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Most frequently asked questions regarding payroll in Sweden

  • What are the rules for vacation in Sweden?
    While the legal minimum for vacation days is 25, white-collar workers commonly receive 30 days. As a result, overtime is frequently negotiated and excluded from the collective agreement. The law is always the minimum requirement that companies must follow. But many non-union companies often follow it anyway. The purpose of this is to remain competitive in the labor market and not offer less than other similar companies. Depending on the type of employment, such as hourly or project-based, different holiday contracts apply, which are calculated accordingly.
  • How many vacation days can you save?
    You may save the paid days that exceed 20. This is because Swedish law says that you must make up these 20 days during the summer. Preferably then coinciding. An agreement can be made with the employee about savings days, when for some reason he wants to save for a longer trip or has an upcoming parental leave where the person does not earn vacation. Keep in mind that the insurance company will not take kindly to this if the person is on sick leave due to exhaustion. These 10 days that you may save, may be saved for a maximum of 5 years. These days should then be used. If not, they must be paid out after the next vacataion year change. It is the employer's responsibility to ensure that the employee uses the vacation days that they are not allowed to save.
  • What is vacation pay?
    Holiday pay in addition to your monthly salary is by law 0.43% of your monthly salary, per day. According to the collective agreement 0.8%. If you have a monthly salary of SEK 30,000, you get an extra SEK 240 per day.
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  • What are the vacation year rules?
    April to March is the most common holiday year. But among white collars, it is becoming increasingly common to use January to December. You normally earn your vacation until the second year. This means that in year one you will not receive paid holiday. As a policy, companies can then offer, if desired, advance vacation to the new employees.
  • Vacation year earnings?
    Normally, you earn days in year one and they are then paid in year two. But overlapping rules are becoming more common. This means that the employees receive a full pot of paid days in year one. The problem is that the person who has a debt to the company, if he quits, has not earned enough to cover the debt. Then he becomes liable for repayment.
  • What are the rules about pre-paid vacation days?
    The number of days varies and differs from company to company. Some give 30 full days in advance, others maybe only 10 each. Remaining days up to 30 will then be unpaid. Keep in mind that if the person is hired after the summer, they probably already had holidays at their previous job and do not need to get as many as those who start their employment before the summer.
  • What are the pros and cons of coinciding vacation years?
    Absence due to illness gives the right to paid vacation and is the basis of vacation pay for a maximum of 180 sick days (calendar days) per accrual calendar year or if the absence is due to a work-related injury. The right to paid holiday for sick days ends when the employee has been absent in whole or in part due to illness during an entire earning year, without a longer break in the absence than fourteen consecutive days, Section 17 of the Holidays Act.
  • Do you still earn vacation days during parental leave?
    According to the Holidays Act, 120 days of parental leave constitutes holiday pay. This corresponds to approximately four months of parental leave, where you earn vacation days as usual. If you are the sole guardian, it is 180 days.
  • Can you be absent but still take vacation?
