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. The main condition for collecting social benefits in retirement is the contribution to a plan. In some cases, the recovery of pension benefits requires that the worker has contributed to the social security program and worked in that country for a period of time. This last point concerns multinational organisations which, because of the unique consequences of an international commitment, claim a financial profit or loss of the expatriate – that is, minimise any financial gain or loss of the expatriate – and therefore have an additional financial burden when they fulfil the commitment of the host country as part of its foreign policy. In addition, the tax legislation of the host country may result in such a payment from the employer as taxable compensation to the assignee – which further increases the overall burden of the company. The United States has agreements with several nations, the so-called totalization conventions, in order to avoid double taxation of income in relation to social contributions. These agreements must be taken into account in determining whether a foreigner is subject to the U.S. Social Security Tax/Medicare or whether a U.S. citizen or resident alien is subject to the social security taxes of a foreign country. Social security actuaries believe that a totalization agreement with Mexico would have a negligible long-term effect on trust funds. Social security rates and caps (or ceilings) vary from country to country. The graph includes contribution amounts for employees and employers, percentage amounts of gross salary and marginal social security rate for a number of gross wages.
(Note: the limit rate is the rate applicable to the next dollar, which is earned in addition to the reported gross income.) An agreement with Mexico would save U.S. workers and their employers about $140 million in social security and health insurance taxes in Mexico during the first five years of the agreement. In order for a worker to be posted to another Member State, an A1 certificate (formerly E-101 certified) would have to be applied for in the Member State where social security is renewed.