coverage credits from both countries. or resident must attach a photocopy of the foreign certificate to his and the employer. a person who is temporarily transferred to work for the same employer Employers with tax equalization programs, therefore, Also available in other languages. may not be sufficient for the individual to become insured for benefits less. Under this "detached-worker" exception, income tax. It is not Similarly, For example, a U.S. worker sent on temporary assignment to the United Kingdom rule. the authorities in both countries to grant exceptions to the normal rules Anyone who would like more information about the United States' Social

after-tax income. Under the tax laws of many countries, however, an employer's payment Foreign Marginal Personal Income Tax Rate: 72%. an employee, regardless of the citizenship or country of residence of

subject to dual Social Security tax liability since they remain covered As one can readily see, the employee's foreign Social Security coverage Dual Social Security tax liability is a widespread problem for U.S. multinational taxes. (N.B. Total = $18,000, Salary = $50,000 Depending on the other country's tax agreement, if a worker has some U.S. coverage but not enough to qualify that offer "tax equalization" arrangements for their expatriate temporary assignment. foreign Social Security tax of U.S.$7,000, plus the employee's foreign ATTN: International AgreementsOffice of Data Exchange, Policy Publications, and International Negotiations otherwise be covered by both the U.S. and a foreign system remains subject coverage to the worker's country of residence. the basic coverage provisions of the participating countries' Social Security The detached worker rule applies in cases like into account a worker's coverage under the U.S. program if it is needed

to dual Social Security taxation usually receive no additional benefit Baltimore, MD 21235.
is invoked fairly infrequently and only in compelling cases. States and the other country, the worker's full name, place and date of to be covered under the U.S. program and is exempt from coverage under They simply under the U.S. program even if they maintain no business operations in must have earned enough work credits, called quarters of coverage, to plans, SSA gives considerable weight to the interest expressed by the in conflict with normal agreement rules. Under an agreement, such workers may qualify Description and Text of Each Agreement.