Updated on: 2025/08/04 14:35 (UTC)
Overview
Slovakia, which officially is known as the Slovak Republic, is located in Eastern Europe and is bordered by the Czech Republic to the northwest, Poland to the north, Ukraine to the east, Hungary to the south, and Austria to the southwest. Slovakia is a member of the European Union and the Organization for Economic Co-operation and Development. There are eight first-order administrative regions, or kraje, in Slovakia. They are Banskobystricky, Bratislavsky, Kosicky, Nitriansky, Presovsky, Trenciansky, Trnavsky, and Zilinsky.
Slovakia’s currency is the euro.
Employers are required to withhold income taxes and social taxes from all employees. Employers are also required to contribute to health insurance and uphold standards for compensation and benefits.
Foreign workers in Slovakia generally are subject to the same income tax and social tax regulations as Slovak citizens. Foreign workers are also covered by the same labor laws as Slovak citizens when dealing with compensation and benefits.
Slovak residents working in the United States are covered by U.S. tax law with possible treaty and work status exclusions applying. Work within the U.S. states and territories is covered by various labor laws.
CURRENCY DETAILS
The currency of Slovakia is the euro (€), which Slovakia uses because it is part of the euro area, also known as the eurozone, which is a group of countries that adopted the euro as their currency. The internationally recognized three-letter currency code for the euro is EUR, which also is one of the currency’s two commonly used currency symbols. The English plural form of euro officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is euros. In Slovak, the plural form of euro is eurá, eura, eúr, or eur, with usage depending on context.
When an amount of euro is written using the currency symbol € in accordance with the European Commission’s standard placement treatment of the symbol, which is the placement treatment used for the English language, the symbol precedes the numerical value with no space between the numerical value and symbol. When an amount of euro is written in Slovak using the currency symbol €, the symbol follows the numerical value with a space between the numerical value and symbol.
When an amount of euro is written using the currency symbol EUR, the symbol precedes or follows the numerical value with a space or no space between the numerical value and symbol.
One hundredth ( 1 ⁄ 100 ) of a euro is referred to in English as a cent and the English plural form of cent officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is cents. In Slovak, as officially recognized by the European Commission, one hundredth of a euro also is referred to as a cent and its plural form is cents, although in common Slovak parlance, the plural form of cent is centy or centov, with usage depending on context.
When amounts of euro are written in Slovak, the comma that in English separates the thousands place from the hundreds place instead is rendered as a space, and the dot (.) that in English separates the ones place from the tenths place instead is rendered as a comma.
Digital Currencies: The value of digital currency is taxable under the Income Tax Act, as amended July 18, 2018. The amendments to the act generally took effect Oct. 1, 2018, but the digital currency provisions of the amended tax law took effect Jan. 1, 2019. The taxable value of digital currency when used as a payment instrument is the digital currency’s equivalent euro-currency value on the day of the transaction. Under the act, a virtual currency has a value that is not issued by the central bank or public authorities, and it is not necessarily “linked to legal tender, does not have the legal status of currency or money, but is accepted” as payment and may be transferred, stored, or electronically traded. Proceeds from sales of virtual currency are subject to tax.
The European Banking Authority does not consider digital currencies to be legal currency. However, under a 2015 ruling by the European Court of Justice, bitcoin generally is considered a currency rather than a property for tax purposes in the European Union. Under the ruling, digital currency transactions are exempt from value-added tax (VAT) under a provision regarding transactions pertaining to currency, bank notes, and coins that are used as legal tender.
TAXES
The federal government generally enacts laws relating to income tax, social tax and health insurance.
The tax year is the calendar year, Jan. 1 to Dec. 31.
Coronavirus (Covid-19) Guidance: Employers may apply to the Social Insurance Agency to postpone deposits of the employer portion of social taxes that were due for March, May, June, July, and December 2020, January through May 2021, and October through December 2021. Deposits for those months would be due at varying quarter-end dates in 2021 through 2024.
