Currency United States Dollar (USD)


Employer 6.20% - Social Security Tax
1.45% - Medicare Rate
Up To 7.47% - State Taxes



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.

Mandatory Benefits

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.

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 The severance payment depends on the agreement with the employer and employee.

Minimum Wage

General The minimum wage is $7.45 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.


Additional Employee Withholding

1. Medicare - 1.45%
2. Social Security - 6.2%
3. Unemployment Tax - 6.0% and maximum taxable earnings are $7,000
1. Unemployment Insurance - 2.7% with maximum taxable earnings of $9,000.
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%
1. Unemployment Insurance - Voluntary contributions permitted.


General The state sales tax is 6.25%.