📣 ⏰ #A1 #socialsecurity #frameworkagreement #crossborderemployees #globalmobility 📆
ACTION to take before 30 June 2024
If you have cross-border employees that started working (more) from home in the aftermath of COVID-19, as per our previous news alerts, the Framework Agreement allows you to act and ensure their social security position for upcoming periods. Whilst possibilities to act retrospectively are increasingly limited from 1 July 2024, securing agreement for new and ongoing arrangements on a go forward basis remains a good option.
The rules in the EU/EEA teleworkers Framework Agreement on social security give the employee the possibility to work from home up to 50% of the work time, but only if the employer and employee opts into this solution. As noted previously in our publications, the solution can be applied retroactively if certain conditions apply, including the filing of an application BEFORE 30 June 2024 (1 year from 1 July 2023, when the Framework Agreement was formally launched).
If the A1 application is filed after 30 June 2024, the application will only have retroactive effect for 3 months, meaning that the employee may be covered in the country of residence, if the employee has been working 25 % or more in that country since 1 July 2023.
Should you have started looking into this topic already, we have compiled below a list of actions we recommend considering in June 2024:
Identify the EU/EEA cross-border commuter population.
Collect and review calendar material for the period 1 July 2023 - YTD.
Opt into the Framework Agreement on a case-by-case basis and file retroactive A1 applications for the individuals that have been working 25 % or more in their country of residence.
Identify alternative solutions for individuals that are not covered by the Framework Agreement.
Specifically for individuals that are preparing the 2023 tax return:
If the tax calendar data indicates that 25 % or more of the work was performed in the country of residence, this is a red flag.
Please find this video presentation, describing the EU Framework Agreement: https://lnkd.in/d9FMTqxJ (please note that this is a short version of the video. Should you wish for a free extensive version describing further details of the Framework Agreement, please reach out to us).
However, worry not if this is a matter you have just started to consider. Whilst the 30 June 2024 deadline may not be achievable, we can still help and work with you to ensure the beneficial provisions under the Framework Agreement can apply for your employees on a go forward basis.
Please do not hesitate to reach out, should you wish to discuss this topic and explore some of the solutions and suggestions Vialto Partners, through its network of subject matter experts, have extensively developed and deployed.