Identification Number:
RS 02001 TN 29
Intended Audience:See Transmittal Sheet
Originating Office:ORDP ODEPPIN
Title:International Agreements
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part RS – Retirement and Survivors Insurance
Chapter 020 – Coverage Under International Agreements
Subchapter 01 – International Agreements
Transmittal No. 29, 07/03/2019

Audience

PSC: CA, CS, ICDS, IES, ISRA, RECONR, SCPS, TSA, TST;
OCO-OEIO: CR, CTE, FCR, RECONR;
OCO-ODO: CR, CST, CTE, CTE TE;
FO/TSC: CS, CS TII, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

ODEPPIN

Effective Date

Upon Receipt

Background

This is a Quick Action Transmittal. These revisions do not change or introduce new policy or procedure.

Summary of Changes

RS 02001.430 Special Exceptions to the Coverage Rules - U.S. Swedish Agreement

We have updated the section to show the component from which to request special exceptions. We updated the sections to include plain language, editorial, and minor format changes.

RS 02001.435 Obtaining a Certificate of Coverage - U.S. Swedish Agreement

We have updated the section to show the component from which to request certificates of coverage. We updated the sections to include plain language, editorial, and minor format changes.

RS 02001.430 Special Exceptions to the Coverage Rules - U.S.-Swedish Agreement

A. Intent of special exception provision

The rules of the agreement for eliminating dual coverage described in RS 02001.405 through RS 02001.430 cover the majority of situations where the United States and Sweden would both cover and tax a worker in the absence of an agreement. However, sometimes the application of the normal agreement rules would yield anomalous or inequitable results. For this reason, the agreement includes a provision that permits the authorities in both countries to grant exceptions to the normal coverage rules of the agreement if both sides agree.

The intent of the exception provision is not to provide workers or employers with the freedom to elect coverage in conflict with normal agreement rules. The purpose of the special exception provision is to allow a worker to continue coverage in the country where he or she normally works and has coverage, in order to ensure that he or she will meet eligibility requirements for retirement or disability benefits.

B. Consensus requirement for special exceptions

An employee, employer or self-employed person may request a special exception to the normal coverage rules of the agreement. Both countries must agree to the special exception and agree on the country of coverage. If either country does not agree with a proposed exception, the applicable coverage rule of the agreement determines the worker's coverage.

C. How to request special exceptions

A worker or employer who wishes to apply for a special exception writes to the designated agency in the country where the worker wishes to remain covered. The letter should:

  • give all the information necessary to issue a certificate of coverage under the U.S.-Swedish agreement; and

  • explain why a special exception should be granted.

The rules for eliminating dual social security coverage described in RS 02001.420 are designed to cover the great majority of situations where a worker would otherwise be subject to coverage by both Sweden and the United States. However, these rules may not apply in all situations, or may have unintended results in certain cases. For this reason, a special exception provision has been included in the agreement.

Individuals wishing to request an exception granting U.S. coverage should write to the following address:

Social Security Administration Office of Data Exchange, Policy Publications, and International Negotiations (ODEPPIN)
Attn: International Agreements
6401 Security Blvd.
4700 Annex Building
Baltimore, MD 21235

Individuals wishing to request an exception granting Swedish coverage should write to the Swedish Regional Social Insurance Office for the region in which they reside.

Upon receipt of a request for a special exception, the agency that receives the request will consider it in collaboration with the other country's agency. If both agencies approve the request for a special exception, the agency that receives the request will issue a certificate of coverage. The certificate of coverage will serve as proof of exemption from coverage and taxes in the other country.

RS 02001.435 Obtaining a Certificate of Coverage - U.S.-Swedish Agreement

A. Purpose of certificate of coverage

The U.S.-Swedish agreement requires each country to issue certificate of coverage forms for workers who, without the agreement, would have to pay social security taxes to both countries on the same earnings. The certificate serves as proof that the worker named on the certificate is:

  • subject to the social security taxation and coverage laws of the country issuing the certificate; and

  • exempt from social security coverage and contributions on the same earnings in the other country.

B. Issuing agency

1. United States Coverage

The Social Security Administration (SSA) issues the certificates of U.S. coverage. Our contact information is below:

Social Security Administration
Office of Earnings and International Operations (OEIO)
P.O. Box 17741
Baltimore, Maryland 21235-7741

2. Swedish Coverage

The Social Insurance Office (Försäkringskassan) issues the certificates of Swedish coverage. Your employer in Sweden must request a certificate of coverage from the Swedish Regional Social Insurance Office for the region in which the Swedish employer is located.

C. Requesting a certificate of coverage

1. U.S. certificate of coverage

Advise inquirers that to obtain a certificate of coverage from the United States, the employer or self-employed person should contact SSA at:

Social Security Administration
Office of Earnings and International Operations (OEIO)
P.O. Box 17741
Baltimore, Maryland 21235-7741
SSA Fax: (410) 966-1861
Request online: opts.ssa.gov

NOTE: This fax number is only for requesting U.S. certificates of coverage or letters stating that workers named in the letters are exempt from foreign social security coverage and taxation.

2. Swedish certificate of coverage

Advise inquirers that to obtain a certificate of coverage from Sweden, they should write to the Swedish Regional Social Insurance Office for the region in which the Swedish employer is located.

D. Requesting a certificate of coverage

Advise inquirers that when writing to obtain a certificate of coverage, they should provide the following information:

  • full name;

  • Social Security number (U.S. number for U.S. certificate or Swedish number for Swedish certificate);

  • country of citizenship;

  • date and place of birth;

  • country of permanent residence;

  • name and address of employer in both countries (if self-employed, address of trade or business in both countries);

  • date and place of hire by sending company, if employed; and

  • beginning date and ending date (if known) of employment or self-employment in the other country.

  • Name and relationship of any family members accompanying the worker

NOTE: If the worker will be an employee of a Swedish affiliate of an American employer, the request must indicate whether the American employer has entered into an agreement with the Internal Revenue Service under Section 3121(l) of the Internal Revenue Code and, if so, the effective date of such an agreement.

E. Processing requests for certificates of coverage

OEIO or the Swedish authority takes the following steps to issue a certificate of coverage:

1. The employee, employer (in the case of employment), or the worker (in the case of self-employment) writes to the appropriate authority requesting a certificate.

Note: For requests for U.S. certificates of coverage, the employer’s representative (attorney, accounting firm, employer services firm, etc.) or worker's representative may request the certificate on the employer's or worker's behalf. If an employee requests the certificate, OEIO will need to contact the employer to confirm the accuracy of the information provided.

2. The United States or Sweden issues the certificate, if appropriate.

3. The issuing agency sends the original and one copy to the requester.

4. The employer, employee, or worker presents the certificate to the tax authorities in the other country upon request.

5. If the worker is a self-employed U.S. citizen or national who is subject only to Swedish laws under the agreement, the self-employed worker must attach a photocopy of the Swedish certificate of coverage to the Schedule SE filed with the U.S. income tax return each year.

 

 


RS 02001 TN 29 - International Agreements - 7/03/2019