Companies that have lost revenue due to coronavirus can apply for transition support. The Swedish Tax Agency has now clarified the rules regarding salary costs for hourly employees.
The transition support is one of many measures during the pandemic to keep businesses afloat. On 1 September, the possibility to apply for support for August 2021 opened, and on 1 October, the application period for September 2021 will open.
It is important to keep track of the dates as the support periods are only open for a certain time. September 30th is the last day to submit an application for the July 2021 support period, October 8th is the last day for August, and October 29th is the last day to apply for support for September.
Reduction in turnover due to coronavirus
Support can be sought by companies that can demonstrate that their net turnover has substantially decreased during the support periods compared to the corresponding months in 2019. Companies must also show that the decrease in turnover is almost entirely due to the coronavirus pandemic.
The amount of support a company can receive is calculated by the Swedish Tax Agency based on a calculation formula. The starting point is which fixed costs are to be included and excluded.
Clarification regarding hourly paid employees
The Swedish Tax Agency has now clarified the information on its website regarding costs for hourly employees. Previously, it was stated that wage costs for hourly employees were, in normal cases, costs that could be avoided. This wording has now been adjusted. Instead, the Swedish Tax Agency writes the following in its guidance:
”Wage costs for hourly paid staff are an example of wage costs that, depending on the circumstances, can be avoidable costs. A wage cost that is necessary for carrying on the business is not an avoidable cost, regardless of whether it is hourly paid staff or not.”
Charlotta Marténg
This article is published in partnership with Resultat
