For the United States, the Totalization agreement applies to the Retirement, Survivors and Disability Insurance (RSDI) program (Federal Insurance Contributions Act (FICA) taxes for employment and Self Employment Contributions Act (SECA) taxes for self-employment. The agreement does not apply to Medicare provisions. If an employee is exempt from U.S. social security coverage under this agreement, neither the employee nor the employer has to pay his or her share of the FICA tax as long as the exemption is effective. A self-employed individual is also exempt from paying SECA taxes (equivalent to the employee and employer share of the FICA tax) for any period the exemption is effective.

For Uruguay, the agreement applies to the laws governing old age, disability, and death under the different schemes currently governing social insurance in Uruguay. Consequently, if a worker or self-employed person is exempt from Uruguayan coverage because of the agreement, no contributions are due for these programs.