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Sweden Payroll Services & Solutions

Horizons will set up and run your Sweden payroll, whether or not you have a Swedish entity

Establishing and maintaining payroll in Sweden

The Scandinavian country of Sweden has a high standard of living, interesting culture, and an open business environment. These factors and more make it an excellent place to expand any business.

If your organization is looking to expand in Sweden, one of the first steps will be hiring employees locally, and this requires setting up a payroll in the country. While it is certainly possible to do this, Sweden’s unique employment laws, as well as language and cultural barriers, can cause delays and make it a lengthy process for foreign businesses.

At Horizons, we specialize in providing Sweden payroll outsourcing support services, providing organizations with a way to hand over the time-consuming process of setting up and managing a payroll. We offer flexible outsourcing packages for businesses that have already registered an entity in Sweden, as well as those that haven’t

Why choose the Horizons payroll solution?

If you have an entity

If you have already established an official entity in Sweden, we offer outsourced payroll support to help you set up and run your Sweden payroll. In addition, we can provide HR, contract, and legal compliance support meaning you won’t have to worry about any of the complex administration and can focus on your expansion efforts.

This service is the perfect solution for any organization that has already registered an entity in Sweden but could benefit from support navigating the unique Swedish employment system.

If you don’t have an entity

If you have not registered an official entity in Sweden yet, we can provide our more comprehensive payroll service, offering our Sweden subsidiary to work as your employer of record in the country. Our Sweden payroll experts can also manage your HR, contracts, legal compliance, and more.

This route to employing in Sweden is an ideal way to flexibly expand your business into Sweden’s lucrative marketplace without any hassle.

Hire borderless talent with Horizons

Sweden payroll guide

What are the withholdings and tax requirements in Sweden?

Sweden’s unique and often complicated tax system can be difficult to understand. The country follows a progressive tax model, with higher earners paying a higher percentage in income tax, and taxes are deducted before salaries are paid. There is a municipal income tax rate of 32% (the average across municipalities) which applies to all employees regardless of income, and a national income tax of either 0% or 20%, dependent on income level. As of 2020, the corporate tax rate in Sweden is 21.4%, but this is set to drop to a slightly lower amount in 2021. Social security benefits are funded in part by employers. Employers are required to pay around 30% of salary in contributions to the social security fund, which covers things like pensions and sickness payments.

Entitlements and terminations

It is always advisable to write up a strong formal employment contract for every employee, with details of entitlements and termination terms to avoidant confusion or disputes.

In Sweden, employers are required to give two weeks of notice at a minimum before giving notice of termination. Employees can then enter negotiations, where reasons are provided and may be requested in writing.

The actual length of notice required varies by employee based on length of employment and can vary from one month to six months.

How to establish Sweden payroll outsourcing

Establishing a payroll in Sweden yourself can be a time-consuming and frustrating process. You will first need to register an entity in the country, then register with the tax office, open a bank account, and more. The whole process can take several weeks to complete, holding back your expansion and cutting into expected revenues.

Alternatively, you can choose to outsource the payroll setup and management to Horizons. Our experts can set up and manage your payroll and all associated administration so you don’t have to. We can also provide use of our Sweden subsidiary to act as your employer or record, so you can start hiring and expanding in Sweden even if you don’t have an established entity in the country.

Manage payroll in Sweden

Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.

Sweden Payroll Services & Solutions

Horizons will set up and run your Sweden payroll, whether or not you have a Swedish entity

Establishing and maintaining payroll in Sweden

The Scandinavian country of Sweden has a high standard of living, interesting culture, and an open business environment. These factors and more make it an excellent place to expand any business.

If your organization is looking to expand in Sweden, one of the first steps will be hiring employees locally, and this requires setting up a payroll in the country. While it is certainly possible to do this, Sweden’s unique employment laws, as well as language and cultural barriers, can cause delays and make it a lengthy process for foreign businesses.

At Horizons, we specialize in providing Sweden payroll outsourcing support services, providing organizations with a way to hand over the time-consuming process of setting up and managing a payroll. We offer flexible outsourcing packages for businesses that have already registered an entity in Sweden, as well as those that haven’t

Why choose the Horizons payroll solution?

If you have an entity

If you have already established an official entity in Sweden, we offer outsourced payroll support to help you set up and run your Sweden payroll. In addition, we can provide HR, contract, and legal compliance support meaning you won’t have to worry about any of the complex administration and can focus on your expansion efforts.

This service is the perfect solution for any organization that has already registered an entity in Sweden but could benefit from support navigating the unique Swedish employment system.

If you don’t have an entity

If you have not registered an official entity in Sweden yet, we can provide our more comprehensive payroll service, offering our Sweden subsidiary to work as your employer of record in the country. Our Sweden payroll experts can also manage your HR, contracts, legal compliance, and more.

This route to employing in Sweden is an ideal way to flexibly expand your business into Sweden’s lucrative marketplace without any hassle.

Hire borderless talent with Horizons

Sweden payroll guide

What are the withholdings and tax requirements in Sweden?

Sweden’s unique and often complicated tax system can be difficult to understand. The country follows a progressive tax model, with higher earners paying a higher percentage in income tax, and taxes are deducted before salaries are paid. There is a municipal income tax rate of 32% (the average across municipalities) which applies to all employees regardless of income, and a national income tax of either 0% or 20%, dependent on income level. As of 2020, the corporate tax rate in Sweden is 21.4%, but this is set to drop to a slightly lower amount in 2021. Social security benefits are funded in part by employers. Employers are required to pay around 30% of salary in contributions to the social security fund, which covers things like pensions and sickness payments.

Entitlements and terminations

It is always advisable to write up a strong formal employment contract for every employee, with details of entitlements and termination terms to avoidant confusion or disputes.

In Sweden, employers are required to give two weeks of notice at a minimum before giving notice of termination. Employees can then enter negotiations, where reasons are provided and may be requested in writing.

The actual length of notice required varies by employee based on length of employment and can vary from one month to six months.

How to establish Sweden payroll outsourcing

Establishing a payroll in Sweden yourself can be a time-consuming and frustrating process. You will first need to register an entity in the country, then register with the tax office, open a bank account, and more. The whole process can take several weeks to complete, holding back your expansion and cutting into expected revenues.

Alternatively, you can choose to outsource the payroll setup and management to Horizons. Our experts can set up and manage your payroll and all associated administration so you don’t have to. We can also provide use of our Sweden subsidiary to act as your employer or record, so you can start hiring and expanding in Sweden even if you don’t have an established entity in the country.

Manage payroll in Sweden

Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.

What to expect when you connect with Horizons

Recruit, hire and pay remote
teams without a local entity

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