Good to know
Local Currency: United States Dollar (USD)
Minimum Salary: The federal minimum wage for covered nonexempt employees is $7.25 per hour (source : U.S. Department of Labor).
Many states have also minimum wage laws (see the interactive map on the U.S. government portal). When an employee is subject to both the state and federal minimum wage laws, the employee is entitle to the higher of the two minimum wages.
Tax Year: 1st January – 31st December
Salary Calculation: gross to net
Working Hours: 40 hours/week (on average)
About the USA
The United States of America is a country of 50 states. It has the world’s largest consumer market and multiple free trade agreements and tax treaties with many countries. Known for always being welcoming to new business because of it is very appealing to businesses to expand their operations there. The workforce has a robust and diverse talent and is seen to be one of the most productive and innovative in the world.
The USA may be an open ground for new businesses, but it is still essential to stay compliant with their legislation and taxes. Our US Payroll and HR experts will ensure your business is compliant with US legislations and offer a service which is accurate and efficient.
Ready to Benefit from USA HR & Payroll Experts?
The American System
The U.S. Social Security system consists of 3 branches:
- Old age and death (survivors)
- Disability benefits
- Medicare (health care for the elderly and disabled)
These risks (except for accidents at work, health insurance and unemployment) are managed by the Social Security Administration (SSA).
Accidents at work and unemployment insurance are administered at the state level under the control of the Department of Labor (DOL). Contribution rates and benefits amounts vary from state to state. Companies have to provide Workmans Comp Insurance to cover their employees at work.
Social Contributions in the United States
Employers and employees in the United States need to pay both federal and state taxes.
Contributions for Salaried Workers as of January 1, 2021 |
||||
| Risks | Employer | Employee | Annual ceiling in US$ | |
| Federal Taxes | ||||
| Social Security (part of FICA) (1) | 6,20% | 6,20% | 142 800 | |
| Medicare (part of FICA) (1) | 1,45% | 1,45% (2) | On the total salary | |
| Federal Unemployment Tax Act (FUTA) | 6% (3) | – | – | |
| State Taxes | ||||
| Accidents at work | The amount of the contribution varies by risk and by state. | – | On the total salary | |
| State Unemployment Tax Act (SUTA) / State Unemployment Insurance (SUI) | Varies by state | – | – | |
(1) FICA stands for Federal Insurance Contribution Act.
(2) Individuals with incomes over $200,000 ($250,000 for married couples) pay an additional 0,9% Medicare contribution.
(3) The Federal Unemployment Tax Act is a contribution paid once a year to the federal government.
The amount of taxes due for Social Security and Medicare are set at the federal level.
Unemployment insurance is set by the federal government and administered by the states which set specific rules regarding the contribution rates, the amount of benefits and the lengths of time for which benefits are paid. The program is almost entirely funded by the taxes paid by employers. Only three states (Alaska, New Jersey and Pennsylvania) collect taxes from the employees.
In addition, a Federal Unemployment Tax Act is required once a year. The percentage is based on the first $7.000 paid to the employee by the employer. The minimum tax rate is 6%.
Collection
The Internal Revenue Service (IRS) is the federal tax collection agency.
Each state has their own department of revenue to collect state taxes.
Taxes in the United States
The Tax System
The US tax system is set up at both the federal and state level. Federal and state taxes are entirely separate and are governed by their own authorities. The federal government does not interfere with state legislation and taxation.
Each state has its own separate tax system. Within a state, several jurisdictions may also levy taxes. Local taxes are generally used to fund local programs such as education, parks and community programs.
Income Tax Withholding
Federal Income Tax
For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things:
- The amount you earn.
- The information you give your employer on Form W–4 (Form W-4 is a document issued by the employer on the first day at the company. This document is sent to the IRS to verify the employee’s tax status and to determine the amount to be deducted for each tax).
State Income Tax
Each state has its specific withholding form. State also collect income tax.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the USA.
