Overview

Capital
Austin
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy

Taxes

Employer

Employer Payroll Tax

6.20%
Social Security Tax
1.45%
Medicare Rate
Up To 7.47%
State Taxes
Up To 15.12% Total Employment Cost

Minimum Wage

General

The minimum wage is $7.45 per hour.

Payroll Contributions

Social Security

In the US, both the employer and employee contribute 6.20% for social security. 

Pension Fund

Employer:The state contributes 7.5% of the employee wages.
Employee:The employee contributes 7.5% of monthly wages. Contribution limit is $18,000.

Health Insurance

Both the employer and employee contribute 1.45% to Medicare. 

Leave

Public Holidays

There are 16 official holidays but the it is not required by the state to give employees these days off.

Termination

Termination Process

TX 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.

Notice Period

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.

VAT

General

The state sales tax is 6.25%.

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