To apply, employers must have in general experienced a decrease in income of 40% for a month compared with the same month of the previous year, or compared with the same month of 2019 starting with March 2021, or compared with February 2020 if the employer was not in business in the given comparison month. Other comparisons, such as to monthly average incomes in 2019 or 2020, may be used for specific months concerned.
Late penalties for income tax withholding returns or payments that were due from March 12 to Dec. 31, 2020, are waived if the return or payment is made by June 30, 2021.
According to European Commission guidance, employees who normally work in one European Union member country and live in another are still considered to be insured by the social insurance system of the normal work country while working at home.
Income Taxes
Slovakia’s Income Tax Code is administered by the Tax Directorate of Slovakia and the Ministry of Finance.
Coverage: All who are resident in Slovakia or who are in Slovakia for 183 days or more in a calendar year are covered by the income tax law and are subject to Slovak tax on their worldwide income.
Employees: An employee is considered to be a taxpayer who receives income from employment, according to the income tax law.
Rates and Thresholds: Each year, an employee’s income is taxable at a flat rate of 19% up to a threshold amount of annual wages, and additional income that exceeds that threshold is taxed at a rate of 25%. The annual threshold in effect for a year equals 176.8 multiplied by the applicable monthly subsistence minimum wage (zivotné minimum) in effect for tax calculations for the year, which is the monthly subsistence minimum wage for one adult in effect as of July 1 of the previous year. The monthly threshold for a year equals the annual threshold for that year divided by 12. The monthly subsistence minimum wage also is known as the monthly living wage.
Effective for 2022, the annual threshold is €38,553.01 and the monthly threshold is €3,212.75, based on the July 1, 2021, monthly subsistence minimum wage for one adult of €218.06. Effective for 2021, the annual threshold is €37,981.94 and the monthly threshold is €3,165.16, based on the July 1, 2020, monthly subsistence minimum wage for one adult of €214.83.
Registration: All employers are required to register with the tax authority. Employers are required to register their employees with the tax authority by the end of the month following the month for which income must be withheld for the employee.
Taxable Amounts: Amounts taxable for income tax include any business income, income from self-employment, income from rental property, revenue from work or artistic performance, investment income and several types of other income (including income from the transfer of options and securities, pensions and similar recurring benefits).
Withholding Methods: Employers are required to withhold income tax at the time of payment of wages to employees.
Returns and Remittance: Employers are required to submit income tax payments in the form of a tax advance either quarterly or monthly. Quarterly payments must be submitted, by the end of the quarter in question, for employees owing between €2,500 and €16,600 in income tax from the previous year.
Monthly payments are required for employees owing more than €16,600 in income tax from the previous year. These are due by the end of each month.
An employee is covered by the annual income tax return filing requirement for a particular year if the employee was paid more than 10.5 times the applicable monthly subsistence minimum wage for that year.
Effective for 2022, an employee is covered by the annual income tax return filing requirement if the employee was paid more than €2,289.63 during the year, based on the July 1, 2021, monthly subsistence minimum wage for one adult of €218.06. Effective for 2021, an employee is covered by the annual income tax return filing requirement if the employee was paid more than €2,255.72 during the year, based on the July 1, 2020, monthly subsistence minimum wage for one adult of €214.83.
When an employee is covered by the annual income tax return filing requirement, Form Type A would be used for reporting income derived from employment and Form Type B would be used for reporting other income.
Employee Share Plans: According to the law firms White & Case LLP and DLA Piper, the spread of an option from an employee share plan is taxable at purchase for the employee. If any gain is realized upon the sale of a share, employees must pay income tax on the gain at the appropriate flat rate.
The spread of an option on purchase may be subject to social insurance and health insurance contributions, but according to White & Case LLP, this is unlikely as the calculation base for social insurance and health insurance is capped.
