Anyone who wants more information about the U.S. Social Security Totalization Agreements program — including details about some existing agreements — should write: Other features of U.S. legislation increase the likelihood that foreign workers in the U.S. will also be subject to dual coverage. U.S. law provides for mandatory social insurance for services provided in the United States as workers, regardless of the worker`s or employer`s citizenship or country of residence and regardless of the length of the worker`s stay in the United States. Unlike many other countries, the United States generally does not provide coverage exceptions for non-resident foreign workers or for workers posted within its borders for a short period of time. This is the reason why most foreign workers in the United States are covered by the U.S. program. Turkish employers are required to pay wages through the pay slip and to apply withholding taxes on wages paid on behalf of workers. Employers are responsible to the tax office for the correct calculation, filing and payment of withholding taxes on wages. Wage income is taxed on a progressive basis with rates between 15 and 40% The payment of double social security contributions is particularly costly for companies that offer “tax compensation rules” to their expatriate employees.

A company that sends an employee to another country often guarantees that the use will not result in a reduction in the employee`s after-tax income. Therefore, employers who have tax equalization programs generally agree to pay both the employers` and workers` share of the host country`s social security taxes on behalf of their transferred employees. The agreements also have positive effects on the profitability and competitive position of companies with foreign activities by reducing their operating costs abroad. Companies that have expatriate staff are encouraged to use these agreements to reduce their tax burden. Any agreement (with the exception of the one concluded with Italy) provides for a derogation from the territoriality rule, which aims to minimise disruptions in the coverage of the careers of workers whose employers temporarily send them abroad. Under this derogation for “exempted workers”, a person temporarily transferred to another country for the same employer remains covered only by the country from which he or she was posted. A U.S. citizen or resident who, for example, is temporarily transferred by a U.S. employer to work in a contracting country, is still covered by the U.S. program and is exempt from coverage under the host country system.

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