TN 7 (10-16)
RS 02002.360 Special Exceptions to the Coverage Rules under the Agreement with Hungary
A. Introduction to the special exception provision
The rules for eliminating dual coverage described in RS 02002.330 through RS 02002.355 cover the majority of situations where both the United States and Hungary would otherwise cover and tax a worker. However, these rules may not cover all situations; or, if applied, may have unintended results in certain cases. For this reason, the agreement includes a special exception provision.
B. Policy for obtaining a special exception
To assign a worker’s coverage, other than in accordance with the normal coverage rules of the agreement, an employer or self-employed worker may request a special exception. The exception must:
result in coverage under the laws of either the United States or Hungary, but not both; and
both countries must agree to grant the exception.
If either country does not agree with granting an exception, the agreement determines the worker's coverage in accordance with the applicable coverage rule.
RS 02002.330 General Coverage Rule for Employment under the Agreement with Hungary, through
RS 02002.355 Self-Employment Rule under the Agreement with Hungary