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.