United States – Massachusetts
HR & Labor
Minimum wage is $10.00 an hour.
The employer contributes 6.2% of earnings for each employee.
Employees pay 6.2% of their earnings. Additional 1.45% is taken out of all earnings for Medicare’s Hospital Insurance Trust Fund. Contribution limit is $18,000.
Severance payments are not required in MA. A company can offer the employee some kind of a severance package, however in MA it counts as income and terminated employee will not be able to file for unemployment if they accept the severance package.
Giving a “two-weeks” advance notice is considered the “right” thing to do, however employees are free to leave their job whenever.
If an employee is discharged, he/she must be paid fully on the last day of employment including for the unused vacation days. If an employee quits, he/she will be paid on the scheduled pay day.
Employee is entitled to 40 hours sick leave per year.
If the employer has 11 or more employees – sick days must be paid for. If 10 or less employees – sick days are unpaid.
If out for 3 consecutive days, employer can request proof of medical documentations.
State and public employees have total of 13 paid off holidays. However, no law in MA requires private companies to give paid time off for a holiday. Paid holidays vary depending on the company’s internal policy.
There are no official expat benefits. However different companies can offer special benefits for the expats working for them. Benefits differ from one company to another.
Additional Employee Withholdings
1. Medicare - 1.45%
2. Social Security - 6.2%
3. Unemployment Tax - 6.0% and maximum taxable earnings are $7,000
1. Unemployment Insurance - 1.87% with maximum taxable earnings of $15,000.
2. Employer Medical Assistance Contribution - 0.12% for third year of liability, 0.24% for fourth year and 0.34% for fifth year and on.
3. Workforce Training Fund - 0.056%
1. Medicare - 1.45% (additional 0.9% contribution for employees earning less than $200,000)
2. Social Security - 6.2% with salary ceiling of $118,500
3. Unemployment Tax - 0%
1. Unemployment Insurance - Voluntarily contribution
2. Employer Medical Assistance Contribution - 0%
3. Workforce Training Fund - 0%
As of 2011, after the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2010, the Social Security tax rate is 4.2 percent of an employee's wages.
In addition, there is a limit to the amount of wages that are subject to Social Security taxes. In 2016, the taxable wage base is be $118,500.
VAT / State Sales Tax
State sales tax is 6.25%.