolag, and regulated by the Swedish Companies Act (aktiebolagslag). Companies deciding to run their own payroll in Sweden must take the following steps:
- Register the company with the Swedish Companies Registration Office (Bolagsverket) and the Tax Agency (Skatteverket) for income and corporate taxes, Value Added Tax, if applicable, and F-tax for self-employed, if necessary
- Minimum share capital of SEK 25,000 (€2,440, US$2,762) to be deposited in the bank to receive bank’s deed of deposit
- Possible extra permits or registrations according to the type of business being incorporated
- Register names and details of all ‘beneficial owners’, i.e., those who own or control the limited company
- Registration of employees with the Swedish Tax Agency (Skatteverket) to receive a personnel identity number (personnummer) for assessing entitlements such as maternity, pension, sickness and unemployment benefits
- Registration with the Swedish Tax Agency for withholding and remitting employees’ income tax
- Registration with the Swedish Social Insurance Agency (Fӧrsäkringskassan)
- Companies posting employees in Sweden must also register with the Swedish Work Environment Authority (Arbetsmiljöverket) if the assignment lasts more than five days. Failure to register risks a fine of SEK 20,000 (€1,952, US$2,209)
- Compliance with payroll regulations to transfer employees’ salary electronically by the 25th of the month, the 20th in December
- Ensuring employees receive written agreement or formal contract within 30 days of starting work to comply with Swedish labor legislation