Streamlining ID06 Registration, Payroll, and Compliance for Construction Projects in Sweden
People2.0 are an official ID06 registered company, meaning we can compliantly operate within the construction industry in Sweden.
In this blog post we will look at how we can help if you are a construction contractor in Sweden.
What Is ID06?
ID06 is an electronic system registers all the workers employed on construction sites and is required of all the companies active in the construction sector in Sweden. The ID06-system started in 2006. It is a system that enables businesses to do ID-controls and gather attendance records, which purpose is to make it difficult to perform undeclared work and for corruption.
Anyone present at a construction site must be registered when they arrive and leave, with this information being verifiable by the Swedish tax authorities. The Swedish Tax Board (Skatteverket) can visit construction sites without prior notice to ensure compliance. If necessary, the tax board can demand reports on working hours, which can be sent directly from the card reader system.
Streamline ID06 Processing with People2.0
We are able to offer a faster ID06 card service, which incurs slightly higher costs. The normal process takes around five working days for the card to be sent, subject to the completion of the application.
Information needed from the employee:
- Copy of passport
- Photo (must fulfill driver’s license/passport photo requirements: sharp, clear, no shadows, in .jpg or .png format)
- Validity period (exceptions may apply)
- Phone number
- National Identity Number
We complete the online application, and the card can either be sent via post or collected from a local ID06 office.
Costs for ID06 cards:
- Cards from 280 SEK per card (with a Swedish social security number), other costs may apply based on each case
- Additional yearly running costs: 80 SEK
Delivery options and costs:
- Standard delivery (via post): within 5 working days
- Priority delivery (via post): next working day after approval
- Express plus: collect the card from a Sistec office in Sweden
Infrastructure and Construction Market in Sweden
One of the most promising markets in Sweden is the construction and infrastructure sector. Between now and 2030, the country will spend €64 billion on railways, roads and other major projects and build 700,000 new homes and offices.
In January 2019, a new Ministry of Infrastructure was formed to focus on the development of the Swedish infrastructure and its long-term demands. A plan, “The Swedish National Transport Plan 2018–2029,” allocates approximately €70 billion for infrastructure projects. Alongside €70 billion from regional and local investment plans, Sweden’s infrastructure sector is booming.
Main Parties
The main parties to a normal construction project are the employer and the contractor. In a project’s simplest form there is only one contractor, but it is common, both in large and smaller projects, for the total scope of work to be divided into parts that are dealt with in parallel construction contracts, often by different contractors.
In addition to the employer and the contractor(s), there are also various consultants, such as the architect and the quality inspector. The contractor(s) and other actors are usually appointed through a tender process and, in the case of public contracts, a public procurement procedure. The common procurement arrangements are no different when there are international contractors or consultants. In relation to public procurement procedures, EU member states’ laws are harmonised by Directive 2004/18/EC on the co-ordination of procedures for awarding public works, supply and service contracts (Consolidated Public Sector Directive). This is to ensure that the same rules of public procurement procedures apply within the EU regardless of whether the main parties are local or international contractors or consultants.
How People2.0 Can Help
Are you an agency or enterprise operating in the Swedish market?
In Sweden, People2.0 offer our standard payroll services, where contractors are employed on our monthly payroll and the employer has a strictly work-based relationship.
We also help employers, agencies and contractors to negotiate the complexities of the tax system, especially the tax relief for foreign personnel, SINK and the special rules on expenses.
Ready to get started? Our team is standing by to help. Reach out to us today.