Recordkeeping: All payroll documentation must be kept five years from the end of the relevant year. Documentation supporting personal income tax reporting must be kept 10 years from the end of the year when personal income tax return was submitted.
Penalties: A failure to uphold the income tax law, including a failure to submit necessary forms or a delay in submitting necessary forms, can result in a fine from the tax authority of up to €1 million.
Social Taxes
Slovakia’s Social Insurance Agency (Sociálna Poistovna) oversees the assessment and collection of numerous types of social insurance, including pension insurance (dôchodkové poistenie), which also is known as old-age insurance (starobné poistenie); sickness insurance (nemocenské poistenie); disability insurance (invalidné poistenie); occupational injury and illness insurance, which in Slovakia is referred to simply as accident insurance (úrazové poistenie); unemployment insurance (poistenie v nezamestnanosti); and guarantee insurance (garancné poistenie), which insures against employer insolvency.
The Social Insurance Agency also administers assessments for the country’s solidarity reserve fund (rezervného fondu solidarity), which provides supplemental funding for social insurance benefits when needed.
Coverage: All employees and self-employed individuals in Slovakia are covered by the Social Insurance law. All employers, defined as those hiring employees for employment, are required to register with the Social Insurance Agency.
Rates and Thresholds: Slovakia has a maximum monthly amount of employment income paid to an employee upon which the employee and employer may be assessed social insurance taxes. In Slovakia, this maximum monthly amount of assessable employment income also is known as the maximum assessment base (maximálny vymeriavacieho základu, with VZ often used as an abbreviation for vymeriavacieho základu).
Effective for 2022, the maximum monthly amount of employment income paid to an employee upon which the social insurance taxes, except accident insurance taxes, were assessed on the employee and employer is €7,931. Effective for 2021, the maximum monthly amount of employment income paid to an employee upon which the social insurance taxes, except accident insurance taxes, were assessed on the employee and employer was €7,644.
Accident insurance taxes, unlike other types of social insurance taxes, are not subject to a monthly maximum amount of employment income upon which they may be assessed.
Employers are assessed the following social insurance tax rates:
- 14% for pension insurance;
- 3% for disability insurance;
- 1.4% for sickness insurance;
- 1% for unemployment insurance;
- 0.8% for accident insurance;
- 0.25% for guarantee insurance; and
- 4.75% for the solidarity reserve fund.
Employees are assessed the following social insurance tax rates:
- 4% for pension insurance;
- 3% for disability insurance;
- 1.4% for sickness insurance; and
- 1% for unemployment insurance.
The pension insurance tax rate of 14% assessed on employers based on employment income paid to an employee funds one or two types of pensions based on whether the employee is at least 35 years of age and whether an employee, if younger than 35 years of age, chooses to have the social insurance taxes paid by the employer directed to both types of pensions.
The first of these types of pension, also known as the first pillar (I. pilier), is a defined-benefit system that is administered by the Social Insurance Agency. The second of these types, also known as the second pillar (II. pilier), is a defined-contribution system that is administered by one of the government-approved private pension management companies (dôchodkové správcovské spolocnosti, abbreviated as DSS). Employees who are at least 35 years of age must have the pension insurance taxes paid by their employer split between both the first pillar and second pillar. An employee younger than 35 years of age may choose to have the employer notify the Social Insurance Agency that the employer portion of the pension insurance taxes assessed on the employment income paid to the employee will be split between the agency and a private pension management company. If an employee younger than 35 years of age makes this choice, the employee must continue to have part of the employer portion allocated to the employee’s account with a private pension management company.
Effective through Jan. 1, 2024, the split between contributions for the first and second pillars is adjusted each Jan. 1.
