For the United States, the Agreement applies to the Old-age, Survivors and Disability
Insurance (OASDI) program and the corresponding tax laws (Federal Insurance Contributions
Act (FICA) taxes for employment and Self-Employment Contributions Act (SECA) taxes
for self-employment). The Agreement does not apply to Medicare provisions. If an employee
is exempt from U.S. Social Security coverage under this Agreement, neither the employee's
nor the employer's 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's
and the employer's shares of the FICA tax) for any period the exemption is effective.
The U.S. laws to which the Agreement applies are Title II of the Social Security Act
except sections 226 (Medicare benefits), 226A (Medicare coverage for certain persons
suffering from renal disease) and 228 (special age-72 payments - Prouty benefits).
Hospital insurance under Medicare has been excluded. It is understood, though not
specified, that persons to whom the Agreement applies who qualify independently for
Medicare hospital insurance benefits would be entitled to receive such benefits.