For the United States, the Agreement applies to the Old-age, Survivors, and Disability
Insurance (OASDI) program and corresponding 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's nor the
employer's share of the FICA tax is due as long as the exemption is effective. A self-employed
person is exempt from paying SECA taxes (equivalent to the employee's and the employer's
shares of the FICA tax) for any period the exemption is effective.
The U.S. laws to which the Agreement applies are Title II of the Social Security Act
except section 226 (Medicare benefits), 226A (Medicare coverage for certain persons
suffering from renal disease) and section 228 (special age-72 payments-Prouty benefits).
Hospital insurance under Medicare has been excluded. Individuals to whom the Agreement
applies, who qualify independently for Medicare hospital insurance benefits, would
be entitled to receive such benefits.