Effective for 2022, the employer portion of pension insurance tax on employment income paid to an employee for whom contributions are split between the first pillar and second pillar consists of a rate of 8.5% for the first pillar and 5.5% for the second pillar. The percentages respectively are 8.25% and 5.75% for 2023 and 8% and 6% starting with 2024. Effective for 2021, the employer portion of pension insurance tax on employment income paid to an employee for whom contributions are split between the first pillar and second pillar consists of a rate of 8.75% for the first pillar and 5.25% for the second pillar.
In addition to contributions to the first and second pillars, employees may choose to acquire supplementary pension insurance, which sometimes is referred to as the third pillar (III. pilier).
Registration: Employers must register themselves and their employees with the Social Insurance Agency within eight days of employing their first employee.
Taxable Amounts: According to the Social Insurance Agency, the assessment base for social tax contributions is the same as that for income tax.
Withholding Methods: Employers withhold social contributions from an employee’s paycheck at the rates listed on the Social Insurance Agency website.
Returns and Remittance: Social insurance payments are due on the eighth day of the calendar month following the month for which payments are paid.
Recordkeeping: All payroll documentation must be kept five years from the end of the relevant year.
Penalties: Employers who fail to pay social insurance contributions will be fined 0.05% of the contribution amount for each day that the contribution is delayed. Other breaches of the Social Insurance Agency Act can result in fines of up to €16,596.96.
Other Taxes
Health Insurance is mandatory in Slovakia, but it is not part of the social insurance program. Employers are required to contribute to public health insurance, which is managed by three different health insurance agencies, mainly the General Health Insurance Agency, which are administered by the Ministry of Health in Slovakia.
Coverage: All Slovak citizens are entitled to health insurance. Health insurance also applies to any natural person in Slovakia who is not a resident.
Rates and Thresholds: Employers are required to contribute 10% of payroll to the health insurance fund. Employees are required to contribute 4% of earnings to health insurance.
Registration: Employers are required to register employees with a health insurance agency once an employee begins work.
Taxable Amounts: Amounts subject to health insurance contributions include the same amounts taxable for income tax in Slovakia.
Withholding Methods: Employers are required to withhold health insurance contributions at the rates prescribed by the Ministry of Health.
Returns and Remittance: Employers must file returns and remittances monthly to the appropriate health insurance agency. Monthly returns and remittances are generally due the last day of the monthly following the month in question that contributions are due. Returns and remittances can be made electronically to the appropriate health insurance agency.
Employers with more than three employees are required to submit returns and remittances only electronically.
Recordkeeping: Health insurance records must be kept for 10 years by the employer.
Penalties: Late payments will face a penalty of a 15% interest rate. Fines also are assessed for not fulfilling reporting obligations.
State/Jurisdiction Taxes
Taxes on employment income are not assessed by Slovakia’s kraje or local jurisdictions.
COMPENSATION AND BENEFITS
The Labor Code in Slovakia covers minimum wage, overtime, hours of work, holidays, leave, wage payment and termination pay. Workers’ compensation and retirement plans are covered under social taxes.
The Labor Code is administered by the Ministry of Labor, Social Affairs, and Family in Slovakia.
Coronavirus (Covid-19) Guidance: Qualified employers may apply for a wage-replacement program administered by the Ministry of Labor, Social Affairs, and Family.
Employers that had to shut down operations may be eligible for 80% of wages (up to a maximum of €1,100).
Employers that were able to operate despite interruption or reduction in operations may be eligible for 80% of wages, up to a maximum of €1,100, or for a flat rate of relief depending on sales lost.
A decrease in sales of:
- at least 20% and less than 40% is worth €270 per employee;
- at least 40% and less than 60% is worth €450 per employee;
- at least 60% and less than 80% is worth €630 per employee;
- at least 80% is worth €810 per employee.
Applications for a given month may be submitted through the Central Public Administration Portal until the end of the second month following the given month.
Minimum Wage
Slovakia has a national monthly minimum wage and a national hourly minimum wage. Slovakia’s national hourly minimum wage is uncommon among minimum wages in that it includes a numerical value in the thousandths place. The national hourly minimum wage is calculated through dividing the national monthly minimum wage by 174 and rounding the result to the nearest thousandth.
