Find your employer of record in United States of America

United States of America famous place - EOR World Wide
United States of America - EOR World Wide

United States of America

currency

United State Dollar (USD)

Currency

Payroll_Frequency

weekly

Payroll Frequency

Employer_Tax

14.96 to 28.16

Employer Tax

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Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Washington D.C.

United State Dollar (USD)

MM/DD/YY

January 1st-December 31st

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United States of America famous place - EOR World Wide

Find your employer of record in United States of America

United States of America

currency

United State Dollar (USD)

Currency

Payroll_Frequency

weekly

Payroll Frequency

Employer_Tax

14.96 to 28.16

Employer Tax

Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Washington D.C.

United State Dollar (USD)

MM/DD/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

0

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Overview

United State Dollar (USD)

CURRENCY

Washington D.C.

CAPITAL

weekly

PAYROLL FRECUENCY

11

PUBLIC HOLIDAYS

14.96 to 28.16

EMPLOYER TAXES

13TH / 14TH SALARY

The 13th Salary in this region is usual and typically given at the end of the year.

Employee and employeer taxation in United States of America

Employer

In the USA, state laws deal with unemployment and disability contributions, while Federal Insurance Contributions Act (FICA) and Federal Unemployment Tax Act (FUTA) relate to Social Security y Medicare. The percentages are as follows:

2.10% - 9.90%

Unemployment (State) *12,000 USD is the maximum taxable wage

4.10% - 4.10%

Unemployment - New Employer (State)

0.51% - 0.51%

Disability Insurance (State) *For annual wages up to 385.34 USD

6.20% - 6.20%

FICA Social Security (Federal) *For wages up to 147,000 USD

1.45% - 1.45%

FICA Medicare (Federal) *For wages up to 147,000 USD

0.60% - 6%

FUTA (Federal) USA companies can decrease their FUTA tax from 6.00% to even 0.60% if they are in a state with an unemployment insurance program. *For wages up to 7,000 USD



14.96% - 28.16%

Total Employment Cost

Employee

Worker Payroll Contributions

00.50%- 0.50%

Disability Insurance (State) *A maximum of 0.60 USD per week

6.20%- 6.20%

FICA Social Security (Federal)

1.45%- 1.45%

FICA Medicare (Federal) *147,000 USD is the maximum taxable wage

0%- 0.90%

Tax for earnings overcoming 200,000 USD. Such High-income earners also contribute with an additional 0.9% in Medicare.


8.15% - 9.05%

Total Employee Cost



Employee Income Tax in United States of America

Worker Income Tax


1) New York State Income Tax for Supplemental Wage/Bonus Rate: 13.78%


2) Single Filers’ New York State Income Tax


  • 4.00%: 8,500.00 USD and below
  • 4.50%: Between 8,500.00 USD and 11,700.00 USD
  • 5.25%: Between 11,700.00 USD and 13,900.00 USD
  • 5.90%: Between 13,900.00 USD and 21,400.00 USD
  • 5.97%: Between 21,400.00 USD and 80,650.00 USD
  • 6.33%: Between 80,650.00 USD and 215,400.00 USD
  • 6.85%: Between 215,400.00 USD and 1,077,550.00 USD
  • 9.65%: Between 1,077,550.00 USD and 5,000,000.00 USD
  • 10.30%: Between 5,000,001.00 USD and 25,000,000.00 USD
  • 10.90%: Over 25,000,000 USD

3) Married Couple Joint Filling New York State Income Tax


  • 4.00%: 17,150.00 USD and below
  • 4.50%: Between 17,150.00 USD and 23,600.00 USD
  • 5.25%: Between 23,600.00 USD and 27,900.00 USD
  • 5.90%: Between 27,900.00 USD and 43,000.00 USD
  • 5.97%: Between 43,000.00 USD and 161,500.00 USD
  • 6.33%: Between 161,500.00 USD and 323,200.00 USD
  • 6.85%: Between 323,200.00 USD and 1,077,550.00 USD
  • 9.65%: Between 2,155,351.00 USD and 5,000,000.00 USD
  • 10.30%: Between 5,000,001.00 USD and 25,000,000.00 USD
  • 10.90%: Over 25,000,000 USD

