For the United States, the Agreement applies only to the Retirement, Survivors, Disability,
and Health Insurance (RSDHI) program’s Federal Insurance Contributions Act (FICA)
taxes for employment and Self-Employment Contributions Act (SECA) taxes for self-employment,
including the Medicare portion of these taxes. If an individual is exempt from U.S.
Social Security coverage under this Agreement, the employee or employer's share of
the FICA tax is not due as long as the exemption is in effect. 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.
The U.S. laws to which the Agreement applies are Title II of the Social Security Act
except section 226 (Medicare benefits), 226A (Medicare coverage for certain persons
suffering from renal disease) and section 228 (special age-72 payments-prouty benefits).
Hospital insurance under Medicare has been excluded. Individuals to whom the Agreement
applies, who qualify independently for Medicare hospital insurance benefits, would
be entitled to receive such benefits.