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At the turn of the year, new laws and regulations within payroll management and HR came into effect that may affect you as an employer. In this article, we list the most important updates to keep an eye on from January 1, 2024.
Important Values Effective from January 1, 2024
- The price base amount for 2024 changes to SEK 57,300, and the increased price base amount is SEK 58,500. These base amounts impact, among other things, taxes, car benefit calculations, calculation of meal benefits, student aid, occupational pension, as well as parental and sick benefits.
- The new income price base amount is SEK 76,200 and affects the calculation of the highest pensionable income.
- For per diem allowances, the tax-free standard compensation for a full day increases to SEK 290 and to SEK 145 for a half-day.
- Meal benefits are raised to SEK 300 per day, with breakfast at SEK 60 and lunch or dinner at SEK 120.
- The maximum tax-free annual income for youths is SEK 24,237 for 2024.
- The value for tax-free Christmas gifts is raised to SEK 550, and the value for anniversary gifts is changed to SEK 1650.
Updates on Benefits
- Loans: If an employee or contractor receives a favorable loan from the employer, i.e., an interest-free loan or a loan where the interest is below market value, this is considered a benefit. According to the new budget, the comparison rate of the benefit is increased. The value of the interest benefit is calculated based on the difference between the employee's interest and the government bond rate plus 1.5%, up from the previous 1%.
- Housing: Free or subsidized housing is considered a taxable benefit. In the PAYE tax return, the employer should use a standard value for the valuation of the benefit. The Swedish Tax Agency has set standard values for taxation; ensure that you reassess the benefit so that the taxation for 2024 is accurate. Some examples of the new standard values are SEK 129 per square meter and month for the Greater Stockholm region, SEK 117 for the Greater Gothenburg region, and SEK 125 for the Greater Malmö region.
- Car: Car benefit values are affected, among other things, by the new price base amount mentioned above, so don't forget to reassess the benefit for 2024.
- Bicycle: For the valuation of the benefit, consider the market value of the bicycle and the government bond rate at the end of November of the preceding year. Ensure that bicycle benefits are recalculated to align with the values for 2024.
New Fields in the PAYE tax return
As of September 1, 2023, new fields were introduced in the PAYE tax return for individuals without a personal identity number or coordination number. For individuals with only a birthdate in box 222, you also need to provide the place of birth in box 077 and country code for the place of birth in box 078.
Furthermore, starting from January 1, 2024, board fees should be reported separately in the new field 023. Board fees should also be reported as cash compensation, and benefits should be reported as before. This expanded reporting is due to information exchange between countries.
Social Contributions for Youths
When calculating social contributions for youths who have turned 15 but are not yet 18 at the beginning of the year, the reduced age pension contribution rate of only 10.21% on earnings up to a maximum of SEK 25,000 per calendar month is eliminated from January 1, 2024. This means that this age group is subject to the full contribution rate of 31.42%.
Expert Tax
Foreign citizens with qualified tasks or a monthly salary above a certain threshold may receive a tax relief on their employment income according to a special decision from the Taxation of Research Workers Board (Forskarskattenämnden). The government has decided to extend the time limit for approvals from 5 to 7 years. Companies with approvals granted for 5 years can, under certain conditions, apply for an extension. This applies to stays that commenced after March 31, 2023.
Research and Development Deduction (R&D)
The R&D deduction means that companies employing individuals involved in qualified research or development pay lower employer contributions and lower general wage taxes. The deduction was introduced in 2014 and has been strengthened by the government since then. The law has been reviewed and replaced with an entirely new law effective from January 1, 2024. The new law means that the deduction can be given with a maximum of 20% of the contribution base for individuals covered by it. The ceiling for the total reduction is SEK 3,000,000 per month and per group.
FORA - Monthly Reporting for Workers
Svenskt Näringsliv and LO have reached an agreement that Fora will transition to monthly reporting of the SAF-LO collective pension insurance. The monthly reporting is effective from January 1, 2024. Primarily, companies with workers will be affected. This entails several changes for companies that have employees under SAF-LO. A new process for monthly reporting needs to be established. Additionally, a new marking of all employed workers is introduced, with a so-called FOK code.
Many changes and updates have come into effect at the turn of the year, and we at Azets help you navigate these changes. We at Azets are experts in payroll administration, HR, and accounting. Do not hesitate to contact us if you need assistance or advice.
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