    In short: Yes, you can take vacation while you are on sick leave. If you are on sick leave part-time, you apply for a semester just as usual. If you are on full-time sick leave, you cannot use the leave in the same way, but it may be possible to come to an agreement with the employer on the matter. In detail: If you are on sick leave part-time If you are on sick leave part-time and work part-time, you can take the holiday in the same way as full-time employees. You then apply for the semester as usual with your employer. How many paid vacation days you are entitled to depends on how much you earned in the previous year. The term can only be taken out for whole days. This also applies if you only work half days. If you take a week's vacation, you use five vacation days. But you also receive sickness benefit from Försäkringskassan for the time you are on sick leave. Since holiday pay counts as already earned pay, the payment of sickness benefit is not affected. You can therefore receive both holiday pay for the holiday days you take and sickness benefit for the time you are on sick leave, for the same period. Example: Tina is on sick leave at 50%. She takes a week's vacation, which is five full vacation days that she earns in the previous year. Therefore, Tina receives holiday pay for five full days and sick pay as usual at 50% for that period. If you are on full-time sick leave If you are on full-time sick leave, it works a little differently. There do not appear to be any legal barriers to taking accrued holiday pay while you are on full-time sick leave. However, you do not benefit as much from taking vacation when you are not working. Consider whether it is really worth withdrawing earned semester during sick leave. The holiday is for recreation and for employees to have time to rest. Those who are on sick leave full-time and for a long time do not have the same opportunity to do so. Therefore, it may be wise to save your earned leave until you actually have a use for it. If you still want to take holiday pay during the sick leave, you must talk to your employer about whether it is possible to do so. You can also contact your trade union and ask for advice on how to manage your semester in connection with sick leave. For your sickness benefit, it should make no difference whether you take the holiday or not. According to The Social Security Office (Försäkringskassan), you can still receive sickness benefit at the same time as you receive holiday pay. The sick leave is based on holiday pay All employees are entitled to 25 vacation days each year. Whether it is a paid semester depends on how much you worked during the earning year, i.e. the year before you take your semester. The accrual year and the holiday year start on 1 April and end on 31 March. When you are on sick leave and receive sickness benefit from The Social Security Office (Försäkringskassan), you still earn certain holiday days until the next holiday year. The sick leave is holiday pay for 180 days. This means that if you have been on full-time sick leave and then come back to work, you have earned paid vacation days even if you have not worked for a while. If you are on sick leave for longer than 180 days, you will receive fewer earned vacation days. Think of! If you are on sick leave due to a work-related injury, there is no time limit of 180 days. Then the entire earning year is holiday pay-based. If you are continuously on sick leave for an entire earning year, you no longer earn any vacation days if you continue to be sick. As the earning year applies from 1 April, the sick leave must have lasted from 1 April one year to 31 March of the year after you lose the right to holiday earnings. Example: Frida was on sick leave in September 2019. Until March 31, 2020, she earns paid vacation days just as usual. Between 1 April 2020 and 31 March 2021, she earns holiday pay for 180 days if she is still on sick leave. After that, Frida has been on full-time sick leave for a full earnings year. Therefore, she loses her right to holiday earnings from 1 April 2021.
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  • Do you still earn vacation days during sick leave?
    Absence due to illness gives the right to paid vacation and is the basis of vacation pay for a maximum of 180 sick days (calendar days) per accrual calendar year or if the absence is due to a work-related injury. The right to paid holiday for sick days ends when the employee has been absent in whole or in part due to illness during an entire earning year, without a longer break in the absence than fourteen consecutive days, Section 17 of the Holidays Act.
  • Can an employer force an employee to cancel their vacation?
    If you are on holiday, you may be forced to cancel it if the employer calls. In order for the employer to be allowed to do this, special reasons are required, for example that the entire business falls if you do not work. The interrupted vacation will be paid out at a later date and the employer is obliged to compensate you for the financial damage that has occurred. For example, it could be rebooking costs for a trip you were forced to cancel.
  • Can the employer deny vacation?
    Yes, an employer has the right to deny you holiday. However, you as an employee are always entitled to at least 25 vacation days. According to the main rule of the Holiday Act, you have the right to take four of these five weeks during a continuous period between June and August. An employer can refuse holidays as long as the main rule is followed An employer has the right to deny you holiday as long as the employer follows the main rule and gives you leave for at least four consecutive weeks during the summer. If you and your employer cannot agree on when you can take vacation, the employer has the final say. The employer must notify whether the holiday is granted or not at least two months before the holiday begins. If the employer denies your vacation without a valid reason, you may have grounds to file a complaint or take legal action.
  • The employer can require that vacation be taken?
    An employer can require you to take vacation, provided you get at least four consecutive vacation weeks during the summer. Examples of cases when the employer can demand that vacation be taken are if the business closes again for a certain period. Nor can an employer require you as an employee to take unpaid leave. The employer must always be able to offer work within the company's operations.
