In general, persons are not obliged to take measures with regard to aggregation benefits under an agreement until they are prepared to apply for a pension, survivor`s or invalidity. A person wishing to claim benefits under a tabling agreement may do so with any social security service in the United States or abroad. 2 An exception to this rule is the agreement concluded with Italy, which allows certain transferred workers to choose the social security scheme in which they are covered. No other U.S. tabination agreement contains a similar rule. The effective implementation of these agreements depends on concrete operational mechanisms, in particular as regards the exchange of data between the participating countries. In order to respond to a growing number of international social security agreements and an increasing number of insured migrant workers, it is necessary to improve the efficiency and scalability of implementation. The next ISSA database will provide important information on the existence and implementation of international social security agreements. As the largest recipient country, Canada has signed bilateral agreements with more than 50 countries. In addition, the aggregation of third countries for migrant workers is made possible by the Member States of 9 of the 13 States and territories that have signed and ratified the CARICOM Convention [see Multilateral Agreement]. These include Antigua and Barbuda, Barbados, Dominica, Grenada, Jamaica, Saint Lucia, Saint Vincent and the Grenadines, and Trinidad and Tobago.
In the absence of average social security coordination, people who work outside their country of origin can simultaneously enter the schemes of two countries for the same work. In this case, both countries generally require the employer and the worker or self-employed person to pay taxes on social security. To prove to the tax authorities of a host country that a worker is exempt from paying that country`s social security taxes, he or she must keep a certificate of coverage (or his employer) and present it if necessary. The certificate is a document issued by the country whose laws continue to apply to that person in accordance with the rules of the agreement. The agreements define the bodies responsible for issuing such certificates in each country. Provisions to remove double coverage for workers are similar in all U.S. agreements. Each sets a basic rule that refers to a worker`s place of employment. Under this fundamental “rule of territoriality,” an employee who would otherwise be covered by both the U.S. system and a foreign system is subject exclusively to the coverage laws of the country in which he or she works. Aggregation partner countries also calculate a proportional benefit when a worker in the United States Coverage must be added to his or her national coverage to justify entitlement to partner country benefits, but theoretical calculation methods vary considerably.
However, the partner countries use a fairly uniform proportional calculation, slightly different from the AMERICAN formula: however, according to the tax legislation of many countries, the payment of a worker`s employer`s share in a social security contribution is considered taxable compensation of the worker, which increases the worker`s income tax debt. Fiscal equalization generally provides that the employer also pays this additional income tax, which, in turn, serves to further increase the worker`s taxable income and tax debt. . . .