Overview

Capital
Currency
United States Dollar (USD)

Taxes

Employer
6.20% - Social Security Tax
1.45% - Medicare Rate
Up to 4.63% - State Taxes
Employee

Minimum Wage

General
Minimum wage $7.25 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.

VAT

General
The state sales tax is 6%.

Mandatory Benefits

Pension Fund
Employer: has to contribute 11.32% of the employee's wages.
Employee: has to contribute 6.79% of his/her wages.
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 - 1.395%
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.

Termination

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