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.