The single-family home rule in U.S. agreements generally applies to workers whose interventions in the host country are expected to last 5 years or less. The 5-year limit for leave for exempt workers is much longer than the limit normally set by agreements in other countries. This table is just a general guide. More detailed information about U.S. benefits can be found here on our website or at any U.S. Social Security office. More detailed information about the Spanish system can be found by contacting the Spanish address at “More Information” or by visiting the website of the Spanish Social Security System at www.seg-social.es. Note As shown in the table, an American worker employed in Spain can only be covered by U.S. Social Security if he or she works for an American employer. A U.S. employer includes a company organized under U.S. or state law, a partnership if at least two-thirds of the partners are based in the United States, a person residing in the United States, or a fiduciary company if all directors are based in the United States.
It is also a foreign subsidiary of a U.S. employer when the U.S. employer entered into an agreement with the Internal Revenue Service, pursuant to Section 3121 (l) of the Internal Revenue Code, to pay Social Security taxes for U.S. citizens and residents employed by the subsidiary. The agreement with Italy is a departure from other US agreements because it does not regulate the people cashed in. As in other agreements, the basic criterion of coverage is the territorial rule. However, the coverage of foreign workers is mainly based on the nationality of the worker. If an employed or self-employed U.S.
citizen in Italy would be covered by U.S. Social Security without the agreement, he will remain covered by the U.S. program and exempt from Italian coverage and contributions. The agreement includes Social Security taxes (including Medicare`s U.S. share) as well as pension, disability and survival insurance. It does not cover benefits under the U.S. Medicare program or the ISS (security supplement). The agreements allow sSA to add U.S. and foreign coverage credits only if the worker has at least six-quarters of U.S. coverage. Similarly, a person may need a minimum amount of coverage under the foreign system to have U.S. coverage accounted for in order to meet the conditions for granting foreign benefits.
These aspects are not sufficiently taken into account by organizations that often limit their analysis to the mere representation of a TA300. Given that this communication is necessary in many cases, it must be taken into account that any bilateral agreement is different and may define different coverage and contribution criteria and that the very existence of a bilateral agreement may result in a greater loss to the profession posted abroad in terms of future tax benefits. As a general rule, individuals should only take action on totalization benefits under an agreement when they are willing to apply for a pension, survival or disability. A person wishing to introduce a entitlement to benefits as part of a totalization agreement can do so with any social security agency in the United States or abroad. 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.