Effective for 2022, the national monthly minimum wage is €646 and the national hourly minimum wage is €3.713. Effective for 2021, the national monthly minimum wage is €623 and the national hourly minimum wage is €3.58. .
Overtime
Weekly working hours, including overtime hours, generally cannot exceed 48 hours.
Employees generally must be paid their regular pay plus an overtime premium of 25% of their regular pay for overtime hours worked, although an overtime premium of 35% of regular pay is applicable to overtime hours worked by employees performing hazardous work.
Employers cannot make employees work more than 150 hours of overtime in a calendar year and 250 hours in a calendar year if they are medical staff. However, employees may voluntarily work up to 400 hours of overtime annually.
Employees who work on a holiday or a day of rest are entitled to 150% of normal remuneration.
Effective since May 1, 2019, employees are entitled to a premium of at least:
- 50% for work on Saturdays;
- 100% for work on Sundays;
- 40% for night-shift work; and
- 50% of night-shift work in high-risk jobs.
Hours of Work
Regular work time is eight hours per day and the maximum work time per week is 40 hours. A normal work week is five days per week, with two days being rest days. Rest days are generally Saturday and Sunday or Sunday and Monday. Including overtime work, an employee cannot work more than 48 hours a week, except for employees in certain sectors such as health care workers, who may not work more than 56 hours a week.
Employees working at night, defined as work done between the hours of 10 p.m. and 6 a.m., are entitled to 120% of normal remuneration.
Holidays
The paid public holidays specified in Slovakian law are:
- Jan. 1: Slovak Republic Day;
- Jan. 6: Epiphany;
- Good Friday, the Friday immediately before Easter Sunday;
- Easter Monday, the Monday immediately after Easter Sunday;
- May 1: Labor Day;
- May 8: Victory Over Fascism Day;
- July 5: Sts. Cyril and Methodius Day;
- Aug. 29: Anniversary of the Slovak National Uprising;
- Sept. 1: Constitution Day;
- Sept. 15: Day of Our Lady of Sorrows;
- Nov. 1: All Saints’ Day;
- Nov. 17: Struggle for Freedom and Democracy Day; and
- Dec. 24 to 26: Christmas Eve, Christmas Day, and the second day of Christmas.
Slovakia’s holiday law does not provide for the movement of holidays if they occur on weekends.
Leave
The amount of paid annual leave that must be granted to an employee is commonly referred to in Slovakia as the basic annual leave allowance (základná výmera dovolenky).
All employers must give employees at least four weeks of paid annual leave, although employees can be eligible for an additional paid annual leave.
Employees who are at least 33 years of age must be granted five weeks of paid annual leave.
Effective since Jan. 1, 2020, employees younger than 33 years of age but who care for a child on a permanent basis must be granted five weeks of paid annual leave.
Additionally, employees who perform difficult or hazardous work are entitled to an additional week of annual leave beyond those to which they otherwise would be entitled.
Marriage Leave: Employees are entitled to one day of paid leave to be married.
Bereavement Leave: Employees are entitled to two days of paid leave following the death of a spouse or a child and another day to attend the funeral. Employees are entitled to one day of paid leave to attend the funeral of a close relative and another day if the employee arranges the funeral.
Maternity Leave: Employers must give female employees 34 weeks of maternity leave, 37 weeks if they are a single mother, and 43 weeks of maternity leave if giving birth to more than one child at a time.
The employer is not required to pay the employee during the maternity leave, as maternity leave is paid by the Social Insurance Agency.
Parental Leave: Following maternity leave, mothers or fathers may take parental leave until the child’s third birthday. If the child has serious long-term health problems, parental leave is available until the child reaches age six.
Sick Leave: Employers are required to pay the employee during the first 10 days of sick leave. The Social Insurance Agency compensates employees for sick days taken after the 10th day. Employers must also give employees seven days per year of paid leave for treatment or assessment in a medical facility.
