The general principle of all totalisation agreements is that a worker, if equal, must pay taxes and should only be covered by the social security system of the country in which he works. This simple rule is called the territorial rule, that is, the territory in which a person works determines his or her tax debt. All other coverage provisions for totalization agreements are exceptions to this general rule. When a person is qualified for a social security benefit in the United States on the basis of cumulative coverage in the U.S. and abroad under a totalization agreement, the amount of the U.S. benefit payable is only proportional to the periods of coverage earned in the United States. Similarly, the partner country pays a partially or proportionately paid benefit when combined coverage entitles you to a claim. It is therefore possible for a person to enjoy an overall benefit from an agreement of one of the two countries or both countries if he meets all the conditions applicable to the claim. The provisions for calculating benefits used in the United States are uniform in all totalization agreements, as required by law in provisions 42 U.S.C. Determining a proportional amount of U.S. benefits as part of a totalization agreement is a three-step process. 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.
However, do not call these numbers if you want to inquire about a right to an individual benefit. Totalization agreements protect the benefit rights of workers who divide their professional careers between the two countries by allowing each country to count, as needed, the social security rights acquired in the other country to constitute benefit rights. Coverage periods are cumulative only for individuals with a specified minimum amount of coverage, but who are not sufficient to meet the normal requirements of the entitlement to the benefit. In the United States, for example, workers, 5 When a person has earned at least 6 QCs but less than 40, the SSAs provide, in determining the entitlement to the benefit, that the SSAs would account for their hours of work in a country that is a partner in the overall agreement. Those who want more information about the U.S. program on the totalization of social security – including the details of some existing agreements – should write: like other agreements, the U.S.-Uruguay agreement eliminates dual social security.