Our Payroll and HR services in the USA
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in the USA
HR & Payroll in the USA
Good to know
Local Currency: United States Dollar (USD)
Minimum Salary: The federal minimum wage for covered nonexempt employees is $7.25 per hour (source : U.S. Department of Labor).
Many states have also minimum wage laws (see the interactive map on the U.S. government portal). When an employee is subject to both the state and federal minimum wage laws, the employee is entitle to the higher of the two minimum wages.
Tax Year: 1st January – 31st December
Salary Calculation: gross to net
Working Hours: 40 hours/week (on average)
Ready to Benefit from USA HR & Payroll Experts?
About the USA
The United States of America is a country of 50 states. It has the world’s largest consumer market and multiple free trade agreements and tax treaties with many countries. Known for always being welcoming to new business because of this it is very appealing to businesses to expand their operations there. The workforce has a robust and diverse talent and is seen to be one of the most productive and innovative in the world.
The USA may be an open ground for new businesses, but it is still essential to stay compliant with their legislation and taxes. Our US Payroll and HR experts will ensure your business is compliant with US legislations and offer a service which is accurate and efficient.
The American System
The U.S. Social Security system consists of 3 branches:
- Old age and death (survivors)
- Disability benefits
- Medicare (health care for the elderly and disabled)
These risks (except for accidents at work, health insurance and unemployment) are managed by the Social Security Administration (SSA).
Accidents at work and unemployment insurance are administered at the state level under the control of the Department of Labor (DOL). Contribution rates and benefits amounts vary from state to state. Companies have to provide Workmans Comp Insurance to cover their employees at work.
Social Contributions in the USA
Employers and employees in the United States need to pay both federal and state taxes.
Contributions for Salaried Workers as of January 1, 2021 |
||||
| Risks | Employer | Employee | Annual ceiling in US$ | |
| Federal Taxes | ||||
| Social Security (part of FICA) (1) | 6,20% | 6,20% | 142 800 | |
| Medicare (part of FICA) (1) | 1,45% | 1,45% (2) | On the total salary | |
| Federal Unemployment Tax Act (FUTA) | 6% (3) | – | – | |
| State Taxes | ||||
| Accidents at work | The amount of the contribution varies by risk and by state. | – | On the total salary | |
| State Unemployment Tax Act (SUTA) / State Unemployment Insurance (SUI) | Varies by state | – | – | |
(1) FICA stands for Federal Insurance Contribution Act.
(2) Individuals with incomes over $200,000 ($250,000 for married couples) pay an additional 0,9% Medicare contribution.
(3) The Federal Unemployment Tax Act is a contribution paid once a year to the federal government.
The amount of taxes due for Social Security and Medicare are set at the federal level.
Unemployment insurance is set by the federal government and administered by the states which set specific rules regarding the contribution rates, the amount of benefits and the lengths of time for which benefits are paid. The program is almost entirely funded by the taxes paid by employers. Only three states (Alaska, New Jersey and Pennsylvania) collect taxes from the employees.
In addition, a Federal Unemployment Tax Act is required once a year. The percentage is based on the first $7.000 paid to the employee by the employer. The minimum tax rate is 6%.
Collection
The Internal Revenue Service (IRS) is the federal tax collection agency.
Each state has their own department of revenue to collect state taxes.
Taxes in the USA
The Tax System
The US tax system is set up at both the federal and state level. Federal and state taxes are entirely separate and are governed by their own authorities. The federal government does not interfere with state legislation and taxation.
Each state has its own separate tax system. Within a state, several jurisdictions may also levy taxes. Local taxes are generally used to fund local programs such as education, parks and community programs.
Income Tax Withholding
Federal Income Tax
For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things:
- The amount you earn.
- The information you give your employer on Form W–4 (Form W-4 is a document issued by the employer on the first day at the company. This document is sent to the IRS to verify the employee’s tax status and to determine the amount to be deducted for each tax).
State Income Tax
Each state has its specific withholding form. State also collect income tax.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the United States.
