TN 5 (06-14)

A. Policy for the United States

For the United States, the Totalization agreement applies to Social Security taxes related to the Retirement, Survivors and Disability insurance (RSDI) program (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 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.

B. Policy for the Slovak Republic

For the Slovak Republic, the agreement applies to taxes that finance retirement, survivors and disability benefits under the Act on Social Insurance. Consequently, if a worker is exempt from Slovak coverage as a result of the agreement, no contributions are due under the Act on Social Insurance.