TN 50 (10-22)

RS 02001.715 Detached Worker Rule Under the U.S. - Finnish Agreement

A. Definition of a detached worker

A detached worker is an employee sent the employer in one country to work temporarily in the other country for the same employer or an affiliate of that employer.

B. Detached worker rule

Under the agreement, a detached worker remains subject only to the social security laws of the country from which the employer transferred the worker. However, the worker must meet both of the following conditions.

  • The employer/worker expects the period of employment in the host country to last five years or fewer. The five-year period begins with the date the employment in the host country begins or November 1, 1992, (the effective date of the agreement) whichever is later.

  • The employment relationship existed before the employer transferred the worker from the home country.

Additionally, if an American employer sends an employee to that employer's affiliate in Finland, for the detached worker rule to apply, there must be an agreement in effect between the American employer and the Internal Revenue Service (IRS) under section 3121(1) of the Internal Revenue Code with respect to the affiliate. The section 3121(1) agreement provides, among other things, for Social Security coverage for U.S. citizens and residents that the affiliate employs. In such cases, the employer must still obtain a U.S. certificate of coverage to establish the exemption from Finnish social security taxes.

The detached worker rule may apply even if the employer does not send the employee directly from one country to the other but first assigns the employee to work in a third country.

C. Reference

Agreement under section 3121(l) of the Internal Revenue Code, RS 01901.070


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302001715
RS 02001.715 - Detached Worker Rule Under the U.S. - Finnish Agreement - 10/05/2022
Batch run: 10/05/2022
Rev:10/05/2022