Skip to content Social Security Online |
International Programs |
www.socialsecurity.gov |
International Programs Home |
Totalization Agreement with the Czech RepublicSSA Publication No. 05-10177, February 2009, ICN 480190 [OMB Approval Number: 0960-0554 Expires 10/31/2013] |
Introduction |
An agreement effective January 1, 2009, between the United States and the Czech Republic improves Social Security protection for people who work or have worked in both countries. It helps many people who, without the agreement, would not be eligible for monthly retirement, disability or survivors benefits under the Social Security system of one or both countries. It also helps people who would otherwise have to pay Social Security taxes to both countries on the same earnings. The agreement covers Social Security taxes (including the U.S. Medicare portion) and Social Security retirement, disability and survivors insurance benefits. It does not cover benefits under the U.S. Medicare program or the Supplemental Security Income program. This document covers highlights of the agreement and explains how it may help you while you work and when you apply for benefits.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The agreement may help you, your family and your employer
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coverage and Social Security taxes |
Before the agreement, employees, employers and self-employed people could, under certain circumstances, be required to pay Social Security taxes to both the United States and the Czech Republic for the same work. Under the agreement, if you work as an employee in the United States, you normally will be covered by the United States, and you and your employer will pay Social Security taxes only to the United States. If you work as an employee in the Czech Republic, you normally will be covered by the Czech Republic, and you and your employer pay Social Security taxes only to the Czech Republic. On the other hand, if your employer sends you from one country to work for that employer or an affiliate in the other country for five years or less, you will continue to be covered by your home country and you will be exempt from coverage in the other country. For example, if a U.S. company sends an employee to work for that employer or an affiliate in the Czech Republic for no more than five years, the employer and the employee will continue to pay only U.S. Social Security taxes and will not have to pay in the Czech Republic. Special rules apply to self-employed persons who, without the agreement, would have to pay Social Security taxes to both countries (see the table). NOTE: In addition to the Czech Social Security taxes that cover retirement, disability and survivors benefits, the agreement also includes the Czech taxes that cover unemployment insurance taxes. As a result, workers exempted from Czech Social Security coverage by the agreement pay no Social Security taxes for these programs and generally cannot receive benefits from them. If the agreement exempts you from Czech coverage, you and your employer may wish to arrange for alternative benefit protection.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of agreement rulesThe following table shows whether your work is covered under the U.S. or Czech Social Security system. If you are covered under U.S. Social Security, you and your employer must pay U.S. Social Security taxes. If you are covered under the Czech system, you and your employer must pay Czech Social Security taxes. If you are self-employed and temporarily transfer your activity from your home country to the other country, you will remain covered by your home country. "Certificate of coverage" section explains how to get a form from the country where you are covered that will prove you are exempt in the other country.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE: As the table indicates, a U.S. worker employed in the Czech Republic can be covered by U.S. Social Security only if he or she works for a U.S. employer. A U.S. employer includes a corporation organized under the laws of the United States or any state, a partnership if at least two thirds of the partners are U.S. residents, a person who is a resident of the U.S. or a trust if all the trustees are U.S. residents. The term also includes a foreign affiliate of a U.S. employer if the U.S. employer has entered into an agreement with the Internal Revenue Service under section 3121(l) of the Internal Revenue Code to pay Social Security taxes for U.S. citizens and residents employed by the affiliate. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificate of coverage |
A certificate of coverage issued by one country serves as proof of exemption from Social Security taxes on the same earnings in the other country.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates for employeesTo establish an exemption from compulsory coverage and taxes under the Czech system, your employer must request a certificate of coverage (form USA/CZ 1) from the U.S. at this address: Social Security Administration If preferred, the request may be sent by FAX to (410) 966-1861. Please note this FAX number should only be used to request certificates of coverage. No special form is required to request a certificate but the request must be in writing and provide the following information:
In addition, your employer must indicate if you remain an employee of the U.S. company while working in the Czech Republic or if you become an employee of the U.S. company’s affiliate in the Czech Republic. If you become an employee of an affiliate, your employer must indicate if the U.S. company has an agreement with the Internal Revenue Service under section 3121(l) of the Internal Revenue Code to pay U.S. Social Security taxes for U.S. citizens and residents employed by the affiliate and, if yes, the effective date of the agreement. Your employer can also request a certificate of U.S. coverage for you over the Internet using a special online request form available at www.socialsecurity.gov/coc. Only an employer can use the online form to request a certificate of coverage. A self-employed person must submit a request by mail or fax. To establish your exemption from coverage under the U.S. Social Security system, your employer in the Czech Republic must request a certificate of coverage (form CZ/USA 1) from the Czech Republic at this address:
The same information required for a certificate of coverage from the United States is needed to get a certificate from the Czech Republic except that you must show your Czech Birth Certificate number rather than your U.S. Social Security number.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates for self-employed peopleIf you are self-employed and would normally have to pay Social Security taxes to both the U.S. and Czech systems, you can establish your exemption from one of the taxes.
