Are you an agency, contractor or employer operating in the Swedish market? In Sweden, TCP offer our standard payroll services, where contractors are employed on our monthly payroll and the employer has a strictly work-based relationship. We also help employers, agencies and contractors to negotiate the complexities of the tax system, especially the tax relief for foreign personnel, SINK and the special rules on expenses.
When does a freelancer become fully employed? We can help both individuals and employers to negotiate Swedish legislation.
Sickness pay in Sweden is slightly lower than the salary. Everyone who has worked a month or 14 days in a row for the same employer is entitled to sickness pay. In Sweden you don’t get paid for your first day of sickness . For day 2-14 you get paid 80% of you salary and from day 15 the employee will have to turn to the social security system.
Annual leave by law is a minimum of 25 days per year.
Contractors may benefit from two different tax rulings. Tax relief for foreign key personnel and SINK (special income tax for foreign nationals). Tax relief for foreign key personnel is available for employees with a monthly salary of more than two times the price base amount for the calendar year in which the work commences. For employees working in Sweden for less than six months, the employee can be taxed as per the rules of SINK. This includes 20% tax on income and benefits, no deductions, and the employee doesn’t have to declare his or her income in Sweden.
Other than business expenses and mileage there is not much that can be paid out tax free to an employee. An employee can however do some deductions in their income statement for double housekeeping. The condition is that they stay overnight at the place of work, and that the distance from their primary residence is more than 50km from both work and the secondary residence. For the first month deductions can be made for food and petty costs with the actual amount, or a flat amount of 66 SEK per day.
We can smooth out all the processes and procedures necessary to making everything run smoothly between everyone in the working relationship –
- Removing restrictions on capital, debt, contractor concentration and turnover/fees
- Entering into contracts
- Producing payslips from timesheets
- Processing and maintaining payroll
- Invoicing and credit control
- Making sure individuals are paid every week or month
- Providing indemnity insurance cover
- Paying agreed margins
- Offering professional support and assistance
TCP helps everyone to enjoy smoother, more efficient working relationships, reduced costs and with fewer restrictions. We simplify the entire process for every party, from the individual to the agency to the client company, with everyone retaining their own identity. This allows everyone involved to concentrate on doing what they do best.
If you are a UK citizen living in Sweden please see the following link which provides information relating to Brexit and any necessary steps you need to take to ensure you can continue to live and work in Sweden : https://www.government.se/government-policy/brexit/what-does-brexit-mean-for-the-citizens-who-are-particularly-affected
You should continue to check the relevant country websites for any future changes to the position.
To find more about working in Sweden, take a look at our blog post – Working in Sweden. What do you need to know?