Credits acquired in the country with a tabonization agreement can be transferred to another party (i.e.: From Great Britain to the United States or vice versa), if a duplicate does not have a sufficient number of credits in one of the countries to qualify for benefits. While they are transferred to another country`s social security system, these credits do not reduce the number of loans accumulated in another country – so you may be entitled to receive social security benefits from both schemes once you reach retirement age. Under these agreements, double coverage and double contributions (taxes) for the same work are abolished. Agreements usually ensure that you only pay social security taxes to one country. The exemption rule may apply whether the U.S. employer transfers a worker to a foreign branch or one of its foreign subsidiaries. For the U.S. In order to continue to provide coverage when the transferred employee works for a foreign subsidiary, the U.S. employer must have entered into a Section 3121(l) agreement with the U.S. Treasury regarding the foreign subsidiary.
Please note that the Federal Benefits Unit does not collect SSA tax. For more information on the tax aspect of the agreement, consult your IRS representative or the SSA International Programs page. Entitlement to benefits The goal of all U.S. totalization agreements is to eliminate dual social and tax coverage while maintaining coverage for as many workers as possible in the system of the country where they are probably most attached, both at work and after retirement. Each agreement aims to achieve this objective through a set of objective rules. Aggregation agreements, also known as bilateral agreements, eliminate dual social security (a situation that occurs when a person from one country works in another country and is required to pay social security taxes to both countries with equal income). Any aggregation agreement contains rules to allocate a worker`s coverage to the country where the worker has a greater economic connection. Agreements generally ensure that the worker pays social security taxes to only one country, provided that the worker and the employer comply with the procedural requirements laid down in the agreement in order to obtain an exemption from social security taxes of the other country. . . .