Under the agreement, a detached worker remains subject only to the social security
taxation and coverage laws of the country from which the employer transferred him
or her; however, the worker must meet all the following conditions:
The employer/worker expects the period of work in the host country to last no more
than five years. The five-year period begins with the date the work in the host country
begins or May 1, 2014, (the effective date of the agreement) whichever is later.
The employment relationship existed before the employer transferred the worker from
the home country.
If an American employer sends an employee to the company's affiliate in the Slovak
Republic, the American employer must enter into an agreement with the Internal Revenue
Service (IRS) under section 3121(l) of the IRS Code. The 3121(l) agreement provides,
among other things, social security coverage for U.S. citizens and residents employed
by the affiliate. In such cases, the employer must still obtain a certificate of coverage
to establish the exemption from the Slovak Republic social security taxes.