Overview
Capital
Currency
United States Dollar (USD)Taxes
Employer
6.20% - Social Security Tax
1.45% - Medicare Rate
Up to 5% - State Taxes
1.45% - Medicare Rate
Up to 5% - State Taxes
Employee
Minimum Wage
General
Minimum wage $10.00 per hour.
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.
Paid Time Off
Vacation days
There is no official law regarding vacation days for employee. Each employer decides the number of days upon hiring the employee.
Sick days
No official law regarding sick days.
Public Holidays
There are 14 official paid public holidays. If an employee works during these days, they receive 150% of the regular wages as compensation.
VAT
General
The state sales tax is 5.6%.
Mandatory Benefits
Pension Fund
Employer: has to contribute 11.34% of the employee's wages.
Employee: has to contribute 11.34% of his/her wages. Contribution limit is $18,000.
Employee: has to contribute 11.34% of his/her wages. Contribution limit is $18,000.
Social Security
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
Advance Notice
There is no official notice period, but general practice is 2 weeks.
Severance Pay
There is no official state or federal law regarding severance payments. It depends on the company’s policies.
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
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.
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.
Termination
Termination Process
An employee can be terminated at any time as they are considered “at will employees”. No specific termination policies.
