Overview

Capital
Currency
United States Dollar (USD)

Taxes

Employer
6.20% - Social
1.45% - Medicare
Up To 5.16% - State Taxes
Employee

Minimum Wage

General
Minimum wage is $11.00 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.

VAT

General
The state sales tax is 6.25%.

Mandatory Benefits

Pension Fund
Employer:contributes 4% of the total payroll per month for the employees pension funds.
Employee:contributes 9% of the monthly salary to pension fund.
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.
Advance Notice
While there is no official period required, the general practice is is 2 weeks.
Severance Pay
Maryland law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.

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 - 1.87%
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 - Voluntary contributions permitted.

Termination

Termination Process
Massachusetts follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason. Therefore at the time of termination, the employer must pay all the necessary wages up to the day of termination.