This page provides an overview of the Enhance Automatic Social Tax? tax position, which can be used to apply partial social security agreements for moves between the listed countries for cost estimates and U-Calcs. As of Equus Tax Engine v.26.1, this feature is supported for travel between the following countries:
Enhanced Automatic Social Tax allows partial calculation of social security under an agreement, unlike the standard Automatic Social Tax Feature, which applies an “all or nothing” approach (all home elements calculated, all host elements excluded).
If Enhanced Automatic Social Tax is set to Yes but the travel lane is not listed, the default “all or nothing” rule applies.
This feature works in conjunction with Automatic Social Tax to include relevant home and host elements where partial exclusions apply.
Example: For an outbound from Germany to China who breaks German tax residency, pension and unemployment contributions remain in Germany under the totalization agreement, while health and injury contributions are paid in China. See the flowchart for detailed logic.
Example - Home Actual Social Security
Example - Home Hypo Social Security
Example - Host Actual Social Security
When Enhance Automatic Social Tax? is set to Yes, see below diagrams for results for both Temporary and Permanent moves. Note there is different behavior for temporary moves using Tax Equalization versus Grossup Only tax calculation methods.
Permanent Moves are assumed to use the Grossup Only method.
