Common Contracts
1 similar Totalization Agreement contracts
Social Security Totalization AgreementsTotalization Agreement • September 18th, 2018
When entering into a totalization agreement, the United States and a partner country agree to coordinate social security coverage and benefit payment provisions for individuals who have worked in both of the coun- tries over the course of their working lives. Totaliza- tion agreements have three main purposes. First, they eliminate double social security taxation, which occurs if a worker and his or her employer are required to pay social security taxes to two countries on the same earn- ings. Second, they help fill gaps in the coverage records of people who have divided their careers between two countries by combining, or totalizing, the periods of coverage earned in each country. Finally, totalization agreements permit unrestricted payment of benefits
