Social Security Agreement Us and Canada

Yes, as long as you have more than 30 years of work here in the United States and earn above the substantial income limit, you shouldn`t have a WEP reduction in your Social Security benefit. It doesn`t matter how many foreign pensions you might have. No, as long as you have had a substantial income here in the United States for more than 30 years, your Social Security benefit is not subject to WEP. It doesn`t matter when you turn on your CPP or a Canadian private pension plan. The annual chart of substantial earnings is here: The longer you`ve worked in the U.S. and contributed to Social Security, the less WEP will have a negative impact on your performance. If you`ve been working in the U.S. for more than 30 years, you won`t have a reduction in your Social Security benefit in the U.S. If you have less than 20 years of work experience in the United States, your Social Security can be reduced by up to 60%.

This may seem extreme, but there is a limit to reducing your benefit. Hello André, Yes, if your wife`s performance is based on her own performance and she has a QPP, she will have a WEP discount. The WEP reduction is based on their U.S. years and the size of the QPP. If she only receives a spousal benefit, she would not have a separate WEP reduction if your social security became WEP. Applications must include the employer`s name and address in the U.S. and other countries, the employee`s full name, place of birth and date of birth, citizenship, U.S. and foreign social security numbers, place and date of hire, and start and end dates of overseas deployment. (If the employee works for a foreign subsidiary of the U.S. company, the application must also state whether U.S. Social Security coverage has been agreed for the affiliate`s employees under Section 3121(l) of the Internal Revenue Code.) Self-employed persons must indicate their country of residence and the nature of their self-employment.

When applying for certificates in accordance with the agreements with France and Japan, the employer (or self-employed person) must also indicate whether the employee and the accompanying family members have health insurance. Hi Margaret, Yes, it looks like you might be receiving both Social Security and CPP and not have a reduction in your Social Security benefit. As a general rule, you must have worked in the United States for 30 years to receive a Social Security benefit without WEP. I don`t know your situation well enough to advise you when to start collecting your CPP, but you certainly want to start collecting at some point. The CPP is the Canadian version of U.S. Social Security. As with Social Security, you can start earning early at age 60, but you`ll receive a higher benefit if you`re delayed. The CPP is also based on the income and contributions that employees and employers make to the system.

The more you earn and the longer you work, the greater the advantage. However, the CPP tends to be lower than Social Security. Although the U.S.-Canada agreement and the U.S.-Quebec agreement allow the Social Security Administration to count your CPP or QPP credits to help you qualify for retirement, disability, or survivor benefits in the U.S., the agreement does not cover Medicare benefits. Therefore, we cannot count your credits in Canada or Quebec to be eligible for free health insurance hospital insurance. Your Social Security benefit can only be reduced by the lower 50% of your CPP (plus any other Canadian pension you have earned) or by an annual limit set by the government each year. In 2019, the maximum your Social Security can be reduced by WEP is $463 CAD per month. This applies to a person with less than 20 years of work experience in the United States. So if your only Canadian pension is the CPP and the CPP is $500, the higher your Social Security can be reduced is $250 per month. OAS is not included in the calculation of the MAP. Unfortunately, the deal is not good for everyone.

The totalization agreement is ideal for those who have worked in the United States for less than ten years. However, it`s not that friendly if you`re actually eligible for your own Social Security benefit. The agreement includes a Deadweight Elimination Commission (WEP), which reduces your Social Security benefit in the United States if you worked in a job where you didn`t contribute to Social Security. This includes working in Canada where you obtained a CPP and did not contribute to Social Security. Under the agreement, if you work as an employee in the United States, you are generally covered by the United States and you and your employer only pay Social Security taxes in the United States. If you work as an employee in Canada, you are usually covered by Canada and you and your employer pay social security taxes (contributions) only in Canada. Yes, your wife`s social security should not be reduced by more than 1/2 of her QPP. Unlike Social Security and the CPP, the OAS is not based on wages earned or the amount you paid into the system.

The OAS is available to Canadian citizens who have lived in Canada for some time and earn less than a certain amount of money. In 2019, the maximum OAS benefit is $607 and your individual income must be less than $125,937. However, to receive the maximum OAS benefit, you must have lived in Canada for 40 years after the age of 18. You can start collecting your OAS at age 65, but you can defer until age 70 and get a higher payment. As you can see above, a U.S. worker may have worked in the U.S. for 9 years, their job has moved to Canada, and is not receiving Social Security benefits. However, the 1984 agreement allows for the application of loans purchased in Canada for U.S. Social Security. Below is the breakdown of eligibility if you worked in the United States and Canada.

You can also write to this address if you wish to propose the negotiation of new agreements with certain countries. In developing its bargaining plans, the SSA attaches considerable importance to the interests of employees and employers who will be affected by potential agreements. The provisions to eliminate double coverage for workers are similar in all U.S. agreements. Everyone establishes a basic rule that relates to an employee`s workplace. Under this basic “rule of territoriality,” an employee who would otherwise fall under both the U.S. and foreign systems is subject exclusively to the coverage laws of the country in which he or she works. International social security agreements, often referred to as “totalization agreements,” have two main purposes. First, they eliminate social security double taxation, the situation that occurs when an employee of one country works in another country and is required to pay social security taxes to both countries on the same income. .