United States – Texas

Employment

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

Payroll

Salaries are paid bi-weekly or monthly.

HR & Labor

Working Hours: Full time employment is considered 40 hours per week. Minimum Working Age: An employee must be at least 14 years old to be employed.

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.

Minimum Wage

The minimum wage is $7.45 per hour.

Pension Fund

The state contributes 7.5% of the employee wages.

The employee contributes 7.5% of monthly wages. Contribution limit is $18,000.

Severance Payments

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

Advance Notice

Advance notice is 2 weeks.

Termination Procedure

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.

Vacation Days

The state law does not require official vacation time to be given to the employees. It depends on the agreement with the employer.

Sick Days

No official law requires the employer to give employees sick days. Depends on the prior agreement upon start of employment.

Public Holidays

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

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 - 2.7% with maximum taxable earnings of $9,000.

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 - Voluntary contributions permitted.

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 6.25%.