Us Poland Totalization Agreementwxadmin
Please note that the Federal Benefits Unit does not collect tax on ASS. For more information on the tax side of the agreement, visit your IRS representative or the SSA International Programs website. Prior to the agreement, workers, employers and the self-employed may, in certain circumstances, be required to pay social security contributions in the United States and Poland for the same work. What complicates matters is that the task of a foreign administrator is to multiply the combinations of countries that do not have agreements. The absence of an agreement can place a significant financial burden on multinational employers, for example when a company sends a foreign trip to the United States in Brazil. Other drawbacks, if there is no agreement, are dual contributions and ineligible benefits – all factors to be taken into account in the development of an international allocation policy. For example, if you have earned at least six Social Security credits in the United States but are not eligible, we can count your credits in a contracting country to make up the difference. If you meet the minimum licensing requirements on the basis of combined credits from both countries, you have a partial benefit in the United States, which is proportional to the number of credits you have purchased in the United States. The other county can also use your U.S. funds to help you meet the conditions for a foreign pension. The following table outlines the different types of social security benefits payable under the U.S. and Poland system and briefly outlines the eligibility requirements normally applicable to each type of benefit.
If you do not meet the normal conditions for these benefits, the agreement can help you qualify (see “How Benefits Can Be Paid”). Bilateral social security agreements provide for the coordination of social security systems in Poland and the other contracting state. These agreements improve the situation of beneficiaries in the acquisition of social security benefits, as they are subject to the obligation of insurance coverage for all persons within the personal scope of the agreement. Bilateral social security agreements have the effect that the acquisition of the work of Polish citizens in a country linked to Poland by such an agreement always leads positively to the acquisition of the right to social benefits. 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. In addition, your employer must indicate whether you remain an employee of the U.S. company during your activity in Poland or if you will become employees of the U.S. company`s subsidiary in Poland.
If you become a related company, your employer must indicate whether the U.S. company has entered into an agreement with the IRS, pursuant to Section 3121 (l) of the Internal Income Code, to pay U.S. Social Security taxes for U.S. citizens and residents employed by the subsidiary and, if so, the entry into force of Agreement 3121 (l). If you have any questions about international social security agreements, please contact the Office of International Social Security Programs at 410-965-3322 or 410-965-7306.