Effective Dates: 10/18/2022 - Present Previous | Next

TN 22 (10-22)

RS 02002.230 Self-Employment Rule under the Agreement with Poland

A. Introduction

Generally, work activity considered self-employment under U.S. Social Security law is self-employment under Polish law. In certain cases, however, a person may be engaged in an activity that is considered self-employment by one country and employment by the other country. For example, under U.S. law, ordained ministers and members of the board of directors of a corporation are considered self-employed. Under Polish law they may be considered employees. The following subsections explain coverage laws for such workers under the Agreement.

B. Policy for the self-employment rule to apply

1. Activity is self-employment in both countries

If the work activity is considered self-employment by both countries, the worker is covered only by the country of which the worker is a resident.

2. Activity is self-employment in only one country

If the work activity is considered self-employment under the laws of one country and employment under the laws of the other country, the worker’s coverage is determined as follows:

  • •

    A worker who is a resident of the country that considers the activity to be self-employment is covered under the laws of that country.

  • •

    A worker who is not a resident of the country that considers the activity to be self-employment will be subject to the laws of the other country.

C. Process documenting exemption from paying U.S. Social Security self-employment taxes

A self-employed U.S. citizen who is subject only to Polish law under the agreement and is exempt from paying Social Security self-employment (SECA) tax must still file a U.S. tax return every year. When preparing the income tax return, the worker should show that the earnings are exempt from SECA under the agreement and attach a photocopy of the certificate of coverage issued by the Polish authorities as proof of the exemption.

D. Reference

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    RS 02002.245, Certificates of Coverage under the Agreement with Poland

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302002230
RS 02002.230 - Self-Employment Rule under the Agreement with Poland - 10/18/2022
Batch run: 10/18/2022
Rev:10/18/2022