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.
This is how the costs for a reduction in pay and working hours are apportioned. (The salary ceiling is SEK 44,000 per month) |
|||||
Level |
Reduced working hours |
Reduced wages |
Employer |
State |
Employer costs |
1 |
20% |
4% |
1% |
15% |
-19% |
2 |
40% |
6% |
4% |
30% |
-36% |
3 |
60% |
7,5% |
7,5% |
45% |
-53% |
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.
Swedish Agency for Economic and Regional growth
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
Latest articles
22
Feb
16
Nov
13
Nov
We will send you articles keeping you up to date with the latest trends and developments in accounting, taxation or legal fields.