Be sure to provide the following information in your letter:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective date of coverage exemptionThe certificate of coverage you receive from one country will show the effective date of your exemption from paying Social Security taxes in the other country. Generally, this will be the date you began working in the other country, but no earlier than the effective date of the agreement. Certificates of coverage issued by the Czech Republic should be retained by the employer in the United States in case of an audit by the Internal Revenue Service (IRS). No copies should be sent to IRS unless specifically requested by IRS. However, a self-employed person must attach a photocopy of the certificate to his or her tax return each year as proof of the U.S. exemption. Copies of certificates of coverage issued by the United States will be provided for both the employee and the employer. It will be their responsibility to present the certificate to the Czech authorities when requested to do so. To avoid any difficulties, your employer (or you, if you are self-employed) should request a certificate as early as possible, preferably before your work in the other country begins. If you or your employer request a certificate of coverage, you should read the Privacy Act and Paperwork Reduction Act Statements at the end of this booklet.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Monthly benefits |
The following table shows the various types of Social Security benefits payable under the U.S. and Czech Social Security systems and briefly describes the eligibility requirements that normally apply for each type of benefit. If you do not meet the normal requirements for these benefits, the agreement may help you to qualify (see "How benefits can be paid" section). This table is only a general guide. You can get more specific information
about U.S. benefits at any U.S. Social Security
office or by using the contact information on the inside cover or this publication. You can get more detailed information about the Czech system by writing to the Czech address in "For more information" section or by visiting the Ceská správa sociálního zabezpecení’s (Czech Social Security Administration) website at www.cssz.cz. Under U.S. Social Security, you may earn up to four credits each year depending on the amount of your covered earnings. The amount needed to earn a work credit goes up slightly each year. For more information, see How You Earn Credits (SSA Publication No. 05-10072). Under the Czech system, credits are measured in days. To simplify the information in the table, requirements are shown in years of credits. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Monthly benefits and eligibility requirements
* The full retirement age is 66 for people born in 1943-1954 and will gradually increase to 67 for people born in 1960 or later. **Full retirement age for people born July 1, 1939 to January 1, 1959 is age 65. The full retirement age increases gradually until it reach age 67 for people born June 30, 1960 or later.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
How benefits can be paidIf you have Social Security credits in both the United States and the Czech Republic, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country. If you do not meet the basic requirements, the agreement may help you qualify for a benefit as explained below.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
How credits get countedYou do not have to do anything to have your credits in one country counted by the other country. If we need to count your credits under the Czech system to help you qualify for a U.S. benefit, we will get a copy of your Czechanish earnings record directly from the Czech Republic when you apply for benefits. Although each country may count your credits in the other country, your credits are not actually transferred from one country to the other. They remain on your record in the country where you earned them and can also be used to qualify for benefits there.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of U.S. benefit under the agreementWhen a U.S. benefit becomes payable as a result of counting both U.S. and Czech Social Security credits, an initial benefit is determined based on your U.S. earnings as if your entire career had been completed under the U.S. system. This initial benefit is then reduced to reflect the fact that Czech credits helped to make the benefit payable. The amount of the reduction will depend on the number of U.S. credits: the more U.S. credits, the smaller the reduction; and the fewer U.S. credits, the larger the reduction. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A Czech pension may affect your U.S. benefit |
If you qualify for Social Security benefits from both the United States and the Czech Republic and you did not need the agreement to qualify for the U.S. benefit, the amount of your U.S. benefit may be reduced. This is a result of a provision in U.S. law which can affect the way your benefit is figured if you also receive a pension based on work that was not covered by U.S. Social Security. For more information, ask for Windfall Elimination Provision (Publication No. 05 10045). If you are outside the United States, you may write to us at the address shown in "For more information" section. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