4) Married Couple Joint Filling New York State Income Tax

  • 4.00%: 17,150.00 USD and below
  • 4.50%: Between 17,150.00 USD and 23,600.00 USD
  • 5.25%: Between 23,600.00 USD and 27,900.00 USD
  • 5.90%: Between 27,900.00 USD and 43,000.00 USD
  • 5.97%: Between 43,000.00 USD and 161,500.00 USD
  • 6.33%: Between 161,500.00 USD and 323,200.00 USD
  • 6.85%: Between 323,200.00 USD and 1,077,550.00 USD
  • 9.65%: Between 2,155,351.00 USD and 5,000,000.00 USD
  • 10.30%: Between 5,000,001.00 USD and 25,000,000.00 USD
  • 10.90%: Over 25,000,000.00 USD

5) Single Taxpayer’s Federal Income Tax

  • 10.00%: 10,275 USD and below
  • 12.00%: Between 10,276.00 USD and 41,775.00 USD
  • 22.00%: Between 41,776.00 USD and 89,075.00 USD
  • 24.00%: Between 89,076.00 USD and 170,050.00 USD
  • 32.00%: Between 170,051.00 USD and 215,950.00 USD
  • 35.00%: Between 215,951.00 USD and 539,900.00 USD
  • 37.00%: Over 539,901.00 USD


6) Married Taxpayers’ Federal Income Tax


  • 10.00%: 20,550 USD and below
  • 12.00%: Between 20,551.00 USD and 83,550.00 USD
  • 22.00%: Between 83,551.00 USD and 178,150.00 USD
  • 24.00%: Between 178,151.00 USD and 340,100.00 USD
  • 32.00%: Between 340,101.00 USD and 431,900.00 USD
  • 35.00%: Between 431,901.00 USD and 647,850.00 USD
  • 37.00%: Over 647,851.00 USD

7) Heads of Households’ Federal Income Tax


  • 10.00%: 14,650 USD and below
  • 12.00%: Between 14,651.00 USD and 55,900.00 USD
  • 22.00%: Between 55,901.00 USD and 89,050.00 USD
  • 24.00%: Between 89,051.00 USD and 170,050.00 USD
  • 32.00%: Between 170,051.00 USD and 215,950.00 USD
  • 35.00%: Between 215,951.00 USD and 539,900.00 USD
  • 37.00%: Over 539,901.00 USD


8) Personal Exemption and Standard Deduction


  • Singles: 12,950.00 USD
  • Married Filing Jointly: 25,900.00 USD
  • Head of Household: 19,400.00 USD



*Taxes change according to the State.

United States of America famous place - EOR World Wide
United States of America famous place - EOR World Wide
Minimum Wage in United States of America
General

The federally mandated minimum wage in the United States is 7.25 U.S. dollars per hour, although the minimum wage varies from state to state. As of January 1, 2023, the District of Columbia had the highest minimum wage in the U.S., at 16.50 U.S. dollars per hour. In comparison, the minimum wage in the United Kingdom is 10.42 pounds per hour, where businesses often rely on employer of record in the United Kingdom to manage compliance with wage laws. In Australia, the minimum wage is 23.23 Australian dollars per hour, and utilizing Australia EOR services can help companies navigate these regulations. In Canada, where the minimum wage varies by province—with the highest being 16.75 Canadian dollars per hour in British Columbia—EOR Services in Canada ensure that companies meet local employment standards across different regions

$1160 Minimum Wage per month

United States of America famous place - EOR World Wide

Payroll Contributions in United States of America

Payroll Cycle

Salary payments in the USA are normally made in a semi-monthly and monthly frequency, according to the employment contract. Nonetheless, companies in New York use different paydays regarding the type of work and professional status or seniority of the employee:


  • By state law, manual laborers receive weekly payments. Therefore, they cannot get paid later than seven days after the end of their pay cycle. However, companies and non-profit organization can pay their manual laborers twice a month with special approval from the state labor department.
  • Railroad employees only receive their payments every Thursday.
  • Employees who work on commission, such as an outsourcing payroll team, must receive their payments at least once a month on the last day of the following month.
  • Office workers and other types of employees regularly receive their salary payments twice a month. Nevertheless, professional and senior employees can get paid monthly. 


