For the United States, the agreement applies to the Retirement, Survivors, and Disability (RSDI) program and the corresponding tax laws (Federal Insurance Contributions Act (FICA) taxes for employment and Self-Employment Contributions Act (SECA) taxes for self-employment, including the Medicare portion). The agreement does not apply to Medicare benefits laws. If an employee is exempt from U.S. Social Security coverage under this agreement, neither the employee nor the employer share of the FICA tax is due as long as the exemption is effective. A self-employed person is exempt from paying SECA taxes (equivalent to the employee and employer shares of the FICA tax) for any period the exemption is effective.

For Switzerland, the agreement applies to social security taxes that finance old-age, survivors and disability benefits. Consequently, if an individual is exempt from Swiss social security coverage as a result of the agreement, no contributions are due under those programs.