Australia`s agreements with Austria, Belgium, Chile, Croatia, Czech Republic, Estonia, Finland, Germany, Greece, Hungary, India, Ireland, Japan, Korea, Latvia, Republic of Northern Macedonia, Netherlands, Norway, Poland, Portugal, Slovak Republic, Switzerland and the United States also include provisions regulating supplementary pension contributions and social security contributions from partner countries for non-resident workers , to avoid double coverage. For more information on the superannuation guarantee, please visit the Australian Taxation Office website. In general, the agreements allow Australian residents to maximize their income by helping them to demand payments from other countries where they have spent part of their working lives. Workers who have shared their careers between the United States and a foreign country may not be entitled to pensions, survivor benefits or disability insurance (pensions) from one or both countries because they have not worked long or recently enough to meet minimum conditions. Under an agreement, these workers may benefit from partially U.S. or foreign benefits on the basis of combined or «totalized» coverage credits from both countries. Double social security is a widespread problem for U.S. multinationals and their employees, since the U.S. Social Security program covers foreign workers – who arrive in the U.S. and go abroad – to a greater extent than the programs of most other countries. U.S. Social Security covers U.S.
nationals and non-resident aliens who are employed by U.S. employers abroad, regardless of the duration of an employee`s intervention abroad, even if the employee was recruited abroad. This extraterritorial coverage in the United States often results in double tax debt for employers and workers, since most countries generally receive social security contributions for all those who work in their territory. 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. International social security agreements, often referred to as «totalization agreements,» have two main objectives.
First, they remove the double taxation of social security, the situation that occurs when a worker from one country works in another country and is required to pay social security taxes to the two countries with the same incomes.