For the United States, the agreement applies to Social Security taxes related to the retirement, survivors, disability, and health insurance (RSDHI) programs (i.e., Federal Insurance Contributions Act (FICA) taxes for employment and Self-Employment Contributions Act (SECA) taxes for self-employment, including the Medicare portion). Thus, if an employee is exempt from U.S. Social Security coverage under this agreement, neither the employee nor employer has to pay their share of the FICA tax with respect to that employee for any period the exemption is effective. A self-employed person is also exempt from paying the SECA taxes (equivalent to the employee and employer share of the FICA tax) for any period the exemption is effective.

For more information about the benefit programs included in the agreement, see GN 01749.110.

For the Czech Republic, the agreement applies to Social Security taxes related to the old-age, survivors, and disability benefits (OASDI), as well as unemployment insurance. Consequently, if a worker is exempt from Czech coverage as a result of the agreement, no contributions are due for these programs.

On May 1, 2016, a supplementary agreement between the United States and the Czech Republic entered into force as described in RS 02002.150A. Beginning on that date, the U.S. workers exempt from Czech old-age, survivors, disability and unemployment insurance will also become exempt from paying Czech health insurance taxes.

GN 01749.110 Scope of the U.S. — Czech Agreement

RS 02002.150A Policy - The current agreement and supplementary agreement