  • What is vacation debt?
    Holiday pay liability refers to the total amount of earned holiday pay by employees, which companies must continually record. As employees earn vacation days, the holiday pay debt increases, but it decreases for each day that an employee takes as paid holiday. Allowing employees to save vacation days for an extended period can lead to an increase in vacation pay costs for the company. As most employees receive wage increases over time, the holiday pay debt accumulates and becomes more expensive when the holiday pay is eventually paid out based on their current salary.
  • What is vacation allowance in advance?
    In short: Vacation in advance means that you may keep your regular salary during unpaid vacation days (when you take vacation in advance), even though you have not earned vacation pay, but at the same time incur a debt to the employer. Normally, you will not receive holiday pay for these days. In detail: You cannot demand to receive or be forced to take advance vacation Advance vacation is not something you can demand, nor is it something you have to agree to, if you don't want to. There is no obligation for you to either take unpaid leave or accept advance leave if you do not wish to. If you accept, you and your employer need to agree on the number of days. It is rarely more than the number of unpaid vacation days to which you are entitled. The agreed advance holiday days are not something you can save. In the case of unpaid leave, you have an obligation to notify the employer how many of these days you intend to take during your leave. About debt in case of early vacation Vacation in advance means that you do not receive a salary deduction if you take your unpaid vacation days. Instead, a debt arises to your employer that corresponds to the deduction that your employer would have made if you had taken unpaid vacation days. You are obliged to pay that debt again, should you resign yourself. That's why it might be good to think twice before you say yes. The debt is written off after five years. If you are covered by a collective agreement, the five years are counted from your first day of employment. Otherwise, the five years are counted from the time you took the advance holiday. The debt remains in its entirety until it is written off. Deductions are not made if your employment ends due to lack of work, illness or if the employer grossly disregards its obligations towards you. The debt you incurred by taking advance vacation is often reported on the salary statement either in the form of the number of advance vacation days or as the total debt in kroner. If the debt is expressed in the number of days, you calculate the amount in the same way as you calculate the deduction for unpaid vacation days with the monthly salary you had when you took the advance vacation. Repayment of advance holiday debt If you resign before the debt for the advance holiday is written off, the entire debt must be paid back to your employer. Normally, the debt is deducted (set off) from your final salary. Please note, however, that settlement of advance holiday may only be made against holiday compensation and not against salary, unless otherwise stated in the applicable collective agreement or you yourself agree to it. It is the actual debt in kroner for advance holiday that must be settled against the holiday allowance, that is, it is not a day-to-day settlement.
  • What is the daily vacation pay when you are on vacation?
    The daily allowance on vacation is 4.6% of your monthly salary. It comes from working 2080 hours per year spread over 12 months = 173.33 hours per month. A working day is 8 hours / 173.33=4.6% This sum equals your salary. The vacation allowance is 0.43% per day. It is an extra allowance that traditionally exists so you get some extra pocket money for the vacation. Normally among white collars, this allowance is 0.8%. There are deviating ways of calculating daily compensation in some collective agreements, but this is normal for white-collar workers.
  • What are the rules for vacation in Denmark?
    Denmark introduced a new Holiday Act in September 2020, allowing employees to use their vacation days in the same year they earn them, no matter how long they've been working. Even new employees can take paid leave in their first year, instead of waiting until the next. Holidays are earned from September 1st to August 31st, totaling 25 days per year, which is equivalent to 2.08 days per month. These vacation days can be used once they're earned but must be used by December 31st of the same year they were earned. Employees can transfer or receive payment for up to 5 unused vacation days in January if they've already used 20 days. The Danish Holiday Act counts working days from Monday to Friday. Employees also earn a holiday allowance of 1%, which can be paid out either in installments in May and August or in the month the holiday is taken. Additionally, companies have the option to offer "Feriefri" days, care days, or a sixth vacation week, which are governed by internal rules and not regulated by the Holiday Act. Full-time employees receive their regular salary during paid holidays, while hourly employees need to apply for holiday pay through the "Feriekonto" system, linked to their specific vacation days.