13th Salary

In the USA, the 13th Salary is not a part of any law provisions.

Employee Benefit in United States of America

Visa and work permit in United States of America

A work visa or permanent resident status is mandatory to work in the USA. Hence, companies that want to hire the foreign best employer of record services expert must file a petition with the United States Department of Homeland Security.


They also can do so with the United States Citizenship and Immigration Services (USCIS). If such a petition is approved, the new employee must get a visa stamp from their United State embassy or consulate. Nevertheless, you do not need to do this if you are a Canadian citizen.


Types of Visas


Foreign employees of an employer of record services firm may apply for the following types of visas in the USA:


  • H-1B: For specialized work employees who have a college degree. It can be valid for three years and extended for another three years. Above all, it is connected to the employer. Therefore, every employee’s new employer must repeat the application process.
  • H-1B1: For employees with a college degree that come from Chile and Singapore.
  • H-2A: It is limited to qualified countries’ citizens to perform temporary or seasonal agriculture work. This visa is valid for one year, with the option of a three years extension.
  • H-2B: It is limited to qualified countries’ citizens to perform temporary non-agriculture work. Every global employer of record foreign expert can get one valid for one year, with the option of a three years extension.
  • L: Companies can use it to transfer employees to their USA hub from their foreign branch. For example, outsourcing payroll companies can bring foreign employees to the country if their length of employment is one year or more.
  • O: Reserved for people with outstanding abilities in arts, science, business, education, or athletics.  


If you seek an employment-based immigrant visa, you can apply for one of the following:


  • E-1: Reserved for employees with extraordinary abilities in education, arts, science, athletics, and business.
  • E-2: For employees with exceptional abilities or advances degrees.
  • E-3: Skilled, unskilled workers and professional can apply for it
  • E-4: For specific immigrant groups.
  • E-5: Foreign investors in USA companies.


On the other hand, employers can sponsor foreign employees’ applications for permanent resident status. Ergo, they can help them get a “Green Card” if such employees have distinctive skills. As a result, they can live in USA and work for an employer of record USA firm.


VAT in United States of America

In New York, the minimum combined sales tax rate is of 8.52%. However, it changes according to the State.

Working Hours in United States of America
General

The regular work week is 40 hours long and involves working up to 8 daily hours.

Overtime

States such as New York adheres to the Fair Labour Standards Act (FLSA). In short, it states that working over 40 hours per week is considered overtime and must be paid at 150% of the regular day.


On the other hand, employees scheduled to work during weekends or rest days do not receive additional payments. But, employers who ask their employees to work in exceptional circumstances during such days must pay 150% of their regular day.


Furthermore, overtime hours must relate to the work the employees perform. For instance, regular employees get 150% of their regular day when they work over 40 weekly hours. On the contrary, live-in employees get it when they work over 44 weekly hours, and farmers by working over 60 weekly hours.


Working Week

Monday to Friday.

Employee Termination in United States of America
Termination Process

USA laws do not include paragraphs related to a formal notice period to terminate an individual employment relationship. The only exception to this is when an employment contract or a collective bargaining agreement stipulates it. After all, they state that employment is stipulated as “at will.”


Moreover, the Federal Worker Adjustment and Retraining Notification Act (WARN) allows employees to end their employment relationships without notice or reason.


For executive positions, employment contracts often include just cause termination clauses, which indicate the list of grounds for termination. As any PEO employer of record expert will tell, they are foundations that parties must negotiate before signing their contracts.  


