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Foreign Affiliate and Compensation


Guest friedbrain

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Guest friedbrain
Posted

For purposes of Sec. 415, is "compensation" for U.S. employees of a foreign affiliate calculated differently if wages are partially or fully paid in foreign currency? Sec. 406(B)(2) provides that "compensation" for purposes of Sec. 401(a)(5) includes "all remuneration" which suggests that wages paid both in foreign and US currency is considered compensation. Any thoughts?

Guest friedbrain
Posted

I've found the answer/confirmation through legislative history of Sec. 406. Compensation includes wages in the form of foreign currency which must be valued according to current law.

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