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.