What tax issues do foreign temporary workers or their employers need to be aware of?
If the foreign temporary worker is a new hire in France by a French employer, then the worker would be subject to French social security and need to be recorded on the employee register. He would also be subject to French income tax. For transferred technical workers who remain on the payroll of the foreign transferee company, however, the employee would not be subject to French social security where a bilateral social security treaty exists between France and the country from which he/she is transferred, such as the U.S., where the U.S. Social Security Administration needs to provide form SE-404-2. Indeed the Franco-U.S. Social Security Convention precludes liability for French social security coverage provided that the individual’s employment relationship remains exclusively subject to U.S. law, and the transfer does not exceed five years. With regard to French income tax, the foreign worker would not be subject to French income tax if (1) he or she continues to be paid by the foreig
