As a general rule, individuals should only take action on totalization benefits under an agreement when they are willing to apply for a pension, survival or disability. A person wishing to introduce a entitlement to benefits as part of a totalization agreement can do so with any social security agency in the United States or abroad. In order to provide the tax authorities of a host country with proof that a worker is exempt from paying that country`s social security taxes, he (or his employer) must keep and, if necessary, present a certificate of coverage. The certificate is a document issued by the country whose laws continue to apply to that person in accordance with the rules of the agreement. The agreements designate the agencies of each country responsible for issuing these certificates. The agreements also have a positive effect on the profitability and competitive position of companies operating abroad by reducing their business costs abroad. Companies with staff stationed abroad are encouraged to use these agreements to reduce their tax burden. You can also write to this address if you want to propose negotiating new agreements with certain countries. In developing its negotiating plans, the SSA attaches considerable importance to the interests of workers and employers who will be affected by potential agreements. Applications should include the name and address of the employer in the United States and the other country, the full name, place and date of birth of the worker, nationality, U.S. and foreign Social Security numbers, location and date of employment, and the start and end date of the assignment abroad. (If the employee works for a foreign subsidiary of the U.S. company, the application should also indicate whether U.S.
Social Security Insurance has been agreed upon for employees of the related company pursuant to Section 3121 (l) of the internal income code.) Self-employed workers should indicate their country of residence and the nature of their self-employment. When applying for certificates under the agreements with France and Japan, the employer (or non-employee) must also indicate whether the worker and accompanying family members are covered by health insurance. The provisions to eliminate dual coverage for workers are similar in all U.S. agreements. Each of them establishes a basic rule regarding the location of the employment of a workforce. Under this basic “territorial rule,” a worker who would otherwise be covered by both the United States and a foreign regime is subject exclusively to the coverage laws of the country in which he or she works. Although many countries have multilateral totalization agreements (especially among members of the European Union), U.S. agreements are required by law to be only bilateral. Therefore, if a worker earns 6 or more QCs and has additional working time in each of the two countries with which the United States has a totalization agreement, only the coverage periods of one country or another can be combined with the QCs to entitle these workers.