Spain and Portugal are covered by both a bilateral agreement and the Treaty of the Ibero-American Social Security Organization. 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. The Data Protection Act requires us to inform you that we are entitled to collect this information until Section 233 of the Social Security Act. Although it is not mandatory for you to provide the information to the Social Security Administration (SSA), a coverage certificate can only be issued if an application has been received. The information is necessary to enable the SSA to determine whether, in accordance with an international agreement, the work should only be covered by the U.S. social security system. Without the certificate, work can be taxed in both the United States and foreign social security schemes. The goal of all U.S.
totalization agreements is to eliminate dual social security and taxation, while maintaining coverage for as many workers as possible under the country where they are likely to have the most ties, both at work and after retirement. Any agreement aims to achieve this objective through a series of objective rules. International social security agreements are beneficial for both those who work today and those whose careers are over. For current workers, the agreements eliminate the double contributions they might otherwise make to social security plans in the United States and another country. For people who have worked in the United States and abroad and are now retired, disabled or deceased, agreements often result in the payment of benefits to which the worker or family members would not otherwise be entitled. (N.B. The provisions for the removal of dual coverage apply to U.S. pension insurance coverage and contributions, survival, disability and hospital insurance (Medicare) programs, and pension, survival and disability insurance plans abroad. Some agreements may also apply to insurance coverage and contributions under additional programs abroad, such as .B. Insurance for short-term illness, work-related accidents and unemployment. As a result, workers exempt from foreign benefits by one of these agreements do not pay social security contributions for these additional programs and generally do not receive benefits from them. In this case, the worker and employer may agree to further benefit protection in Serden.) 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. Workers who are exempt from U.S. or foreign social security contributions under an agreement must document their exemption by obtaining a country coverage certificate that continues to cover it. For example, an American worker temporarily posted to the UK would need a SSA-issued coverage certificate to prove his exemption from UK social security contributions. Conversely, a UK-based employee working temporarily in the Us would need a certificate from the British authorities to prove the exemption from the US Social Security Tax. These objective rules include the following rules, which may not apply to any agreement reached by the United States: individuals are generally not obliged to take action with respect to totalization benefits as part of an agreement until they are