Wage Payment
Wages are required to take the form of a financial settlement or a settlement of financial value provided by the employer to the employee.
Bonuses and Special Benefits
It is customary for employers to pay annual bonuses to employees in an amount equal to two months of salary, sometimes referred to as the “13th and 14th month salaries,” but it is not required. The 13th month salary typically is paid each June, and the 14th monthly salary typically is paid each December.
The 13th month salary is exempt from income taxes and social security contributions of up to €500 for employees who have worked for at least two years with the company providing the 13th month salary. Effective since Jan. 1, 2020, the 14th month salary also is exempt from income taxes and social security contributions of up to €500 for employees who received the 13th month salary and who have worked for at least four years with the company providing the 14th month salary.
Termination Pay
Employees are entitled to severance pay at least equal to:
- their average monthly earnings if they have worked for the employer at least two and less than five years;, or
- double their average monthly earnings if they have worked for the employer at least five and less than 10 years; or
- triple their average monthly earnings if they have worked for the employer at least 10 and less than 20 years; or
- quadruple their average monthly earnings if they have worked for the employer at least 20 years.
If terminated by notice given by the employer because: the employer changes the duties associated with the position, the employer closes or relocates its business, the employer makes technical advances in its operations, the employer reduces the number of its employees with the aim of increasing work efficiency, the employer makes other significant organizational changes, or the employee’s health deteriorates to the point that he or she can no longer perform the job functions; the employee will be entitled to severance pay at least equal to:
- their average monthly earnings if they have worked for the employer less than two years; or
- double their average monthly earnings if they have worked for the employer at least two and less than five years; or
- triple their average monthly earnings if they have worked for the employer at least five and less than ten years; or
- quadruple their average monthly earnings if they have worked for the employer at least 10 and less than 20 years; or
- five times their average monthly earnings if they have worked for the employer at least 20 years.
Workers’ Compensation
Workers’ compensation is covered under social taxes.
Recordkeeping
Slovakia’s compensation and benefit recordkeeping laws could not be confirmed.
FOREIGN WORKERS
Foreign workers are entitled to the same rights as Slovak citizens and are generally covered by the same tax and workplace laws. Citizens from the European Union and the European Economic Area do not need a visa to travel or work within Slovakia.
Visas: Slovakia is part of the Schengen Zone, which allows free movement of goods and people through many countries in Europe. Individuals entering Slovakia from within the Schengen Zone can stay in Slovakia for 90 days in a 180 day period without a visa. Foreign workers from the United States are also entitled to this stay.
Individuals entering Slovakia for business that will stay longer than 90 days in a 180 days period can apply for temporary residence or permanent residence. Specially skilled foreign workers can also obtain a Blue Card, which is issued by the police department of Slovakia. Individuals who receive the Blue Card must be paid at least 1.5 times the average monthly salary of Slovakia.
Taxes: Foreign workers in Slovakia are subject to the same flat rate income tax as Slovak citizens.
Wages/Payments: Wages shall be paid to employees in monetary form; payment in other forms or payment in foreign currency is possible only in specific cases.
WORKING IN THE UNITED STATES
Foreign workers from Slovakia must meet general visa requirements and be certified to be employed in the United States. General visa requirements for the U.S. are included in the separate
Slovakia is eligible for the visa waiver program for business visitors, which allows Slovakian citizens to travel to the U.S. for 90 days or less for business-specific purposes without having to obtain a B-1 business visa. Stays longer than 90 days will require a visa. Individuals may return to the U.S. under the visa waiver program if a “reasonable length of time” has passed. The determination for a reasonable length of time is at the discretion of the Department of Homeland Security.
Slovak workers are eligible to work in the U.S. under H-2B visas, which cover labor or services of a temporary or seasonal nature in occupations other than agriculture or registered nursing. The number of H-2B visas issued each year is limited by U.S. law.
