A new agreement with Poland will enter into force on 1 March 2009 and SSA is in talks for a new agreement with Hungary. On the other hand, the agreement applies to the portion of the U.S. Social Security Tax that funds Medicare`s hospital insurance. As a result, workers and employers exempt from U.S. Social Security tax on the basis of the agreement are exempt from the full tax, including Medicare`s share. American workers working for an employer in the Czech Republic will continue to be covered by the Czech public health insurance system. With effect on May 1, 2016, the United States and the Czech Republic have concluded a complementary social security agreement. The supplementary agreement exempts workers from paying Czech health insurance rights. In addition, the restrictions imposed by one country on the benefits of workers and their relatives and their survivors when they live in the other country will be removed. The United States, for example, did not pay dependent and survivor benefits to Czech citizens who had been outside the United States for more than 6 months, unless they had been in the United States for at least 5 years during which they were related to the worker.
This requirement no longer applies after the agreement comes into force. To obtain a partially cumulative benefit under all of our agreements, a person must have accumulated at least 6 quarters of U.S. coverage and have at least 40 quarters (10 years) of cumulative coverage between the United States and the country with which the United States has an agreement. Prior to the agreement, workers, employers and the self-employed may, in certain circumstances, be required to pay social security contributions for the same work, both in the United States and the Czech Republic. The agreement with the Czech Republic will also fill gaps in the protection of workers who have shared their careers between the United States and the Czech Republic. These workers cannot receive social security benefits from one or both countries because they have not worked long enough to meet the minimum requirements. The agreement allows each country to account for a worker`s social security credits in the other country to determine eligibility. The benefits are then paid on a pro-rata basis. The agreement does not only allow each country to consider the combined insurance periods of a worker in the United States and the Czech Republic in order to determine the worker`s entitlement to a pension or disability benefits; it also allows countries to determine the right to benefits for dependent workers and survivors on the basis of the worker`s combined insurance coverage.