The umbrella employment form is a new, innovative way of organising work within traditional employment law. Umbrella employment is suitable whenever you need to send an invoice for a job and you don’t want to start up your own company. Umbrella employment is equally suitable for students, professionals and pensioners. Umbrella employment is also excellent for those who invoice for work abroad, or if you come from another country and need to receive remuneration for work performed in Sweden. Umbrella employment could also be envisaged for those who run a business with a turnover of less than SEK 1 million per year. Experience shows that the umbrella form of employment is the most cost effective solution, plus it makes things significantly easier.
See what the Swedish Tax Agency writes about umbrella employment- link; http://www.skatteverket.se/funktioner/sok/sok.4.64a656d113f4c7597011b3.html?query=egenanst%C3%A4llning
See what Egenanstälningsföretagen writes about umbrella employment – www.egenanstallning.org
Umbrella employment from an employment law perspective
What is meant by “umbrella employed” is workers, referred to as “contractors,” who are entitled to negotiate concerning work assignments with principals (customer) for the account of the umbrella company (the employer Frilans Finans) and normally are hired for the assignment in the event the umbrella company, after a credit check (Approved invoice) chooses to accept the assignment.
The umbrella company (Frilans Finans) reports the income tax and social insurance contributions. At year end, the contractor has the amount of their income pre-printed in the self assessment tax return and receives a Statement of Earnings and Tax Deductions via e-mail. The umbrella company handles all administration.
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