Why Accurate Time Reporting Matters in Swedish Payroll.

Lilac Flower

n Sweden, time reporting isn’t just a tool for tracking hours — it directly affects payroll, taxes, vacation, and employee rights. Whether your team is salaried or hourly, accurate time reports are critical for payroll to function properly.

Here’s why time tracking matters more than you might think.

Why Time Reporting Is Required

Swedish payroll laws and labor agreements rely on accurate records of:

  • Worked hours

  • Overtime

  • Absences (paid and unpaid)

  • Sick leave

  • Parental leave

  • Vacation days

This information is used to calculate monthly salaries and employer contributions — and is required for proper reporting to Skatteverket.

New Payroll Rule 2025: Sick Leave Must Be Reported in the AGI

Starting in January 2025, all employers in Sweden must also include sick leave days in the monthly employer declaration (AGI).
This change improves coordination with Försäkringskassan, reduces manual reporting, and helps speed up sickness benefit handling.

Employers who fail to track and report sick leave correctly may face compliance risks or delays in employee benefits.

This makes accurate time reporting even more critical moving forward.

What Can Go Wrong Without It?

Inaccurate or missing time reports can result in:

  • Over- or underpayment of salaries

  • Incorrect tax withholding

  • False employer declarations

  • Misreported vacation balances

  • Compliance risks with unions or collective agreements

Fixing errors later is time-consuming, and may require corrections to past payroll periods — including tax submissions.

Monthly Deadlines Are Tight

In Sweden, the payroll cycle is short:

  • Employees submit time reports by the 1st–5th of each month

  • Payroll is processed shortly after

  • Employer declarations must be submitted by the 12th

  • Salaries are paid by the 25th

If time reports are late or incomplete, the entire chain is delayed — or processed with guesses that may lead to mistakes.

Let Employees Report — But Keep Control

Using a digital portal makes it easier to:

  • Collect time reports on time

  • Avoid manual errors

  • Keep track of vacation balances and sick leave

  • Approve or reject entries

  • Lock reporting after each period

Our Stay-in-touch-Portal gives you just that — without bloated features.

What About Fixed Salary Employees?

Even for employees with fixed monthly salaries, time reporting matters for:

  • Absence deductions (unpaid leave)

  • Sick leave reimbursements

  • Statutory vacation tracking

  • Adjustments for start or end of employment

Ignoring time reporting risks paying more than required — or failing to meet reporting obligations.

We Help You Get It Right

We provide:

  • Digital tools for time reporting

  • Clear checklists and reminders

  • Integration with payroll processing

  • Monthly review and confirmation

You stay in control, and your employees know exactly what’s expected.

Conclusion: No Time to Guess

Time reporting isn’t just a formality — it’s the foundation of compliant, accurate payroll in Sweden. With the new AGI rules starting in 2025, the importance of tracking sick leave correctly is greater than ever.

Let us help you set up a process that works — and avoid costly mistakes before they happen.