Notice Period

Despite not having an official notice period, most USA employees use a two weeks’ notice as a minimum requirement. However, employers must give 60 days’ notice for mass dismissal cases, as the Worker Adjustment and Retraining Notification Act demands.


On the other hand, several states use specific practices regarding their notice periods. For instance, New York allows employers and employees to terminate the employment relationship without notice. On the contrary, employees in Texas often give advanced notice of resignation to get unused vacation days payments. 


Severance Pay

As with their notice period, no USA law state that employees must pay severance. On the contrary, they only should pay it if they choose to include it in their employment contract. For such cases, several employees provide severance payments linked to their length of employment.


Probation Period

Most companies in the USA set a performance evaluation for new employees during their first 90 days. Nonetheless, it is not established by any law or regulation or international employer of record services rules.


Employee Leaves in United States of America
Paid Time Offs

There is no state law in New York that establishes the amount and payment of vacation time. Nonetheless, employers normally offer their employees paid or unpaid vacation leave according to employment law. Besides, it must be clearly stipulated in collective bargaining agreements.


United States of America famous place - find your EOR
Public Holidays

There are 11 national holidays throughout the year.

Vacation Holidays

There are 0 vacation holidays throughout the year.

Sick Days

According to the Family and Medical Leave Act (FMLA), employers must provide leave for employees that cannot perform their essential functions because of severe health conditions. Regularly, every employer provides up to 12 weeks of job-protected leave without pay per year for medical and family reasons.


However, not every employee can get them. Indeed, employers who know the benefits of outsourcing payroll cannot provide it for their employees if they have less than a year working for them. Moreover, such employees must also work 1,250 hours over the past year.


On the other hand, they are also not eligible for FMLA if they worked at a company location with 50 or more employees within 75 miles. It is something that employer of record payroll services providers emphasize constantly.


Last but not least, New York City and Westchester County have other paid sick leave laws for employers with five employees or more. They establish that if employees have a minimum of 12 months of employment, they can get 1 hour of paid sick leave for every 30 worked hours.


Paternity Leave

Paternity leave in the USA also falls under the FMLA. In essence, it allows every father to a twelve working weeks leave in any one year for a child’s birth.


In New York, employees can use additional paternity leave laws outlined in the New York Paid Family Leave Act. As a result, they can extend the paternity leave for an additional 12 weeks, which they can take at once or intermittently.


Employees can enjoy their paid family leave if they have at least 26 weeks of employment or work over 20 weekly hours. During paternity leave, employees will receive their payments by-weekly through the mother’s insurance company.


Finally, employees who know about payroll outsourcing services can use paternity leave for other reasons. For example, they can use it to take care for a relative with a severe health condition.  


Paternal Leave

According to the FMLA, employees can use Parental Leave to adopt or foster care of a child. On the other hand, they can use it to handle a qualifying necessity related to a family member on active military duty. Consequently, employers that outsource payroll must respect this.


Other Leave

All employees can ask for additional leave to take care of their spouse, parent, or child with a severe health condition. Furthermore, they also can take 26 working weeks of leave every year to care for a service member with a serious injury or illness (military caregiver leave).


On the other hand, employee working for employer of record payroll services companies in New York can enjoy the following:


  • Paid or unpaid leave for jury duty. It is available for all full-time employees, who must receive the first 40 USD of their regular daily wages during their jury service.
  • Military spouse leave when the employee’s military service member is on leave from deployment. Such a leave can be up to 10 days if they are a spouse to a military services member who is deployed to a military conflict.


Maternity Leave in United States of America

Maternity leave in the USA also falls under the FMLA. In essence, it allows every mother to have twelve working weeks' leave in any year for a child’s birth. Most importantly, it is mandatory for all mothers regardless of their job on an employer of record service or elsewhere.


In New York, employees can use short-term disability benefits for a child’s birth. As a result, they can extend the maternity leave for an additional 26 weeks. Furthermore, they allow the mother to earn 50% of her average salary from the previous 8 weeks. 


There are 60 leave throughout the year.

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