The current Federal Minimum Wage for exempt/salaried workers is $35,568. In five states (California, Colorado, Maine, New York, and Washington), the minimum salary wage exceeds the Federal minimum wage.
In the USA, mandatory benefits include Social Security, Medicare, Federal and State unemployment insurance, workers' compensation insurance, and Private healthcare.
Under The Fair Labor Standards Act (FLSA), certain types of work and specific states require overtime pay. However, some roles consider overtime as part of the salary and are therefore exempted. Typically, standard working hours are around 40 hours per week, from Monday to Friday.
While there is no legal obligation for employers to provide bonuses to employees in the USA, many companies include annual or performance-based bonuses as part of their compensation package, which is subject to taxation as salary.
In the USA, employers typically process payroll twice a month, with most companies following this schedule:
1st payroll cycle (1st to 15th):
2nd payroll cycle (15th to last day):
The individual tax system in the USA is intricate. Federal individual tax rates are progressive and vary as shown below:
These rates apply to single employees with no partner or dependents. Additional factors such as household status and the number of children also play a role in determining individual tax rates, making the system more complex.
In the USA, an employee agreement should encompass various essential details, including the employee's name, address, job role, job description, start date, compensation, vacation entitlement, manager's information, place of work, benefits, and a termination clause. The contract must be drafted in English, and it can also be bilingual.
Employment at will is a prevailing concept, allowing both the employer and the employee to terminate the contract at any time. However, it is customary in the USA to provide a 2 weeks' notice before termination.
Severance pay is not mandated by statutory provisions in the USA.
Probation periods are not legally required due to the nature of at-will employment in the USA.