According to the U.S. Social Security Administration, 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 in the system of the country where they probably have the most ties, both at work and after retirement. Any agreement aims to achieve this objective through a series of objective rules. As a general rule, according to the principle of territoriality, social security contributions should be paid in the country where the work is done. This may result in risk exposure between countries that do not have a totalization agreement; High costs associated with double debt administrative burden, such as the. B respect for the host country; Etc. Currently, the United States has totalization agreements with the following countries: It is important to note that the new bilateral agreement applies only to pension legislation (s). This is not a totalisation agreement, as it does not contain any provision for taking into account the periods of insurance between Luxembourg and China for the right to benefits. It only covers unlimited liability for social security benefits granted to residents of another country (or third country) on the basis of national social security legislation. 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.
As a general rule, you pay social security contributions in the EEA country where you work instead of social security. This means that to understand the complex situation that could exist when sending a worker to an international mission – solely on the basis of the cost of social security – you consider charts 2 and 3 below, which show the social security contributions of workers and employers as a percentage of income in a number of countries of origin. The charts use US$150,000 and the corresponding monetary value in the countries concerned. A number of factors determine the nature of social security contributions that must be paid independently of employers and workers, as well as the monetary consequences. (Figure 1 shows some examples of different income level rates in the sample). Each totalization agreement has an exception for international staff. 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.