FAQ about independent contracting
Being an independent contractor is somewhere between being employed and running your own company. As an independent contractor you are an employee of Cool Company, but you carry out your assignments as if you ran your own company. You find your own clients, determine your own prices, your own payment terms and how quickly you want your money.
As an independent contractor with Cool Company, you do not need to be registered for corporation tax as we are responsible as your employer. We deal with bookkeeping and also take care of taxes, contributions and VAT, making sure they’re paid in time – leaving you to focus all your time and energy on your clients and your assignments.
Yes, you can issue invoices as an independent contactor, without registering a company and without corporation tax, provided that:
- You are at least 18 years old and legally competent
- You have not been disqualified from trading for any reason
- Have a work permit for Sweden or are a citizen of the EU
Being an independent contractor means having the same peace of mind as an employee, but the same freedom as an independent business owner. Similarities with employment:
- You are a general fixed-term employee and are paid as a contractor.
- We deal with all contact with the Swedish Tax Agency.
- We take care of your statutory payments such as tax, contributions and VAT.
- You are also insured, provided you pre-register your assignments before carrying them out.
Differences with employment:
- You are freer as an independent contractor as you don’t have a boss.
- You determine your own salary and working hours, and which assignments you accept and decline.
You get paid within 24 hours of us receiving payment from your client. You can select payment terms of 10, 20 or 30 days for your invoices (i.e. the number of days your client has to pay). We notify you by email when we receive your client’s payment.
Need to be paid even quicker? You can apply for Cool Company’s ExpressPay® service. That way, you get paid as soon as we’ve approved your ExpressPay® application and the client has approved your invoice.
The size of your fee (your salary for work done) is an agreement between you and your client. The salary you receive into your bank account is your net pay, i.e. after deductions for employer’s contributions, taxes and Cool Company’s fee.
If you are a retiree, the employer’s contribution is lower and you will have more money left after tax.
You can invoice the vast majority of services through Cool Company, including ROT and RUT jobs (non-commercial jobs). We are, however, unable to approve all types of work, partly for insurance reasons. Always check with us before starting on an assignment to check that the service you’re providing can be invoiced through us.
The Swedish Tax Agency is positive towards independent contracting, and comments as follows (in translation):
“The independent contracting company (umbrella payroll provider) is registered for corporation tax and invoices the clients for a certain commission, books employer’s contributions and makes tax deductions, subsequently paying the rest as salary to the independent contractor. This is termed being an independent contractor…”
Do you want to know more?
Do you still have questions or want to know more? We have collected all our questions and answers that you can navigate between. Check out our FAQ page.