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.