For the United States, the agreement applies to the Retirement, Survivors and Disability
Insurance (RSDI) program's Federal Insurance Contributions Act (FICA) taxes for employment
and Self Employment Contributions Act (SECA) taxes for self-employment, including
the Medicare portion. If an employee is exempt from U.S. Social Security coverage
under this agreement, neither the employee nor employer has to pay his or her share
of the FICA tax as long as the exemption is effective. A self-employed individual
is also exempt from paying SECA taxes (equivalent to the employee and employer share
of the FICA tax) for any period the exemption is effective.