What you need to know about Medicare |
Medicare is the U.S. national health insurance system for people age 65 or older or who are disabled. Medicare has four parts:
Although the agreement between the United States and the Czech Republic allows the Social Security Administration to count your Czech credits to help you qualify for U.S. retirement, disability or survivor benefits, the agreement does not cover Medicare benefits. As a result, we cannot count your credits in the Czech Republic to establish entitlement to free Medicare hospital insurance. For more information about Medicare, ask for Medicare (Publication No. 05-10043) or visit Medicare's website at www.medicare.gov. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Claims for benefits |
If you live in the United States and wish to apply for U.S. or Czech benefits:
You can apply for Czech benefits at any U.S. Social Security office by completing an application form CZ/USA 202. If you live in the Czech Republic and wish to apply for U.S. or Czech benefits, contact:
You can apply with one country and ask to have your application considered as a claim for benefits from the other country. Information from your application will then be sent to the other country. Each country will process the claim under its own laws—counting credits from the other country when appropriate—and notify you of its decision. If you have not applied for benefits before, you may need to provide certain information and documents when you apply. These include the worker’s U.S. Social Security number, the worker's Czech Birth Certificate number, proof of age for all claimants, evidence of the worker's U.S. earnings in the past 24 months and information about the worker's coverage under the Czech system. You may wish to call the Social Security office before you go there to see if any other information is needed.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of benefits Each country pays its own benefit. U.S. payments are made by the U.S. Department of Treasury each month and cover benefits for the preceding month. Czech payments are made by the Czech National Bank four times a year (in March, June, September and December) and cover benefits for the previous three months.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Absence from U.S. territory Normally, persons who are not U.S. citizens may receive U.S. Social Security benefits while outside the U.S. only if they meet certain requirements. Under the agreement, however, you may receive benefits as long as you reside in the Czech Republic regardless of your nationality. If you are not a U.S. or Czech citizen and live in another country, you may not be able to receive benefits. The restrictions on U.S. benefits are explained in the publication, Your Payments While You Are Outside The United States (Publication No. 05-10137).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appeals If you disagree with the decision made on your claim for benefits under the agreement, contact any U.S. or Czech Social Security office. The people there can tell you what you need to do to appeal the decision. The Czech Social Security authorities will review your appeal if it affects your rights under the Czech system, while U.S. Social Security authorities will review your appeal if it affects your rights under the U.S. system. Since each country's decisions are made independently of the other, a decision by one country on a particular issue may not always conform with the decision made by the other country on the same issue.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For more information |
To file a claim for U.S. or Czech benefits under the agreement, follow the instructions in "Claims for benefits" section. To find out more about U.S. Social Security benefits or for information about a claim for benefits, contact any U.S. Social Security office. If you live outside the United States, write to:
For more information about the Czech Republic's Social Security programs, contact any Social Security office in the Czech Republic. If you do not live in the Czech Republic, write to:
If you do not wish to file a claim for benefits, but would like more information about the agreement, write to:
Or visit US SSA at www.socialsecurity.gov/. Our website is a valuable resource for information about all of Social Security's programs. At our website you also can get forms to request important documents such as a Social Security Statement, a replacement Social Security or Medicare card or a letter to confirm your benefit amount. You can find our publications on line as well. For additional information visit our website: www.socialsecurity.gov/international. |
Privacy Policy | Website
Policies & Other Important Information | Site
Map
Last reviewed or modified Tuesday Dec 07, 2010 |