Beginner’s Guide to Payroll in Sweden.

Slaget vid Gestilren

Starting payroll for the first time can feel overwhelming, especially in a country like Sweden where payroll is highly regulated. But with the right guidance and structure, it becomes a manageable and repeatable process.

This guide walks you through the essential steps for setting up and running payroll in Sweden — even if you’re just getting started.

Step 1: Register as an Employer

Before paying any salaries, you must:

  • Register your business with Skatteverket (Swedish Tax Agency)

  • Obtain a Swedish organization number (if not already registered)

  • Sign up for PAYE tax declarations (arbetsgivardeklaration)

This step ensures you're recognized as a legal employer and can report and pay taxes properly.

Step 2: Collect Payroll Data

For each payroll period, you’ll need:

  • Gross salary from the employment contract

  • Time reports (if hourly) or absence reports

  • Any bonuses, allowances, or benefits

  • Sick leave, vacation, or parental leave days

Accuracy here is key — it forms the foundation of every payslip and tax report.

Step 3: Calculate Salary and Deductions

Swedish payroll includes:

  • Income tax withheld from the employee

  • Employer contributions (around 31.42%)

  • Vacation pay (typically 12%)

  • Other deductions like pension or lunch benefits

You can use payroll software or a payroll partner to automate this process.

Step 4: Generate and Distribute Payslips

Payslips must be delivered every month and show:

  • Gross and net salary

  • All tax and other deductions

  • The period covered

  • Employer and employee details

We recommend using digital distribution, such as Kivra or a secure payroll portal.

Step 5: Report to Skatteverket

By the 12th of the month following salary payment, you must:

  • Submit a monthly PAYE return (arbetsgivardeklaration)

  • Pay withheld taxes and employer contributions to the Skattekonto

We provide clients with the correct OCR and account details to ensure proper payment.

Step 6: Archive and Stay Compliant

You must keep records of:

  • Payslips and tax reports

  • Employment contracts

  • Time and leave reports

All records must be stored securely and handled according to GDPR and accounting laws.

Bonus: Use a Portal That Works for You

Our Stay-in-touch-Portal is designed for both structure and simplicity — letting you share documents via drag and drop, view all payroll history, and manage tasks without clutter.

Conclusion: Start Simple, Stay Accurate

Payroll may sound complex at first — but it’s simply a process. By following the right steps and getting expert help when needed, even a beginner can run compliant and professional payroll in Sweden.

Want help getting started with payroll?
We’ll guide you through setup, reporting, and monthly routines — no experience needed.



Before you dive into the rest of the articles, let me briefly tell you about the photo featured in this article.

This is Skara, one of Sweden’s oldest towns, and a place where the foundations of the Swedish kingdom were forged.

Nearby, the Battle of Lena (1208) and the Battle of Gestilren (1210) were fought — two crucial victories where Swedish forces, led by Erik Knutsson, defeated Danish-backed rivals and ended foreign influence over the crown.
These battles marked the beginning of Sweden’s path toward independence and national governance — the same system that eventually gave rise to structured taxation, rule of law, and yes, payroll.

💡 Curious to see this period brought to life?
Check out the “Arn” novels by Jan Guillou, or the film adaptations Arn – The Knight Templar and Arn – The Kingdom at Road’s End.
Set in this very region and time, they dramatize the struggle between Swedish and Danish powers — with castles, battles, and all the tensions of a country finding its identity.

Slaget vid Gestilren