TN 16 (11-96)
RS 02001.360 Scope of the U.S. United Kingdom Agreement
With respect to U.S. Social Security taxes, the agreement only applies to taxes under
the RSDHI program (i.e., FICA for employees and employers and SECA for self-employed).
It does not include any taxes related to other programs such as Workers' Compensation
or Unemployment Insurance. Thus, if an individual is exempt from U.S. Social Security
coverage under this agreement, neither the employee nor the employer share of the
FICA tax, nor the SECA tax in the case of a self-employed person, is required to be
paid. However, any other employment taxes are still due.
Regarding U.K. social security taxes, the agreement applies to contributions financing
not only old-age, survivors and disability benefits, but also cash sickness benefits,
maternity benefits, death grants, unemployment insurance and benefits under the industrial
injuries scheme. As a result, a worker who is exempt from U.K. coverage under this
agreement is exempt, together with his employer, from paying U.K. social security
contributions for all of these programs.