Short-time work allowance

Short-time work allowance means that the employer’s personnel costs can be reduced by one-half at the same time as the employee receives 90 percent of his or her wages. The State covers up to three-quarters of the cost.

This is an important measure now that many companies are under severe pressure due to the COVID-19 outbreak. We are urgently working to get everything set up and into place, and will disseminate new information about this as it becomes available.

The purpose of short-term work allowance is to support employment and dampen unemployment, in particular with deep recessions or in situations that have not been foreseeable.

The employee can have reduced working hours and still receive more than 90 percent of their wages. The State covers a large part of the costs. The objective is for affected companies to be able to retain their staff and gear up quickly again when the situation turns around. 

The financial support will be available starting 7 April, however will be retroactively applied to as early as from 16 March. The scheme will remain in effect in 2020.

This is how you as a business owner can prepare yourself:

You as a company can prepare yourself by ensuring that you have the possibility for short-time working in your central and local collective bargaining agreement.

In the event the company is not encompassed within a collective bargaining agreement, there will need to be a written agreement with at least 70 percent of the employees, allowing for short-time working. The agreed reduction in working hours and wages that has been agreed upon must be the same for all participating employees within the operating unit.

Source

Swedish Agency for Economic and Regional growth 

Proposed new possibilities for deferment of tax payment

In addition to the current rules, the government has also proposed that you, as an entrepreneur, should be able to have better opportunities for deferment of tax payment. You will be able to get deferment of tax payment for employer contributions, preliminary tax on salary and value added tax which is reported quarterly and monthly. The deferment of tax payment will include three accounting periods and you can get deferment up to one year. The new rules are proposed to apply from 7 April, 2020, but you can apply retroactively from 1 January, 2020.
Source

Swedish Tax authority