United States – District of Colombia
HR & Labor
Minimum wage $11.50 per hour.
Employer has to contribute 7% of the employee's wages.
Employee has to contribute 5% of his/her wages.
There is no official state or federal law regarding severance payments. It depends on the company’s policies.
There is no official notice period, but general practice is 2 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 11 official public holidays. Private employers are not obligated to provide vacation and or extra pay for 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% and maximum taxable earnings are $7,000
1) Unemployment Insurance - 2.0% with maximum taxable earnings of $7,000
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 5.75%.