If a worker is not entitled to benefits in the country of origin or host country due to failure to meet deadlines, an existing aggregation agreement between the two countries can provide a solution. The agreement allows the employee to add up the time spent between the two sites and receive social security benefits from one of the countries, provided that a minimum amount is reached in one of the two countries or in both countries. For example, in the United States, if the combined credits in both countries allow the worker to meet the eligibility requirements, a partial allowance may be paid on the basis of the share of the total career of the person completed in the paying country. If you have any questions about international social security conventions, call the Social Security Administration`s Office of International Programs at 410-965-3322 or 410-965-7306. However, please do not call these numbers if you wish to inquire about an individual entitlement to benefits. The European Community`s social security provisions do not replace the various national social security systems with a single European system. This would be impossible because of the large differences in living standards and social security systems between Member States. However, according to the European Commission, the agreement provides for taxes on social security (including the U.S. Medicare portion) and social security benefits for old-age, disability, and survivors` insurance. It does not cover U.S.
Medicare or Security Supplement (SSI) benefits. Family allowances are also included for Italy. A general misunderstanding about the U.S. agreements is that they allow doubly covered workers or their employers to choose the system to which they will contribute. This is not the case. In addition, the agreements do not alter the basic rules for covering the social security legislation of the participating countries, such as. B those that define covered income or covered work. They exempt workers from coverage under the scheme of either country only if, otherwise, their work was covered by both schemes. The table below shows the different types of social security benefits to be paid under the U.S.
and Italian social security plans and briefly describes the eligibility requirements normally applicable to each type of benefit. If you do not meet the normal requirements for these benefits, the agreement can help you qualify (see section “How to pay benefits”). Under certain conditions, a worker may be exempted from coverage in a contracting country, even if he or she has not been transferred there directly from the United States. If, for example, a U.S. The company sends an employee from its New York office to work for 4 years in its Hong Kong office, then transfers the employee to its London office for an additional 4 years, and the employee may be exempt from UK social security coverage under the US-UK. It is an agreement. The exemption rule applies in such cases, provided that the worker was originally posted from the United States and remained under U.S. social security coverage for the entire period prior to the posting to the contract country. In situations where there is no aggregation agreement between the two countries, additional costs may be borne by the employer. These additional costs are as follows: the goal of all U.S.
totalization agreements is to eliminate dual social security and tax coverage, while maintaining coverage for as many workers as possible under the regime 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. Prior to the agreement, workers, employers and the self-employed could, in certain circumstances, be required to pay social security taxes, both in the United States and italy, for the same work. Although social security agreements vary in terms of coverage, their intent is similar depending on the terms agreed upon by the two signatories of the contract. . . .