United States – Arizona

Employment

There is no official form of employment contract – it can be orally or written.

Payroll

Salaries are paid bi-weekly.

HR & Labor

Working Hours: Full time employment is 40 hours per week. Under federal law, employers are required to pay non-exempt employees 150% times the employee’s regular hourly rate for any hours worked over 40 during the week.
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Minimum Working Age: An employee can be 14 years of age if they are employed outside of school hours, they can officially be employed during school hours at the age of 16.

Immigration

In order to work legally in the United States of America, an employee must be a citizen of the US, have a permanent resident status (Green Card), H-1B visa or L-1 visa.

Benefits

Arizona does not require the employers to provide employees with breaks during their workday, however the employee is entitled to be paid for the work they do during their break.

Minimum Wage

Minimum wage $10.00 per hour.

Pension Fund

Employer has to contribute 11.34% of the employee's wages.

Employee has to contribute 11.34% of his/her wages. Contribution limit is $18,000.

Severance Payments

There is no official state or federal law regarding severance payments. It depends on the company’s policies.

Advance Notice

There is no official notice period, but general practice is 2 weeks.

Termination Procedure

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

Vacation Days

There is no official law regarding vacation days for employee. Each employer decides the number of days upon hiring the employee.

Sick Days

No official law regarding sick days.

Public Holidays

There are 14 official paid public holidays. If an employee works during these days, they receive 150% of the regular wages as compensation.

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 Withholdings

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 - 2.0% with maximum taxable earnings of $7,000

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.

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

VAT / State Sales Tax

The state sales tax is 5.6%.