Overview

Capital

Currency United States Dollar (USD)

Taxes

Employer 6.20% - Social Security Tax
1.45% - Medicare Rate
Up to 4.12% - State Taxes

Employee

Termination

Termination Process An employee can be terminated at any time as they are considered “at will employees”. No specific termination policies.

Advance Notice According to Alabama Labor Law, employment can be terminated with no notice. However, if there is an employment contract than the stated notice is required.

Severance Pay There is no official state or federal law regarding severance payments. It depends on the company’s policies.

Mandatory Benefits

Pension Fund Employer: has to contribute between 10.82%-13.89% of the employee's wages dependent on occupation.
Employee: has to contribute 10.82%-13.89% of his/her wages dependent on occupation.

Social Security 6.2% of employee cost

Minimum Wage

General Minimum wage is $7.25/hr

Non Mandatory

Expat Benefits 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.

Payroll

Additional Employee Withholding

Federal:
1. Medicare - 1.45%
2. Social Security - 6.2%
3. Unemployment Tax - 6.0% and maximum taxable earnings are $7,000
State:
1. Unemployment Insurance - 2.0% with maximum taxable earnings of $7,000
Federal:
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%
State:
1. Unemployment insurance - Employees can contribute voluntarily.

VAT

General 4%