- Overview: Sweden
- Global PEO and Payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global Employer of Record (EOR) in Sweden
9 Global Employment Challenges to Consider
If you’re considering expanding your operations to a global level, you’ll want to consider all the details that go into that decision. That includes everything from choosing the most cost-effective country and the right entity type to preparing for business challenges across borders. Choosing a location that works with your overall strategy and offers lower taxes could be one way to help improve profitability.
As you prepare to expand internationally, it’s crucial to understand how each factor impacts the overall success of your business. Here are some global expansion challenges.:
- Every country in the world has its own set of unique business laws.
- The legislative and regulatory landscape is ever-evolving. Keeping track of changes is cumbersome.
- Global HR Compliance challenges
- Need to understand and keep track of ever-evolving local labor laws and tax regulations across multiple jurisdictions.
- Need to understand the local labor market
- Need to understand local business practices pertinent to employment
- Need to adhere to the company’s global employment policies
- Need to understand local competition and benchmark against common business practices
- Working with different languages, time zones, customs, and cultures
No matter which countries you expand to or what type of operation you open, there are some significant issues you will always have to deal with.
Global expansion decisions come with a lot of moving parts. The decision to expand internationally can significantly impact your business, so it’s essential to make sure you handle it correctly.
3 Options for Multi-location International Employment
Businesses establishing a global presence face the challenge of managing and scaling an employee base with no common borders or language. To successfully expand abroad, companies have several options for enabling hiring in international markets.
There are six key things to consider when choosing an employment method for your company’s global expansion:
- Budget and time frame
- Tax implications
- Employment liability
- IP protection
- Asset acquisition.
The most commonly used ways are by doing the following:
- Overseas Permanent Establishment (a representative office, a branch, a subsidiary, and other foreign legal entity types )
- Selecting independent contractors to handle tasks remotely.
- Work with a global EOR (Employer of Record) and GEO (Global Professional Employer Organisation) Partner.
Global Employment Services: Employer of Record in Sweden
Global Employment Journey — Recruitment. Onboarding. Management. Retention. Termination
Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.
2. Global Mobility
5. Payroll Administration
6. Working Time & PTO Processing
7. Benefits Administration
8. Tax Administration & Reporting
|Talent skilled in highly-specialized areas||Employee Work Visa and Work Permit sponsorship||Health checks||Employment Agreement drafting||In-country registration with statutory bodies||Working hours||Mandatory Benefits||Tax Reporting frequency and requirements;||Employment agreement termination:|
|Executive search||Dependent Visa||Criminal record checks||Compliant worker onboarding on your behalf||Day-to-day payroll management||Overtime||Health insurance||Employer taxes & contributions||Dismissal – by the employer|
|Contingency workforce||Visa extension||Background checks||Account setup in the payroll and HR system||Monthly pay slips or other pay frequency||Public holidays||Workers’ compensation||Employee taxes & contributions||Resignation – by the employee|
|Application for a sponsor license for a foreign national||Education checks||Employee data entry and records maintenance||Accruals||Annual leave||Unemployment insurance||Withholding tax||Termination by mutual agreement|
|Relocation assistance||Managing probation periods||Allowances||Parental leave||Voluntary Benefits||Local tax payments and reporting to local authorities||Notice period handling|
|13th and 14th salary||Sick leave||Share plans for executives||End of financial year reporting||Final settlement & severance payments|
|Additional leave||Bonuses & Equipment provision||De-registration with statutory bodies|
|Expenses reimbursement & business trip processing|
|Health insurance, dental treatment|
Global Employer of Record is an integrated solution in Sweden that usually provides strategic guidance and a wide array of high-quality, cost-effective services tailored to your specific requirements that can help your company grow and scale up safely.
A Global Employer of Record solution means Acumen International can employ the selected candidate or candidates on your behalf in Sweden in a record time. We become your trusted partner in Sweden and guide you through local labor laws, thus eliminating any employment risks for you and freeing you from the necessity to go into all legislative specificities or set everything up by yourselves. Also, we will resolve all local labor issues for you, allowing you to focus on your primary business objectives.
