The new rules on reduced employer contributions for young people came into effect on 6 February. The Swedish Tax Agency has now decided not to charge late payment fees on employer declarations in February.
6 February, when the new rules came into effect, there was only one week left until the submission deadline. The reduction also applies to the January salary, which in many cases must be declared by 12 February.
The reduced employer's social security contribution for young people aims to make it easier to employ young individuals. The rules mean that the employer's social security contribution for people born between 1998 and 2002 will be 19.73 per cent instead of the usual 31.42 per cent.
The reduction applies to salaries up to 25,000 Swedish Kronor. If the employee earns more than this, the usual employer's contribution will be paid on the portion of the salary exceeding 25,000 Swedish Kronor.
According to the Swedish Tax Agency, there wouldn't be enough time for many employers with young employees to adapt and report correctly.
– We would like to get it right from the start, so that we can avoid the need for corrections afterwards as much as possible. Therefore, we will not charge a late fee for delayed employer declarations in February, says Helena Jangel Stridh, business developer at the Swedish Tax Agency in a press release.
Anyone who has already reported in accordance with the previous rules can request a review and thus benefit from the reduction.
The decision not to charge late fees applies to the employer's declaration for January 2021, which must be submitted by 12 February 2021, and for companies with a turnover exceeding 40 million SEK, by 26 February 2021.
Exemption from late payment fees does not apply in cases where the Swedish Tax Agency needs to make an estimated assessment due to the employer's declaration not being submitted at all.
Björn Dickson
This article is published in collaboration with Resultat.
