These objective rules include the following rules, which may not apply to any agreement reached by the United States: any agreement (with the exception of the agreement with Italy) contains an exception to the territorial rule, which aims to minimize disruptions in the coverage of workers whose employers send employers abroad for temporary terms. Under this exception for “self-employed workers,” a person temporarily transferred to work for the same employer in another country is covered only by the country from which he or she was seconded. A U.S. citizen or resident, for example, who is temporarily transferred by a U.S. employer to work in a contract country, remains covered by the U.S. program and is exempt from host country coverage. The worker and employer only pay contributions to the U.S. program. You can also write to this address if you want to propose negotiating new agreements with certain countries. In developing its negotiating plans, the SSA attaches considerable importance to the interests of workers and employers who will be affected by potential agreements.
c. At the request of the competent authorities of both States, a meeting is convened for consideration of an endorsement. The agreements also have a positive effect on the profitability and competitive position of companies operating abroad by reducing their business costs abroad. Companies with staff stationed abroad are encouraged to use these agreements to reduce their tax burden. Paying double social security contributions is particularly expensive for companies that offer “tax compensation” to their expatriate workers. A company that sends an employee to work in another country often ensures that the assignment will not result in a reduction in the employee`s after-tax income. As a result, employers who have tax compensation programs generally agree to pay both the employer`s share and the share of the host country`s social security contributions on behalf of their transferred workers.