  • What are the rules for vacation in Norway?
    Employees are entitled to four weeks and one day (21 days) of holiday, along with 10.2% holiday pay. Some companies offer five weeks of holiday with 12% pay. Employees can carry over 10 vacation days to the next year. Holidays are counted from Monday to Friday, meaning one holiday week equals 5 working days. May 1st and 17th are paid holidays, as well as other standard international public holidays. Employees not in full employment for the year can opt out of holiday time if the pay doesn't cover the loss. During the main holiday period from June 1st to September 30th, employees can take three consecutive weeks off. The employer decides the timing, but discussion is allowed. Remaining 6 vacation days can also be taken consecutively, with timing decided by the employer. Holiday pay is typically given out at once, usually in June. Employers must ensure employees take their holidays, even if they're on long-term sick leave.
  • What are the rules for vacation in Finland?
    The holiday credit year runs from April 1st to March 31st of the next year. Employees earn holidays by working, based on either the 14 days rule or 35 hours rule. Depending on how long they've been employed, employees get 24-30 vacation days per year. If an employee doesn't work enough days in a month for the 14-day rule, they still earn holidays if they work at least 35 hours. The employer decides when employees can take their holidays, but employees can request specific timing. Employees should be informed about holiday timing at least a month in advance, but in some cases, this can be shortened to two weeks. Normally, 24 days are granted during the holiday season, with the rest during the winter holiday. The number of leave days is determined by the collective agreement, which also decides if Saturdays count as vacation days, making a week either five or six days.
  • What are the employer's payroll tax reporting requirements?
    Employers are required to report payroll taxes and contributions to the Swedish Tax Agency on a monthly or quarterly basis, depending on the size of the company. How is income tax calculated in Sweden?
  • How often do I need to report to the Swedish Tax Agency?
    Employers are obliged to report salary information to the Swedish Tax Agency monthly or quarterly, depending on the size of the company. You can be registered to declare the VAT once a year, every quarter or every month. The VAT must be paid into the tax account at the Tax Agency on the same day that the VAT return must be submitted.
  • What are the social security contributions in Sweden?
    In Sweden, both employers and employees are required to make contributions to social security. The employer contribution is typically 31.42% of the employee's gross salary, while the employee contribution is 7% of their gross salary. Foreign employers who do not have a permanent establishment in Sweden are required to pay a reduced rate of 19.80 percent for employer contributions.
  • Employer contributions in more detail
    Employer contributions refer to the employer's payments towards general insurance and similar social fees. Employer contributions are calculated based on the gross cash salary and benefits for employees. In certain cases, employers are exempt from paying employer contributions. Social fees are collected in the form of employer contributions, which are paid by employers. Senior citizens As of 1 January 2023, that age limit was raised from 65 to 66 years. This applies to persons who have turned 66 at the beginning of the year, which means that it applies from the year in which the employee turns 67. You need to be 66 or have turned 67 in the year you work and wish to benefit from the reduced employer's contribution. The latter option is more convenient for extracting lists of employees and their ages. So, it's better to think about the year in which they will reach the age of 67; that's when the requirement for the lower fee comes into play. In 2026, the threshold will be increased to 67 years, meaning eligibility starts from the year the employee turns 68. Young people The employer contributions are 10.21% on salaries up to SEK 25,000 per month for youths who have turned 15 but are not yet 18 at the beginning of the year. Full employer contributions are paid on salaries that exceed SEK 25,000 per month. For the portion of compensation exceeding SEK 25,000, 31.42% is paid. The government proposes to abolish the reduction for minors from 1 January 2024. * on salary up to SEK 25,000 per month. 31.42% is paid on the part of the compensation that exceeds SEK 25,000. The employer's fees consist of the following parts:
  • How much is a one-off tax?
