FICA & Medicare - UK/USA Totalization agreement - UK citizen.

[sinky100]

Background:

*UK citizen working offshore in USA GoM.
*Live in UK.
*Pay US Taxes currently, excluding FICA & Medicare.

The UK based company that I work for initially indicate that under the UK-USA Totalization agreement, I would not have FICA & Medicare deducted from my salary.
Now they are requesting that I obtain an exemption certificate from the UK tax authorities.
My question is: is this correct, or does the factor of a Totalization agreement in place negate this requirement, i.e. is it necessary to prove payment of local (UK) social security payments.

I ask because under UK tax laws, I am not required to pay the UK's "FICA & Medicare" equivalent.

Thanks for any help,
Sinky100

 

[rtuncap]

It would appear that regardless of whether you are required to produce an exemption certificate or not, your situation would be made easier by just providing the certificate from the UK taxing authorities to your employer. It does seem odd, however, that being a UK-based company, they don't understand their own tax law. I hope this helps.

Russell Tuncap, CMA, CPA
www.tuncap. com