Under the Agreement, a detached worker remains subject only to the social security
laws of the country from which the employer transferred the employee. The following
conditions apply:
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•
The employer and employee expect the period of employment in the host country to last
five years or fewer. The five-year period begins with the date the employment in the
host country begins or November 1, 1991 (the effective date of the Agreement), whichever
is later; and
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•
The employment relationship existed before the employer transferred the employee from
the home country; and
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•
The American employer must enter into an agreement with the Internal Revenue Service
(IRS) under Section 3121(1) of the Internal Revenue Code with respect to the employer’s
affiliate, if an American employer sends an employee to that employer's affiliate
in Austria. The 3121(l) agreement provides, among other things, for Social Security
coverage for U.S. citizens and residents that the affiliate employs. In such cases,
the employer must still obtain a certificate of coverage to establish the exemption
from Austrian social security taxes. See RS 02001.690 for more information about certificates of coverage under the U.S. - Austrian Agreement.