    If the person is employed by you and has earned income as their main income, the amount of one-time tax you must deduct on the person's wage income during the year that the one-time amount is paid out is based on anything from 0% right up to 59% (2023) if the person's annual income exceeds 1.63 million.
  • Why such a high tax on lump sums?
    The starting point is that "Preliminary tax must be paid for the tax year with an amount that can be assumed to correspond as closely as possible to the final tax for the same year". Decisive for which tax is to be deducted is partly whether the payer is the main employer or not, and partly whether it is a lump sum or not.
  • What is the corporate tax in Sweden?
    Corporation tax is a tax on the profit made in limited companies. Between 2013 and 2018, it amounted to 22 percent in Sweden. In 2019 it was lowered to 21.4 percent and in 2021 it was lowered to 20.6 percent. If the company chooses to distribute the assessed profit, the owners are taxed in a second stage with capital income tax.
  • How much is the VAT tax in Sweden?
    There is 25 percent VAT on almost all goods and services you sell. But there are exceptions. 12 percent VAT applies to, for example, food, restaurant visits, hotels and works of art that the artist sells himself. 6 percent VAT applies, for example, to newspapers, books, taxi, bus, air and train travel in Sweden, concerts and more. The tax rate of 6 percent often, but not always, applies in the field of culture.
  • What is the employer contribution rate for companies that do not have a permanent establishment in Sweden?
    Foreign employers who do not have a permanent establishment in Sweden are required to pay a reduced rate of 19.80 percent for employer contributions, as opposed to the standard rate of 31.42 percent.
  • What are the regulations for payroll records and payslips in Sweden?
    Employers are required to keep payroll records for at least seven years. They must also provide payslips to their employees, which must include information such as gross salary, deductions, and net pay. The best payslip delivery service is Kivra. There you also receive government documents by default, and at the same time can also pay bills there.
  • Where and how do the employees collect their payslips?
    Kivra is a digital mailbox service based in Sweden that allows users to receive and manage important documents and communications from businesses and authorities in a secure and convenient way. Users can sign up for Kivra and link it to their digital identification through the Swedish BankID system. Once registered, they can receive documents such as bills, payslips, tax forms, and insurance policies, directly in their Kivra inbox instead of receiving them in physical mailboxes. Kivra is designed to help reduce paper waste, simplify administrative tasks, and improve security by eliminating the risk of physical mail being lost, stolen, or misdirected. The service is free for individuals and funded by participating businesses who pay a fee to send documents via Kivra.
  • What are the regulations governing the handling of payslips between employers and employees?
    While there are no legal requirements for employers to provide their employees with detailed salary specifications, it is considered a best practice to do so. Employers are required by the Tax Procedure Act to report all tax deductions in writing when paying compensation for work performed. Payslips should clearly show the result of payroll management for a given month, including gross salary (and taxable benefits), preliminary tax deductions, and net salary paid. Additionally, any tax-free and taxable allowances and mileage payments should be specified. Salary specifications should also include information on the employee's accumulated gross salary and tax deductions, number of hours worked (if applicable), number of holidays taken and remaining, reporting of any time bank, and deductions made due to absence, such as parental leave or other types of leave. Collective agreements may also include specific provisions related to salary specifications. Ensuring that the specification is clear and accurate is important for employees to be able to easily review and verify the correctness of their payslip.
  • If an employee is not using Kivra, how can they access their payslips?
    We offer an alternative app for employees who do not have or prefer not to use Kivra. However, we highly recommend using Kivra as it offers many benefits beyond just accessing payslips. For example, it allows you to store all of your payslips in one convenient location, which is useful when changing jobs or moving. Unlike other options, your payslips will always be saved in Kivra even if you leave your current employer. Registering for Kivra is simple and only requires your social security number, email, and mobile number. You will complete the registration process using BankID, the most secure way to identify yourself online. The entire process takes a maximum of two minutes." More info about Kivra:
  • How is sick pay calculated?
