(Note: only students are covered by the agreement with Vietnam). A list of countries with which the United States currently has totalization agreements and copies of these agreements can be accessed under U.S. international social security agreements. If you have credits in both the United States and Portugal, you may be eligible for benefits from one or both countries. If you meet all the essential requirements under a country`s system, you will benefit regularly from that country. If you don`t meet the basic requirements, the agreement can help you qualify for a performance, as explained below. While these considerations represent a challenge for the employer, it is important to recognize that there are currently a number of multilateral agreements (EU Regulation 883/2004, Iberoamerican Organization Social Security Agreement, etc.) or bilateral totalisation agreements (social security contracts between two countries) to allay concerns about contributions and benefit rights – thus making the employer`s job easier. This article discusses the scope and impact of these agreements in a selection of countries, as well as the potential social security costs associated with seconding a staff member on a temporary international mission. The term “totalization” defines the second objective of the agreement. The ultimate goal is for a worker`s social benefits, whether paid in Switzerland or abroad, to be added up (or added up) so that the worker can, if eligible, withdraw these funds from a single government. If individuals are required to contribute to social security programs outside their home country, they are entitled to receive these benefits if they meet certain specifications set by the host government.
These objective rules include what may not apply to any agreement reached by the United States: any totalization agreement includes an exception for international workers. Under this exception, a person temporarily transferred to the service for the same employer in another county is covered only by the national form he or she received. Workers and employers continue to pay contributions to the national social security system. At present, Brazil has totalization agreements with the following units: the two objectives of the totalization agreements are achieved differently in different agreements and make it essential to understand the concept and specifications of each home host alliance. Many totalization agreements follow the same general pattern of contribution and time. Below is a description of the types of agreements reached by some countries. In addition, your employer must indicate whether you remain an employee of the U.S. company during your activity in Portugal or if you are employed by the U.S. company`s subsidiary in Portugal.
If you become a related company, your employer must indicate whether the U.S. company has entered into an agreement with the Internal Revenue Service pursuant to Section 3121 (l) of the Internal Revenue Code to pay U.S. Social Security taxes for U.S. citizens and residents employed by the subsidiary and, if so, the effective date of the agreement. Although the agreement between the United States and Portugal allows the Social Security Administration to count your Portuguese loans to help you qualify for pension, disability or survival benefits in the United States, the agreement does not cover Medicare benefits. Therefore, we cannot count your credits in Portugal to qualify for free Medicare insurance. Social security contributions can become, depending on the country of origin and the host country, a very expensive aspect of an allowance abroad. Due to a large number of totalisation agreements that set specific conditions, confusion over social security contributions and benefit rights has gradually subsided – with the costs of employers – but the subject still often requires the advice of experts with expertise in this area.