TN 16 (11-96)

RS 02001.204 Scope of U.S. Norwegian Agreement

With respect to U.S. Social Security taxes, the agreement only applies to taxes under the RSDI program (i.e., FICA for employees and SECA for self-employed). It does include that portion of those taxes attributable to the hospital insurance program under Medicare. However, it does not include any taxes related to other programs such as Workmens Compensation or Unemployment Insurance. Thus, if an individual who was working in the U.S. was excluded from U.S. Social Security coverage under this agreement, neither the employee nor the employer share of the FICA tax or the SECA tax would have to be paid. However, the employee and employer share of any other employment related taxes would still be due.

With respect to Norwegian Social Security taxes the agreement applies to taxes under the Old-Age, Survivors, Disability, Death and Rehabilitation program in all cases. For those workers who are sent from Norway to work in the U.S. on a temporary basis and are exempt from U.S. taxes, it also includes taxes for Medical benefits, sickness benefits, unemployment benefits, employment injury benefits and unmarried mother's benefits. Thus, detached workers from Norway would have to continue to pay taxes for these benefits as well as the regular Social Security taxes. However, taxes for these benefits are not included within the scope of the agreement for detached workers from the U.S. who are exempt from Norwegian Social Security taxes. Thus, a detached worker from the U.S. who is exempt in Norway would have to pay U.S. Social Security taxes plus Norwegian taxes for the medical sickness, unemployment, employment injury and unmarried mother's benefits.