    To calculate sick pay, employers must provide sick employees with 80% of their normal pay for the first 14 days of their absence, with a deduction of 20% of their weekly pay. For absences longer than 7 days, employees must provide a doctor's note, which an employer may request at any time if they deem it necessary. If a sickness absence exceeds 14 days, the employee must report it to the Swedish Social Insurance Office. From that point, the Social Insurance Office takes over sick pay provision for the employee, provided they have a Swedish social insurance number. You get just under 80 percent of your salary up to the income ceiling of gross SEK 43,750 a month. At most, you can get SEK 1,116 per day (7 days a week) before tax. (2023) Some employers may choose to continue providing sick pay to their employees through a long-term illness stipend or insurance plan.
  • What are the rules for sick leave and sick pay in Sweden?
    In Sweden, employees are entitled to sick pay from their employer after the first day of illness. The length of the sick pay period varies depending on the length of the employee's employment and the collective bargaining agreement or employment contract.
  • What is waiting days and waiting days deduction? (Karensdag)
    Sick leave deduction is a deduction that your employer makes from the sick pay when you are home from work due to illness. The deduction corresponds to 20 percent of sick pay during an average working week. The waiting period deduction has replaced what was previously called the waiting period, which meant that you did not receive sick pay during your first sick day. When you are sick and stay home from work, the employer must pay you sick pay. The sick pay corresponds to 80 percent of the salary you have when you work. From this sick pay, the employer also makes a qualifying deduction. The sick leave deduction is 20 percent of the sick pay you receive for an average working week. For a full-time employee, this means that you do not receive sick pay for the first working day that you are sick. Your qualifying deduction is thus calculated based on how much you work on average during a week. Until the 14th sick day, it is the employer who pays sick pay. The suspension deduction is made both on the sick pay and on the sick pay.
  • How long is parental leave?
    The duration of your parental leave is determined by the number of children you have and whether you are in a relationship or is single. Each parent is entitled to a specified number of days, with the remaining days being shareable. For one child, the allowance is 480 parental days, and this increases if you have multiple children. 1 child – 480 days 2 children – 660 days 3 children – 840 days 4 children – 1,020 days Each parent is allocated 90 reserved days, with a total of 240 parental days allotted to each parent. If you are a single parent, you are entitled to all 480 days. For children born on or after January 1, 2016, each parent must take a minimum of 90 days of parental leave. After completing the mandatory 90 days, the remaining days can be utilized by either parent, split between them, or forfeited. If the child was born prior to January 1, 2016, each parent is required to take two mandatory months of parental leave. Parental leave can be divided into half days, and there are various options for dividing your entitlement. You can choose between full days (100%), three-quarters (75%), half days (50%), one-quarter (25%), or one-eighth days (12.5%). It is important to note that you cannot divide parental leave in any other way than the aforementioned options. The non-pregnant parent can receive temporary parental allowance for up to ten days after the birth of their child. This compensation is designed to provide the parent with the opportunity to be present during the child's first days and to take care of other children in the family. It is possible to divide the days into halves, which means that the parent can take 20 half days instead of 10 full days. It should be noted that the compensation is granted per child, so the allowance will be 20 days for twins and so on.
  • Is parental leave vacation-based?
    Parental leave is based on vacation entitlement for the first 120 days, equivalent to approximately four months of leave. If you have 25 vacation days, you will earn a total of nine paid vacation days during parental leave. If you have 30 vacation days, you can save ten paid vacation days. Both parents are entitled to 120 days of vacation-based parental leave. If you have sole custody of your child, you are entitled to more vacation-based days. Instead of 120 days, you can have up to 180 days of vacation-based parental leave.
  • Is it possible to access the services of Skatteverket/The Swedish Tax Office?