U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.
For tax purposes, Slovaks are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under certain tax treaty provisions or they work under specific visa types that exempt earnings from taxes.
Slovakia has both a tax treaty and a social tax totalization agreement with the U.S.
State and local taxation of Slovak workers also can apply, although some states within the U.S. recognize international tax treaties that can eliminate that income tax liability for foreign workers.
The U.S. labor laws apply to all workers employed and providing services in the country.
Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.
Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the
Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.
Income Taxes: Generally, nonresidents in the U.S. who are from Slovakia and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.
A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Slovakia and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c.
Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the
Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.
An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the
Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.
Tax treaties: Slovakia and the U.S. have a tax treaty with provisions addressing host country taxation of the nonresident workers. A summary of those benefits is listed in the Tax Treaty Exemption Comparison Chart. To claim the treaty benefit, the nonresident must file Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with the employer.
Students, trainees, teachers and researchers in particular must include a statement with Form 8233 to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. This statement affirms that the student, trainee, teacher or researcher is temporarily in the U.S. for purposes of studying or has accepted an invitation by the U.S. government (or by a political subdivision or local authority) for the purpose of teaching or engaging in research for a period not expected to exceed two years by a university or other recognized educational institution in the U.S. It also must affirm that the individual will receive compensation for services performed in the U.S. The student exemption is not to exceed $5,000 a year for Slovak citizens.
Examples of the statements necessary to claim a treaty exemption from U.S. taxes are included in Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens.
Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.
Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the United States.
Totalization Agreements: Social Security totalization agreements can allow foreign workers and U.S. nationals working abroad to avoid paying into two social security systems while being subjected to losing benefits for their home country system. Under totalization agreements, generally, foreign workers will only pay into one of the social security systems- either the home or the foreign system- but not both. Foreign nationals, utilizing a totalization agreement, also can count years of contributions paid to different social security systems to all of the systems they have contributed to in order to be eligible for benefits in one country.
Slovakia and the U.S. have entered into a totalization agreement and a summary of those provisions is included in
Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.
There are no particular requirements that employees be paid in U.S. dollars.
TREATY ARRANGEMENTS
Slovakia has entered into more than 65 income tax treaties, including an income tax treaty with the United States. Slovakia also has more than 15 totalization agreements for social tax coverage purposes, including one with the United States.
Slovakia’s tax treaties are available in
RESOURCES
General
Government of Slovakia (Slovak)
CIA World Factbook: Slovakia
U.S. State Department: U.S. Relations With Slovakia
Currency Details
Unicode Consortium: Currency Symbols
International Organization for Standardization: Currency Codes - ISO 4217
United Nations: United Nations Terminology Database: Slovakia
Slovakia Law No. 213/2018 (Slovak)
Taxes
Ministry of Finance
Financial Administration (Slovak)
Income Tax Act (Slovak)
Social Insurance Agency (Slovak)
U.S. Social Security Administration, Social Security Programs Throughout the World: Slovakia
Government Regulation No. 131/2020 (Slovak)
Regulation Regarding Covid-19 Penalty Waivers (Slovak)
Compensation and Benefits
Ministry of Labour, Social Affairs, and Family (Slovak)
Ministry of Labour, Social Affairs and Family,2021 Minimum Wage (Slovak)
Labor Code (Slovak)
Act Extending Paid Vacation for Young Employees With Children (Slovak)
Foreign Workers
The Embassy of the Slovak Republic in Washington, D.C.
Ministry of Labour, Social Affairs, and Family: Information for Foreigners
Working in the United States
U.S. Department of Labor:
- Foreign Labor Certification
- Hiring Foreign Workers
U.S. Internal Revenue Service:
- IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
- IRS Publication 15, Circular E, Employer’s Tax Guide
- IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties
U.S. Department of State, Visa Waiver Program
Treaty Arrangements