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Apply for a Certificate of coverage online.
When we issue a certificate, keep a copy for your records and give the original to your employee to take with them to the United States.
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When did the agreement start?
The agreement started on 1 October 2002.
What Australian law does the agreement apply to?
The agreement applies to the Australian superannuation guarantee legislation requiring you as the employer to make superannuation guarantee contributions for your employees.
In relation to United States law, the agreement applies to the relevant United States social security and tax laws. For more information and the agreement, visit the Department of Families, Housing, Community Services and Indigenous Affairs website at http://www.fahcsia.gov.au/about-fahcsia/international-social-security-agreements
When does the agreement apply?
The agreement only applies where double superannuation coverage occurs. This happens when you, or your employee, are required to make super contributions (or equivalent) under both the Australian and United States law for the same work undertaken by your employee.
Employees working temporarily in the other country (seconded employees)
Where you send your employee to another country to work for a temporary period (not exceeding five years) and double super coverage occurs, you and your employee are subject only to the super laws of your home country. This means superannuation guarantee contributions (or equivalent) are only required under the law of the country that your employee is most likely to retire in.
Example
Bill is sent by his Australian employer to work in the United States for two years. Bill's employer must make contributions in Australia under the superannuation guarantee legislation. Bill and his employer must also make social security contributions under the relevant United States law.
As double super coverage occurs, the agreement takes effect and exempts Bill and his employer from making contributions under United States law. Bill's employer will continue to make contributions as required under the superannuation guarantee legislation in Australia.
This rule also applies where the employee is sent to work for a related company (provided double super coverage occurs).
In addition, this rule applies where the Australian employee was initially sent to a country other than the United States and is then sent from that country to the United States.
Example
Martha is sent by her Australian employer to work in Singapore for six months and is then sent from Singapore to the United States to work for a year. Martha will still be covered by Australia's superannuation guarantee legislation as well as the United States laws while working in the United States - therefore double super coverage occurs.
Under the agreement, Martha and her employer will be exempt from making social security contributions in the United States under the relevant United States law but Martha's employer will continue to make contributions as required under the superannuation guarantee legislation in Australia.
Government employees working temporarily in the other country (seconded government employees)
Where a government employee is sent from one country to work in the other country temporarily, and double super coverage occurs, the employee and employer will be subject only to the laws of the first country. For example, if a government employee is sent to work in the United States, only Australian law will apply and the employer and employee will not be required to make social security contributions under United States law.
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The secondment period for government employees to work in the United States is not subject to the five-year limit.
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Self-employed people
The agreement does not apply to self-employed Australian residents working in the United States. They are not subject to the superannuation guarantee law in Australia so double super coverage does not occur.
Work on ships and aircraft
If double super coverage occurs for a person working on a ship or aircraft in international traffic, the law that will apply is the law of the country in which the person is a resident.
Diplomats
The agreement does not affect the treatment of diplomats and consulate officials under the relevant Vienna Conventions on diplomatic and consular relations.
Certificates of coverage for seconded employees
Where an employee from Australia is sent to work temporarily in the United States, we will issue a Certificate of coverage to you on the basis you will continue to make superannuation guarantee contributions on behalf of your employee.
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You should apply for a Certificate of coverage from us before sending your employee to work temporarily in the United States.
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Last Modified: Thursday, 30 August 2012