RS 02002.015 Detached Worker Rule under the Australian Agreement
A detached worker is an employee who is sent by his or her employer in one country to work temporarily in the other country for the same employer or an affiliate of that employer.
Under the agreement, a detached worker remains subject only to the laws of the country from which he or she was sent provided all of the following conditions are met.
The period of employment in the host country is expected to last no more than 5 years. The 5-year period begins with the date the employment in the host country begins or 10/1/2002 (the effective date of the agreement) whichever is later.
The employment relationship existed before the employee is transferred from the home country.
If an employee is sent by an American employer to become an employee of the company's affiliate in Australia, the American employer has entered into an agreement with the Internal Revenue Service under section 3121(l) of the Internal Revenue Code to provide Social Security coverage for U.S. citizens and residents employed by the affiliate.
If an employee is sent by an Australian employer to become an employee of a related company in the United States, the related company must be a member of the same wholly or majority owned group as the Australian employer under the applicable provisions of Australian law.
Refer individuals who want information about related companies under Australian law to the Australian Taxation Office web site at www.ato.gov.au on the Internet.
Agreement under Section 3121(l) of the Internal Revenue Code, RS 01901.070
American employer defined, RS 01901.050