Totalization Agreement Canada
If you work as a worker in the United States, you are normally covered by the United States, in accordance with the agreement, and you and your employer only pay Social Security taxes in the United States. When you work as a worker in Canada, you are normally covered by Canada, and you and your employer only pay social security taxes (contributions) in Canada. The agreement with Canada helps many people who would not otherwise be entitled to monthly retirement, disability or survivors` benefits under the social security plans of one or both countries. It also helps people who would otherwise have to pay social security taxes to the two countries with the same incomes. Data protection law requires us to inform you that we have the right to collect this information in accordance with section 233 of the Social Security Act. Although it is not mandatory for you to provide the information to the social security authority on the provision of the information, a certificate of coverage can only be issued if an application has been received. The information is necessary to enable Social Security to determine whether work should only be covered by the U.S. social security system, in accordance with an international agreement. Without the certificate, work can be taxed under both the U.S. and foreign social security system.
If you have any questions about international social security conventions, call the Social Security Administration`s Office of International Programs at 410-965-3322 or 410-965-7306. However, please do not call these numbers if you wish to inquire about an individual entitlement to benefits. So where do you stand? Are you caught in the middle of this unique problem? You`re not alone in looking for a way forward. Since rules and agreements are constantly in circulation, it is important to examine your options through the lens of current cross-border agreements. For more information, please contact Cardinal Point. In addition, your employer must indicate whether you remain employed by the U.S. company while working in Canada or whether you will become an employee of the U.S. company`s subsidiary in Canada. If you are an employee of a related business, your employer must indicate whether the U.S. company has an agreement with the IRS pursuant to Section 3121(l) of the Internal Revenue Code for the payment of U.S. Social Security taxes for U.S.
citizens and residents employed by the subsidiary and, if so, the effective date of the agreement.