TN 17 (06-97)
RS 02001.055 Scope of the U.S. - Italian Agreement
A. POLICY - UNITED STATES
For the United States, the agreement applies to Social Security taxes under the RSDHI program (i.e., FICA taxes in the case of employment and SECA taxes in the case of self-employment, including the Medicare portion). Thus, if an individual is exempt from U.S. Social Security coverage under this agreement, neither the employee or employer share of the FICA tax, nor the SECA tax in the case of a self-employed person, has to be paid.
B. POLICY - ITALY
For Italy, the agreement applies to Social Security taxes that finance retirement, survivors and disability benefits as well as family allowances. Consequently, if an individual is exempt from Italian coverage as a result of the agreement, no contributions are due under any of these programs. However, contributions may still have to be made for other types of Italian benefits financed through Social Security taxes such as cash sickness, maternity, unemployment, etc.