For the U.S., the agreement applies to Social Security taxes related to the retirement,
survivors, disability and health insurance (RSDHI) programs (i.e., Federal Insurance
Contributions Act (FICA) taxes for employment and Self-employment Contributions Act
(SECA) taxes for self-employment, including the Medicare portion). Thus, if an employee
is exempt from U.S. Social Security coverage under this agreement, neither the employee
or employer has to pay their share of the FICA tax with respect to that employee for
any period the exemption is effective. A self-employed person is also exempt from
paying the SECA taxes (same as to the employee and employer share of the taxes) for
any period the exemption is effective.