United States – Arkansas
HR & Labor
Minimum wage $8.50 per hour.
Employer has to contribute between 5-10% of the employee's wages depending on pension plan and occupation.
Employee has to contribute between 5-10% of his/her wages depending on pension plan and occupation.
There is no official state or federal law regarding severance payments. It depends on the company’s policies.
There is no official advance notice period, but general practice is two weeks.
An employee can be terminated at any time as they are considered “at will employees”. No specific termination policies.
There is no official law regarding vacation days for employee. Each employer decides the number of days upon hiring the employee.
No official law regarding sick days.
There are 15 official paid public holidays, private employers are not required to pay additional pay during these days.
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%
1) Unemployment Insurance - 2.9%
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 - Employees can contribute voluntarily.
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
The state sales tax is 6.5%.