Our Payroll and HR services in the USA
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: United States Dollar (USD)
Minimum Salary: The federal minimum wage for covered nonexempt employees is $7.25 per hour (source : U.S. Department of Labor).
Many states have also minimum wage laws (see the interactive map on the U.S. government portal). When an employee is subject to both the state and federal minimum wage laws, the employee is entitle to the higher of the two minimum wages.
Tax Year: 1st January – 31st December
Salary Calculation: gross to net
Working Hours: 40 hours/week (on average)
Ready to Benefit from USA HR & Payroll Experts?
About the USA
The United States of America is a country of 50 states. It has the world’s largest consumer market and multiple free trade agreements and tax treaties with many countries. Known for always being welcoming to new business because of this it is very appealing to businesses to expand their operations there. The workforce has a robust and diverse talent and is seen to be one of the most productive and innovative in the world.
The USA may be an open ground for new businesses, but it is still essential to stay compliant with their legislation and taxes. Our US Payroll and HR experts will ensure your business is compliant with US legislations and offer a service which is accurate and efficient.
The American System
The U.S. Social Security system consists of 3 branches:
- Old age and death (survivors)
- Disability benefits
- Medicare (health care for the elderly and disabled)
These risks (except for accidents at work, health insurance and unemployment) are managed by the Social Security Administration (SSA).
Accidents at work and unemployment insurance are administered at the state level under the control of the Department of Labor (DOL). Contribution rates and benefits amounts vary from state to state. Companies have to provide Workmans Comp Insurance to cover their employees at work.
Social Contributions in the USA
Employers and employees in the United States need to pay both federal and state taxes.
Contributions for Salaried Workers as of January 1, 2021 |
||||
| Risks | Employer | Employee | Annual ceiling in US$ | |
| Federal Taxes | ||||
| Social Security (part of FICA) (1) | 6,20% | 6,20% | 142 800 | |
| Medicare (part of FICA) (1) | 1,45% | 1,45% (2) | On the total salary | |
| Federal Unemployment Tax Act (FUTA) | 6% (3) | – | – | |
| State Taxes | ||||
| Accidents at work | The amount of the contribution varies by risk and by state. | – | On the total salary | |
| State Unemployment Tax Act (SUTA) / State Unemployment Insurance (SUI) | Varies by state | – | – | |
(1) FICA stands for Federal Insurance Contribution Act.
(2) Individuals with incomes over $200,000 ($250,000 for married couples) pay an additional 0,9% Medicare contribution.
(3) The Federal Unemployment Tax Act is a contribution paid once a year to the federal government.
The amount of taxes due for Social Security and Medicare are set at the federal level.
Unemployment insurance is set by the federal government and administered by the states which set specific rules regarding the contribution rates, the amount of benefits and the lengths of time for which benefits are paid. The program is almost entirely funded by the taxes paid by employers. Only three states (Alaska, New Jersey and Pennsylvania) collect taxes from the employees.
In addition, a Federal Unemployment Tax Act is required once a year. The percentage is based on the first $7.000 paid to the employee by the employer. The minimum tax rate is 6%.
Collection
The Internal Revenue Service (IRS) is the federal tax collection agency.
Each state has their own department of revenue to collect state taxes.
Taxes in the USA
The Tax System
The US tax system is set up at both the federal and state level. Federal and state taxes are entirely separate and are governed by their own authorities. The federal government does not interfere with state legislation and taxation.
Each state has its own separate tax system. Within a state, several jurisdictions may also levy taxes. Local taxes are generally used to fund local programs such as education, parks and community programs.
Income Tax Withholding
Federal Income Tax
For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things:
- The amount you earn.
- The information you give your employer on Form W–4 (Form W-4 is a document issued by the employer on the first day at the company. This document is sent to the IRS to verify the employee’s tax status and to determine the amount to be deducted for each tax).
State Income Tax
Each state has its specific withholding form. State also collect income tax.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the USA.
Our Payroll and HR services in the USA
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure