Article 7.1 provides that the competent institution of Brazil, in the case of persons who have periods of social security in Brazil and the United States, but who do not have sufficient Brazilian protection to benefit from Brazilian benefits, will add coverage quarters in the United States at the time of Brazilian coverage, in order to determine whether a person meets the minimum coverage requirements of the OASDI benefits provided by Brazilian law. Companies with new or existing expatriates who may be affected by the SSTA will need to file coverage certificates as soon as the U.S. and Brazilian social security authorities begin to accept applications. The coverage period for the five-year “self-employed” exception begins on October 1, 2018 for authorized workers sent to work before the effective date. The provisions of the Uruguay agreement are similar to those of the agreement with Brazil. The Uruguay Agreement exempts citizens of a contracting country seconded by a company from that country contracting a commitment of five years or less in the other contracting country to pay social security contributions to the other country. Individuals who have worked in both countries but do not meet the minimum benefit requirements for both plans may be eligible to receive a benefit on the basis of combined coverage credits from both countries12 For Brazilian and U.S. nationals who have worked at both sites, this agreement will help meet the qualification requirements for certain pensions. – disability and survival benefits (total benefits). In addition, the agreement deals with a possible double taxation of social security for cross-border employment scenarios. Totalization agreements are international social security agreements. They ensure that periods of social security under a country`s social security system are taken into account when determining the right to social security benefits (for example). B pensions) in the other country.
Often, these agreements allow international workers temporarily assigned to the other country to maintain social security contributions in their home countries for a limited period of time in order to avoid double taxation. This is the case with the agreement between the United States and Brazil on the totalization of social security. SSTA covers old age, disability and survival benefits from social security schemes in both countries. It should be noted that the agreement does not cover participation in the National Severance Compensation Fund (commonly known as FGTS). The FGTS is financed by compulsory employer contributions equal to 8% of an employee`s salary. Fragomen`s Social Security team assists you in the work of navigating international social security law and advises you on the benefits and impact on your company`s social security program. Because Fragomen is dedicated exclusively to immigration services and assistance, we can also help manage social security issues that are closely related to your global immigration needs, optimizing costs, increasing efficiency and speeding up. Prior to SSTA, it was possible that a national of a country working in another country would be subject to social security at both sites.