    You need to be a Swedish citizen or have an international eID stated below to access The Swedish Tax Office. To log in to "Mina Sidor" (My Pages) on the Swedish Tax Agency's website, you need a BankID, Freja eID+, AB Svenska Pass, or a Foreign eID. BankID is a digital identification solution. To obtain a BankID, you must have a Swedish personal identification number. The same requirement applies to Freja, another digital identification method. Bank statements and messages are exclusively sent by post if you don't have the required electronic identification (eID). Accessing this information over the phone is not possible, as identification without BankID is necessary for such transactions. If you possess an eID from any of the countries listed below, you can apply to become an authorized signatory for your Swedish company even if you are not a Swedish citizen. The eligible countries are Belgium, Denmark, Estonia, Italy, Croatia, Lithuania, Liechtenstein, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Austria, and Germany. Countries being added to the list are expanding. To view the current list, log in to the Swedish Tax Agency's website at and select "Foreign eID." If the company is registered as an employer and has been assigned an organizational number, you can apply to become an authorized signatory using the Swedish Tax Agency's form SKV4801
  • What is the minimum wage in Sweden?
    There is no statutory minimum wage in Sweden. Instead, minimum wages are usually set through collective bargaining agreements between employers and trade unions.
  • What are the rules regarding Business Banking in Sweden?
    It is not mandatory to make payments to both employees and the authorities from an in-country bank account. The rules and regulations regarding Business Banking in Sweden are primarily governed by the Swedish Financial Supervisory Authority (Finansinspektionen) and the Swedish Companies Act (Aktiebolagslagen). Some of the key rules and requirements that businesses need to follow in Sweden include: Registering the business with the Swedish Companies Registration Office (Bolagsverket). Opening a bank account in the company's name with a licensed Swedish bank. Maintaining proper accounting records and preparing financial statements in accordance with Swedish Accounting Standards (K3). Complying with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, including identifying beneficial owners and reporting suspicious transactions. Ensuring that the business has sufficient funds to cover its liabilities and obligations, including tax payments, employee salaries, and other expenses. Obtaining any necessary licenses or permits required to operate the business in Sweden. It's important to note that the specific rules and requirements may vary depending on the type and size of the business, as well as the industry in which it operates. It's recommended to consult with a local accountant or legal advisor for more information on the rules and regulations that apply to your specific business in Sweden.
  • What percentage of the social security contributions are paid by the employee, and what is the amount of the pension fee?
    Employers are required to deduct a certain percentage of an employee's salary for pension contributions. Of total 31.42% social security contributions, 10 21% go to the pension. Health insurance fee 3,55% Parental insurance fee 2,60% Retirement pension fee 10,21% Survivor's pension 0,60% Labor market fee 2,64% Work injury fee 0,20% General payroll tax 11,62% Total 31,42%
  • What is an employer certificate?
    An employer's certificate is proof that you have been employed by an employer for a certain period of time. It is a certificate of what you have done at the workplace, how much you have worked, how much you have earned, an explanation of why you chose to quit. . Employer's certificate is required for unemployment insurance. When you leave a workplace, you are entitled to an employer's certificate according to the Unemployment Insurance Act. You must then submit that to your social security fund in order to be entitled to compensation if you are unemployed. The certificate is used to prove your right to compensation and calculate your compensation. The employer's certificate for the unemployment insurance fund must be drawn up on a special form provided by the payroll provider. Some charge for this service, others do not.
  • What is a shadow payroll?
    A shadow payroll is a paralell payroll system that runs concurrently with the existing payroll service to facilitate a smooth and error-free transition from the current supplier to the new one. As the new provider, the main objective is to ensure compliance with local tax and reporting regulations while preserving the established routine and policies. This approach promotes a sense of security and fosters a solid foundation for a successful collaboration. If both providers use the same payroll system, a shadow payroll may be unnecessary since the new provider can rely on the backup copy. You simply resume where the previous provider left off since all the necessary data is stored in the database. A shadow payroll run is typically only conducted in complex arrangements, such as larger projects involving numerous employees and multiple collective agreements.
