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 agreement with Italy is a departure from other US agreements because it does not regulate the people cashed in. As in other agreements, the basic criterion of coverage is the territorial rule. However, the coverage of foreign workers is mainly based on the nationality of the worker. If an employed or self-employed U.S.
citizen in Italy would be covered by U.S. Social Security without the agreement, he will remain covered by the U.S. program and exempt from Italian coverage and contributions. The agreements allow sSA to add U.S. and foreign coverage credits only if the worker has at least six-quarters of U.S. coverage. Similarly, a person may need a minimum amount of coverage under the foreign system to have U.S. coverage accounted for in order to meet the conditions for granting foreign benefits. Suppose a worker born on January 2, 1951 applied for an old-age pension in January 2017. The worker worked in the United States for 8 years – from 1980 to 1987 – and earned the maximum amount of taxes subject to Social Security each year. As a result, the worker has accumulated 32 QCs, which is not enough to qualify for a superannuation only with U.S. coverage.
However, this worker also covered in Switzerland. Since the United States and Switzerland have a totalization agreement and the worker has at least 6 QCs, it can be attributed to the worker`s Swiss coverage that he or she can benefit from a fully beneficiary benefit. The U.S. worker`s benefit is calculated in the steps described below. Workers who have shared their careers between the United States and a foreign country may not be entitled to pensions, survivor benefits or disability insurance (pensions) from one or both countries because they have not worked long or recently enough to meet minimum conditions. Under an agreement, these workers may benefit from partially U.S. or foreign benefits on the basis of combined or “totalized” coverage credits from both countries. These exceptions, based on the country of nationality or nationality of the worker, are provisions of the Social Security Act. In most cases, totalization agreements expand the ability of benefits to be nsogability based on their residence. If you have any questions about international social security agreements, please contact the Office of International Social Security Programs at 410-965-3322 or 410-965-7306. However, do not call these numbers if you want to inquire about a right to an individual benefit.
Double tax debt may also affect U.S. citizens and residents working for foreign subsidiaries of U.S. companies.