U.S. Czech Totalization Agreement

A notice posted by the Social Security Administration:

The United States and the Czech Republic signed an agreement on September 7, 2007, to exempt U.S. and Czech employers and workers from double payroll taxation. Before the agreement can enter into force, both the U.S. Congress and the Czech parliament must ratify it. (In the U.S., the president must transmit the agreement to Congress for a required 60-session-day review period.)

The agreement will exempt U.S. citizens sent by U.S.-owned companies to work in the Czech Republic for 5 years or less from paying social security taxes to both countries. Czech citizens sent to work temporarily in the United States will receive similar tax treatment. As a result, the employers of these workers will pay social security taxes only to their own country. Individuals who have worked in both countries, but who currently do not meet the minimum benefit eligibility requirements for either system, may qualify for a benefit based on combined coverage credits from both countries. Combined coverage periods may be used to calculate retirement, disability, and survivor benefits. If both countries approve the agreement, the Czech Republic will be the 22nd country with a totalization agreement with the United States.

Sources: "U.S.-Czech Republic Social Security Agreement," U.S. Social Security Administration, September 2007.

This does not seem to be getting as much attention as the possibility of a totalization agreement with Mexico.