  • Salary Exchange for Your Employees
    Employers have various ways to reward their employees, one of which involves the employee sacrificing part of their salary in exchange for a benefit. This benefit could be anything from health insurance, company cars, bicycles, or upgraded equipment. However, one of the most common and potentially advantageous solutions is salary exchange for pension contributions. Salary exchange for pension is a simple agreement between the employer and employee that enhances the employee's occupational pension by deducting from their gross salary. This deduction is then transferred to a specific occupational pension scheme. Typically, employees exchange part of their gross salary on a monthly basis, but it's also possible to exchange bonus payments. Things to Know About Salary Exchange for Your Employees: Who can benefit from salary exchange? There's no set rule regarding who can participate in salary exchange for pensions, but income level should be considered. Employees should ideally have a relatively high income to engage in salary exchange – the gross income after deductions for pension exchange shouldn't fall below 8.07 income base amounts (51,245 SEK/month in 2024). Otherwise, the employee risks reducing their general pension, sickness benefit qualifying income (SGI), parental benefits, and other social insurances.
  • Do you actually provide 24-hour support to your clients?
    We guarantee to respond to all inquiries within 24 hours. Depending on the complexity of the issue, it may be necessary for us to request additional time to provide a comprehensive solution. However, we are committed to always providing our clients with a response."
  • How does your fixed price differ from the fixed prices offered by other suppliers I have been in contact with?
    Most suppliers say they have a fixed price, but the cost can vary greatly between different suppliers due to the additional work that is not included in the fixed price. Some charge extra for any manual input, vacation year-end calculations, yearly changes in the system, retroactive calculationstermination of employee/final pay, tax return representative, portal cost, yearly or per user, startup time report system, time report system user cost, employers certificate, changes in wage types, projects, etc, payroll questions, exit (buying the payroll data), payslip upload However, some consultancies may deliberately work slowly to increase their billable hours, whereas our approach is to work efficiently and deliver high quality work within the agreed time frame, which sets us apart from the industry norm. Payroll services included in the fixed price Manuel input Year-end vacation calculation Year-end re-adjustments Termination of employee/Final pay Time reporting system Payroll system, server, etc, Portal for ticketing support Pay review changes Retroactive salary calculation Payslips upload Reporting via file to Swedish Tax Agency File for reporting to the Swedish Tax Agency Tax return representative Reporting via file to pension institutes Employer certificate File for bookkeeping Advantages of fixed price over hourly billing Predictable cost: With a fixed price contract, you know exactly how much you will have to pay upfront. This allows you to plan and budget more effectively, without having to worry about unexpected expenses that can come with a fixed price per payslip + hourly billing. Reduced administrative work: Hourly billing requires clients to track time and invoices, which can be time-consuming and tedious. With a fixed price contract, clients only need to make a single payment Clear expectations: Fixed price contracts usually include a detailed scope of work and timeline, which helps to establish clear expectations between the client and contractor. This can help to prevent misunderstandings and ensure that both parties are on the same page throughout the project. Reduced risk: Fixed price contracts shift the risk from the client to the contractor. If the project takes longer than expected, the contractor must still complete the work within the agreed-upon price. This means the client is protected from cost overruns and can be confident that they will not have to pay more than the original price. Incentivizes efficiency: By offering a fixed price for the project, the contractor is incentivized to work efficiently and deliver high-quality work within the agreed-upon timeframe, which is a departure from the typical industry model where contractors are paid more for spending more time on a project, incentivizing slower work.
  • If an employee is not using Kivra, how can they access their payslips?
    We offer an alternative app for employees who do not have or prefer not to use Kivra. However, we highly recommend using Kivra as it offers many benefits beyond just accessing payslips. For example, it allows you to store all of your payslips in one convenient location, which is useful when changing jobs or moving. Unlike other options, your payslips will always be saved in Kivra even if you leave your current employer. Registering for Kivra is simple and only requires your social security number, email, and mobile number. You will complete the registration process using BankID, the most secure way to identify yourself online. The entire process takes a maximum of two minutes."

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