Overview

Capital
Washington, D.C.
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy

Taxes

Employer

Employer Payroll Tax

6.20%
FICA Social Security
1.45%
FICA Medicare
0.90%
Additional Medicare Tax (for income above $200,000)
6.0%
FUTA (Federal Unemployment Tax Act)
14.55% Total Employment Cost
Employee

Employee Payroll Taxes

6.2%
FICA Social Security
1.45%
FICA Medicare
6.0%
FUTA (Federal Unemployment Tax Act) 
13.65% Total Employee Cost

Employee Income Tax

Single
10.00%
Up to 9,950.00 USD
12.00%
9,951.00-40,525.00 USD
22.00%
40,526.00-86,375.00 USD
24.00%
86,376.00-164,925 USD
32.00%
164,926.00-209,425.00 USD
35.00%
209,426-523,600 USD
37.00%
Over 523,600.00 USD

Employee Income Tax

Married, filing jointly
10.00%
Up to 19,900.00 USD
12.00%
19,901.00-81,050.00 USD
22.00%
81,051.00-172,750.00 USD
24.00%
172,751.00-329,850.00 USD
32.00%
329,851.00-418,850.00 USD
35.00%
418,851.00-628,300.00 USD
37.00%
Over 628,300.00 USD
Employee

Employee Income Tax

For Heads of Households
10.00%
Up to 14,200.00 USD
12.00%
14,201.00-54,200.00 USD
22.00%
54,201.00-86,350.00 USD
24.00%
86,351.00- 164,900.00 USD
32.00%
164,901.00-209,400.00 USD
35.00%
209,401.00-523,600 USD
37.00%
Over 523,600.00 USD
Employer Taxes
3 HIGHEST
3 LOWEST
China
Brazil
Belarus
Federal
South Africa
Georgia
Macedonia
41.12%
36.8%
34%
14.55%
2%
2%
0%

Minimum Wage

General

The federal minimum wage is $7.25 per hour for employees that are covered by the Fair Labor Standards Act. However, it is possible that an employee is also subject to the state’s minimum wage laws in which case, the employee is entitled to the higher of the two.

Minimum wage (per month)
$4000
$2663
$2491
$1160
$36.80
$22
$2.33
Geneva
Luxembourg
Australia
Federal
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

State laws vary concerning the timing of payment after a pay period ends and payment in light of holidays and weekends, as well as requiring specific paydays.

The majority of states require payment of wages semimonthly; however, some states allow for monthly payment of wages, while other states require weekly payment.

Working Hours

General

In the US, a full-time employee is typically engaged for a 40-hour work week. Part-time employees are classified as employees who work less than 30 hours a week. In addition, part-time employees are not entitled to medical benefits.

Overtime

Nonexempt hourly employees must be paid one-and-a-half times their regular rate of pay for all hours worked over 40 in a workweek. Employers are not required to pay overtime for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.

FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. They should also meet the minimum salary threshold to qualify as exempt.

A few states require that employers provide employees with a day of rest each week and/or compensate them at a premium rate for work performed on the seventh consecutive day of work.

Leave

Paid Time Off

In general, there is no statutory requirement to pay employees for time off for vacations or holidays.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Federal
Malaysia
China
Federal
30
13
43
30
12
42
24
17
41
10
10
8
6
14
5
7
12
10
10
Public Holidays

There are 10 federal holidays in the United States and there are 9 US Stock Exchange holidays that are observed annually.

The federal Fair Labor Standards Act does not require employers to pay their employees for time not worked, such as holidays. The same is true in the vast majority of states. These benefits are generally a matter of contract between the employer and the employee.

Sick Days

The Family Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child). Employers are required to maintain the employees’ health benefits during their leave and keep their job open. 

Employees are eligible for leave if they have worked for their employer at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles. Whether an employee has worked the minimum 1,250 hours of service is determined according to the Fair Labor Standards Act principles for determining compensable hours or work. 

Many states will have additional Family, Medical, Maternity, and parental leave that will either work concurrently with FMLA leave or in addition. 

Maternity Leave

Falls under the FMLA. See Family Care Leave for more information.

PAID MATERNITY LEAVE (DAYS)
410
365
365
0
45
30
0
Bulgaria
Serbia
Albania
Federal
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Falls under the FMLA. See Family Care Leave for more information.

Parental Leave

Falls under the FMLA. See Family Care Leave for more information.

Termination

Termination Process

When dismissing a worker, the employer has a responsibility to ensure federal, state, and city ordinances are followed when off-boarding an employee. Some jurisdictions will impose a penalty if the following items are not processed as per the jurisdictions’ timeframe, including providing the employee a termination/unemployment notice, processing final pay, and ensuring a worker’s COBRA (benefit) information processed.

Notice Period

Employees are employed ‘at will’ and U.S. law does not require a formal notice period to terminate an individual employee. Therefore, either party can terminate the employment relationship with no notice.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed and employers must give 60 days’ notice to impacted employees.  There are a number of states which have their own provisions for mass layoff which go above the federal requirement.

Severance Pay

There is no requirement for severance pay and it is a matter of agreement between an employer and an employee. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties.  Some employers choose to offer severance based on their employee’s length of service as an example.

VAT

General

No federal VAT

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    Questions & Answers

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    Carly H.
    Carly H.
    4 months ago

    Can you carry over unused paid leave? 

    Emily Kuhnert
    Admin
    4 months ago
    Reply to  Carly H.

    In general, there are no laws regarding paid annual vacation in the United States. If paid leave is given to an employee, it is generally outlined in the employment agreement or company policy. This usually will include provisions such as how paid vacation must be used.

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