Overview

Capital
Currency
United States Dollar (USD)

Taxes

Employer
6.20% - Social Security Tax
1.45% - Medicare Rate
Up To 5.02% - State Taxes
Employee

Termination

Termination Process
NY follow “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

Minimum Wage

General
The New York State minimum wage is $10.40 per hour. In Long Island and Westchester, it is $11.00 per hour. In NYC for small employers (of 10 or less) it is $12.00 per hour, and for large employers (of 11 or more) it is $13.00 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.

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- 4.1%
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.

VAT

General
State sales tax is 4.5% standard rate.

Mandatory Benefits

Pension Fund
Employer:The state contribution is 27.6% of the employee's wages
Employee:The employee contribution is 20.1% of monthly wages. Contribution limit is $18,000
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
Advance notice is 2 weeks.
Severance Pay
Depends on the agreement between the employer and employee.