United States – California
HR & Labor
Raised from $840 per week, and $43,680 per year to $880 per week and $45,760 per year.
It is no longer permissible to to consider a candidates salary history or criminal history when recruiting and hiring new employees.
With the new Paid Parental Leave Act (AB 908) paid family leave and temporary disability increased from 55 to 60 percent of employees salary.
Minimum wage is $10.50 per hour.
The government contributes 68.63% of the employee’s wages.
The employee contributes 31.37% of the regular wages. Maximum contributions are $18,000.
The severance payment includes all the wages up until the day of termination and unused vacation days.
Advance notice is 2 weeks.
If an employee is discharged, he/she must be paid fully on the last day of employment including for the unused vacation days. If an employee quits, he/she will be paid on the scheduled payday.
Number of vacation days are agreed by the employer and employee at the time of beginning of the employment.
No official laws on number of sick days, however each employer must provide its employees with a sick leave.
There are 7 paid public holidays per year.
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
1. Medicare - 1.45%
2. Social Security - 6.2%
3. Unemployment Tax - 6.0% and maximum taxable earnings are $7,000
1. Unemployment Insurance- 3.4% with maximum taxable earnings of $7,000
2. Disability insurance - 0%
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 are not permitted.
2. Disability insurance - 0.9% with maximum withholding of $960.68 and maximum taxable earnings of $106,742.
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 tax is 7.5%.