TN 17 (06-97)
RS 02001.155 Scope of the U.S. - Swiss 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 the agreement, neither the employee or employer share of the FICA tax, nor the SECA tax in the case of self-employment, has to be paid.
B. POLICY - SWITZERLAND
For Switzerland, the agreement applies to Swiss Social Security taxes that finance retirement, survivors and disability benefits. Consequently, if an individual is exempt from Swiss Social Security coverage as a result of the agreement, no contributions are due under those programs.