Under certain conditions, a worker may be exempt from coverage in a contracting country, even if he or she has not been transferred directly from the United States. For example, if a U.S. company sends an employee to its New York office to work for 4 years in its Hong Kong office, and then re-opens the employee for an additional 4 years in its London office, the employee may be a member of Social Security under the U.S.U.K. agreement. The rule for the self-employed applies in cases such as this, provided the worker has been seconded from the United States and is under U.S. Social Security for the entire period prior to the transfer to the contracting country. Prior to the agreement, salaried workers, employers and the self-employed may, in certain circumstances, be required to pay social security contributions for the same work, both in the United States and in France. Despite the fact that the agreements aim to allocate social security to the country where the worker is most attached, unusual situations occasionally arise, where strict enforcement of the rules of agreement would result in unusual or unjustified results. For this reason, each agreement contains a provision allowing the authorities of both countries to grant exemptions from the normal rules if both parties agree. An exception could be granted, for example, if the foreign award of a U.S.
citizen was unexpectedly extended by a few months beyond the 5-year limit under the self-employed rule. In this case, the worker could benefit from ongoing U.S. coverage for the additional period. An agreement between the United States and France, which came into force on July 1, 1988, improves the protection of social security for people who work or have worked in both countries. It helps many people who, in the absence of the agreement, would not be entitled to monthly pension, disability or survival benefits under the social security system of one or both countries. It also helps people who would otherwise have to pay social security contributions to the two countries with the same incomes. Double tax debt may also affect U.S. citizens and residents working for foreign subsidiaries of U.S. companies. This is likely to be the case when a U.S. company has followed the common practice of entering into an agreement with the Treasury, pursuant to Section 3121 (l) of the Internal Income Code, to provide social security to U.S.
citizens and residents employed by the subsidiary. In addition, U.S. citizens and residents who are independent outside the United States are often subject to double social security taxation, as they are covered by the U.S. program, even if they do not have a U.S. business. As a precautionary measure, it should be noted that the derogation is relatively rare and is invoked only in mandatory cases. There are no plans to give workers or employers the freedom to regularly choose coverage that contradicts normal contractual rules. Section 233 of the Amended Social Security Act [42 U.S.C. 433] authorizes us to collect this information.
We use the information you provide to determine whether your current work should only be covered by the U.S. social security system under an international social security agreement. The information you provide on this form is optional. However, if we do not provide all or part of the requested information, we may not make a timely and accurate decision on your application for a coverage certificate. Without the certificate, current work can continue to be covered and taxed under U.S. and foreign social security plans. We will only use the information you provide on this form for reasons other than the ones described above. However, we can use it for the management and integrity of social security programs.
We may also communicate information to another person or agency, depending on the permitted routine practices, which include, but are not limited: –the Independent National Social Security Fund for minors (