Need consultation for US-Switzerland tax situation when working remotely for Social Security

Hey guys, I've been offered a remote job with a Swiss company but I'm a US citizen living in California. I'm super confused about the tax and social security implications of this arrangement. From what I've read, there's some kind of totalization agreement between the US and Switzerland, but I'm not sure how that affects me as a remote worker. Would I be paying into both systems? Just US? Just Swiss? I currently make about $92,000 at my job here, and the Swiss offer is for roughly 110,000 CHF (about $127,000). I'm trying to figure out if this is actually a good move financially once all the tax complications are factored in. The HR person at the Swiss company wasn't very helpful and just said I should "consult with a tax professional familiar with international taxation." Has anyone here dealt with this specific situation between US and Switzerland? Any recommendations for consultants who specialize in this area? I need to give them my decision in 2 weeks and I'm stressing out!

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18 comments

Fatima Al-Maktoum

•8M

Working remotely for a foreign company can definitely create some complex tax situations, but it's manageable with the right information! For US-Switzerland arrangements, it depends on your employment classification. If you're classified as an employee of the Swiss company, the totalization agreement typically allows you to pay social security taxes to only one country, usually the one where you physically perform the work (so the US in your case). If you're working as an independent contractor, different rules may apply. Since you'll be physically working in California, you'll definitely owe US federal, state, and local taxes on your worldwide income. The Swiss company might need to register as a foreign employer in the US or establish a US subsidiary to properly handle your payroll taxes.

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Fatima Al-Maktoum

•8M

You're correct that you'd generally only pay into US Social Security since you're physically performing the work in the US. Under the US-Switzerland totalization agreement, you should be exempt from Swiss social security contributions as long as your employment isn't expected to last more than 5 years. Your Swiss employer should not withhold Swiss social security if they're properly informed of your situation. You'll need to obtain a Certificate of Coverage from the US Social Security Administration (Form US-101) to prove to Swiss authorities that you're covered under the US system. This prevents double taxation of social security.

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Dylan Mitchell

•8M

I was in a similar situation last year working for a German company while living in Oregon. The tax stuff was really confusing until I found taxr.ai (https://taxr.ai). Their system analyzed my employment contract and explained exactly which forms I needed and what treaties applied to my situation. The coolest part was how they broke down my tax obligations by country - showed me exactly what I'd owe to the US vs potentially owe to Germany. They even helped me understand how the totalization agreement applied specifically to my situation. Way easier than trying to piece together info from different sources!

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Dylan Mitchell

•8M

They primarily provide consultation and document analysis, not the actual filing service. Their main value is breaking down exactly what you need to do and what forms you need. I still used my regular accountant for the actual filing, but with much clearer instructions. They were spot on with the advice. I actually had my accountant verify everything they told me, and he was impressed with the accuracy. The difference is they use actual tax treaty text and IRS international guidelines rather than general knowledge. They specifically identified a provision in the US-Germany treaty that saved me about $3,600 that my accountant hadn't known about.

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Dmitry Petrov

•8M

I wanted to follow up about my experience with taxr.ai. I decided to try them after being skeptical, and wow - totally worth it! I uploaded my Swiss employment contract and within a day got back a detailed analysis explaining exactly how the US-Switzerland totalization agreement would apply to me specifically. The report showed that I qualified for something called a "detached worker" exemption I hadn't even heard of before. This saved me from double taxation on social security contributions which would have been about $9,700 annually! They even provided the specific forms I needed to submit to both US and Swiss authorities. My accountant was actually relieved because he admitted international tax wasn't his specialty.

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StarSurfer

•8M

If you end up needing to contact the IRS about international tax questions, good luck getting through on the phone. I spent WEEKS trying to reach someone at the IRS International Taxpayer department. Then I found Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c. Basically they call the IRS for you, wait on hold, and then call you when an actual IRS agent is on the line. I was working in Switzerland last year and needed clarification on my FBAR requirements. Claimyr got me through to an actual IRS international specialist in about 45 minutes when I'd been trying on my own for days. The agent answered all my questions about foreign bank account reporting requirements and saved me from potentially huge penalties.

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StarSurfer

•8M

It's surprisingly simple but effective. They use automated systems to dial and stay on hold, then when an agent picks up, they connect you directly. You're the one who actually talks to the IRS agent - they just handle the hold time. You're not missing anything - it really is that straightforward. They don't actually talk to the IRS about your situation at all. When the IRS agent comes on the line, Claimyr connects the call directly to your phone. You're the only one who speaks with the agent about your tax matters. It's basically just a hold-waiting service, so there's no privacy issue because they never discuss your information with the IRS.

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Miguel Castro

•8M

I need to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I was desperate to resolve an international tax issue with a Swiss pension I received. I had been trying to reach the IRS for literally months without success. Used Claimyr yesterday, and within 1.5 hours I got a call connecting me directly to an IRS international tax specialist. The specialist confirmed exactly how to report my foreign pension on my US return and which treaty provisions applied. The amount of stress this relieved was incredible - I'd been worried about potentially misreporting about $32,000 of income. Completely worth it just to get a definitive answer from an official source rather than guessing.

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Zainab Abdulrahman

•8M

The foreign employer had no idea how to handle California taxes. They didn't withhold anything for state taxes, so I had to make quarterly estimated tax payments to the California Franchise Tax Board to avoid penalties. I got hit with an underpayment penalty the first year because I didn't realize I needed to do this. If you stay in California, definitely set up quarterly estimated payments right away. The FTB is much more aggressive than the IRS about collecting penalties! Also, document everything about where you physically work - California has been known to audit people who claim they've moved to Nevada but still actually work in California.

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