The guarantee certificate you receive from one country indicates the effective date of your exemption from paying social security contributions in the other country. In general, this is the start date of your temporary transfer to the other country or the start date of your self-employment. To avoid any difficulties, your employer (or you, if you are self-employed) should apply for a coverage certificate as soon as possible, preferably before starting your work in the other country. Prior to the agreement, the United States and Switzerland could, in certain circumstances, require workers, employers and the self-employed to pay social security contributions for both countries with the same income. Both the agreement and the administrative agreement were signed in Bern on 3 December 2012. Effective August 1, 2014. replaced a previous agreement between the United States and Switzerland, which came into force on 1 November 1980. The term also includes a foreign subsidiary of a U.S. employer when the U.S. employer has entered into an agreement with the Internal Revenue Service (IRS) pursuant to Section 3121 (l) of the Internal Income Code (IRC) to pay Social Security taxes for U.S. citizens and residents employed by the Affiliate.
This new agreement replaces the old agreement between the United States of America and the Swiss Confederation on Social Security, signed on 18 July 1979, and the supplementary agreement signed on 1 June 1988. Under the agreement, you normally pay U.S. Social Security taxes only if you work as a worker in the United States. When you work as a worker in Switzerland, you usually pay only Swiss social security contributions and neither you nor your employer pay US social security taxes. To determine your exemption from U.S. social security contributions during temporary transactions in the United States, your employer in Switzerland must apply for a certificate of coverage (FORM CH/USA 10) from the compensation fund in Switzerland that deducts your social security fees in Switzerland. To submit a entitlement to benefits in the United States or Switzerland as part of the agreement, follow the instructions of the „Rights to Benefits“ section. Under U.S. Social Security, you can earn up to four credits per year, depending on the amount of your salary covered. The amount needed to earn a work credit increases slightly each year. For more information, visit our website, www.socialsecurity.gov and receive a copy of our publication How You Earn Credits (Publication No. 05-10072).
The Swiss system measures credits in months. The table below shows the requirements in several years of appropriations for the simplification of information. If you are entitled to U.S. Social Security benefits and a Swiss pension and you do not need the agreement to qualify for either benefit, U.S. law may reduce the amount of your benefit in the United States. For more information, visit our website, www.socialsecurity.gov for a copy of our publication, Windfall Elimination Commission (publication 05-10045). If you are outside the United States, you can write to us at the U.S. address in the „More Information“ section.