United States – Texas
HR & Labor
The minimum wage is $7.45 per hour.
The state contributes 7.5% of the employee wages.
The employee contributes 7.5% of monthly wages. Contribution limit is $18,000.
The severance payment depends on the agreement with the employer and employee.
Advance notice is 2 weeks.
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.
The state law does not require official vacation time to be given to the employees. It depends on the agreement with the employer.
No official law requires the employer to give employees sick days. Depends on the prior agreement upon start of employment.
There are 16 official holidays but the it is not required by the state to give employees these days off.
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 - 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.
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 6.25%.