Part of the benefits of using our international Employer of Record and payroll outsourcing solution in Sweden is that we can organize work permits and business visas in Sweden required for foreign talent immigration.
Acumen International offers a global PEO and payroll solution to handle all payroll details while ensuring full compliance with in-country labor and taxation laws. Contact us to get more information about Acumen’s Global PEO and payroll service in Sweden.
9 Benefits of Using Global Employer of Record Services in Sweden
- Global employment management centralization. Maximized control. Minimized risk. Ongoing compliance support.
- A Global Employer of Record facilitates quick talent deployment and provides access to various employee benefits solutions to attract and retain your global talent
- Eliminating and mitigating certain employment-related risks, including non-compliance and employee misclassification, through the shared responsibility and co-employment arrangement
- Scalable technology and infrastructure provided via the global PEO relationship
- Reduced and stable global employment management-related cost
- A global EOR can facilitate risk-free, quick, and easy market entry into Sweden by acting as your local legal entity, helping you to avoid the cost and time associated with incorporating in 190 countries.
- A global Employer of Record allows you to make your global expansion 100% compliant and secure by keeping track of and adhering to all local laws and regulations.
- A global Employer of Record helps you remain agile and scales up or down in your selected foreign markets according to your business needs.
- A global Employer of Record facilitates global employment consistency and HR compliance
8 Scenarios When You Might Need a Global Employer of Record (EOR) Partner in Sweden
- You have hired an employee but are unhappy with your current employment service provider.
- You’ve decided to hire an independent contractor instead of a full-time employee, but you’re unsure if you comply with local laws and regulations.
- You are currently looking to improve the quality of your employment services.
- You can no longer afford to maintain a whole legal operation via your entity in the target country.
- You have a temporary project or one that doesn’t require you to open a legal entity in the target country.
- You need to hire a foreign workforce for your new project.
- You will need a mix of local and foreign employees to expand your business. Those familiar with the local market will be able to help reduce the learning curve.
- International employers’ most significant challenge is supporting their organization’s employees when their business restructures or reorganizes. A global Employer of Record can support your business upon mergers, acquisitions or close-downs. When you manage the employee relations aspects during any business transitions (M&As or close-downs), you want to ensure the process is seamless and 100% compliant.
Recent Employment Tax Updates in Sweden
As of 2021, the tax rates for personal income tax in Sweden range from 32% to 57.2%, depending on the income level. Both employees and employers pay social security contributions in Sweden. As of 2021, the employee social security contribution rate is 10.21% of the gross salary, while the employer contribution rate is 31.42%.
Sweden also offers employment tax credits to employers to reduce the tax burden. Employers can deduct up to SEK 1,900 per month for certain expenses related to the employee’s job, such as transportation or work-related education.
Sample Employment Tax Calculation
It’s important to remember that tax laws and regulations can change frequently. It is always a good idea to consult with a local tax advisor or the Swedish tax authorities for the latest updates and guidance.
Spotlight on Sweden
Sweden is situated on the Scandinavian Peninsula near the Atlantic Ocean and the Gulf Stream in the north of Europe. Despite its position in northernmost Europe (Stockholm, the capital, is on the same latitude as the southern tip of Greenland), the climate is comparatively mild. Sweden is characterized by its long coastlines, large forests, and numerous lakes.
Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labour force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade.
- Capital: Stockholm.
- Population: 10,040,995.
- Industries: The main agricultural products are grains (particularly oats, wheat, barley, and rye), potatoes and other root crops, vegetables, and fruits, as well as dairy products, meat, and wood. While production exceeds domestic consumption, a significant amount of food must be imported due to lacking crop variety. The country has many natural resources: forests, iron, lead, copper, zinc, and hydroelectric energy.
- Local currency: Swedish krona.
- Public Holidays: New Year’s Day, Epiphany, Good Friday, Easter Sunday, Easter Monday, May Day, Ascension Day, Whit Sunday, National Day, Midsummer Day, All Saints’ Day, Christmas Day, 2nd Day of Christmas.