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Tax deduction when paying salary

Before you pay wages to your employees, you must make tax deductions. How much tax you must deduct is shown on the employee's tax slip. You must also inform the employee of how much tax you have deducted, the easiest way to do this is in the pay slip.

Employees have an A-tax assessment notice

A person who is an employee should normally have an A-tax assessment notice. This means that you, as the employer, must pay employer's contributions and make tax deductions from the employee's pay.

Deduct tax according to the employee's tax table

You need to find out the employee's preliminary tax details to know which tax table to use to calculate the tax deduction. You can find this out in two ways:

Ask the employee to give you a copy of their tax assessment notice. They can print or order their tax assessment notice via skatteverket.se (the Swedish Tax Agency).

About A-tax assessment notices at the Swedish Tax Agency (in Swedish)

You can also find out your employee's preliminary tax details yourself by making what is known as a CSR request. This will give you the information you need to make tax deductions without the employee having to show their tax assessment notice.

Make a CSR request at the Swedish Tax Agency (in Swedish)

Tax tables at the Swedish Tax Agency (in Swedish)

30 percent tax deduction

In certain circumstances, you must deduct 30 percent tax from your employee's wages. You must do this if the payment from your company:

  • is a side income for the employee
  • is a lump sum payment
  • is for short-term work (less than one week).

If you pay lump sums together with fixed-term pay, you must make tax deductions according to a special tax table for lump sums. This may involve, for example, paying retroactive pay.

To the tax table for lumps sums at the Swedish Tax Agency (in Swedish)

Inform the employee of the tax deduction

You must inform the employee of the amount of tax you have deducted from their wages at each pay period. This is most easily done via the payslip.

F-tax

Anyone who runs a business has F-tax. A person with F-tax is responsible for paying their own taxes and social security contributions. As a rule, a person approved for F-tax is not considered an employee. However, in certain circumstances, the Swedish Tax Agency may consider a person approved for F-tax to be an employee of a client. One of the deciding factors is whether or not the work is performed autonomously. The assessment is based on the circumstances of the individual case.

Conditional F-tax (FA-tax)

A person who is employed and at the same time conducts business activity may be approved for conditional F-tax (FA-tax). This means that the person has both F-tax and A-tax at the same time. As an employer of a person with both F-tax and A-tax, the rules for A-tax apply to the employment.

About tax deductions at the Swedish Tax Agency (in Swedish)