Labor Laws in the US
- Annual Leave: 10 - 20 days
- Maternity Leave: 12 weeks unpaid
- Public Holidays: 11
- Workweek: 40 hours per week.
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Capital:
Washington, D.C.
Language:
English
Currency:
United States Dollar
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- 1 Hiring in the United States
- 02 Labor Laws in the US
- 15 Salary and Wages in the US
- 05 Income Tax in the United States
- Social_Security_inthe_United_States Social Security in the United States
- Deductible_Expenses_in_Brazil Deductible Expenses in the US
- 08 US Immigration
- 09 Value Added Tax (VAT) in the US
- 11 Mandatory Benefits in the US
- 12 US Payroll
- 13 Payroll Accrual in the US
- 14 Accrued Benefits in the US
- 15 Why use Global Expansion to hire in the U.S.
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Income Tax in the United States
The United States has progressive income tax rates of 10% to 37%.
Value Added Tax (VAT) in the US
The US does not have federal VAT.
Social Security in the United States
In the United States, employers and employees each contribute 6.2% of the employee's wages towards Social Security, for a total combined contribution of 12.4%.
Social Security Tax Rates
- Employees pay 6.2% of their wages up to the Social Security wage base.
- Employers pay a matching 6.2% for each employee.
- Self-employed individuals pay the full 12.4% as both the employer and employee.
Social Security Wage Base
- The Social Security wage base is the maximum amount of earnings subject to Social Security tax.
- For 2024, the Social Security wage base is $168,600.
- Earnings above this amount are not subject to Social Security tax.
- Medicare hospital insurance taxes are withheld on 1.45% of all wages.
Work Visas in the USA
Here are the main work visas available in the United States:
H-1B Visa (Specialty Occupations)
- Purpose: For professionals in specialized fields such as IT, engineering, finance, and medicine.
- Eligibility: Requires a job offer from a U.S. employer and at least a bachelor’s degree or equivalent in the related field.
- Duration: Initially 3 years, extendable up to 6 years.
- Cap: Annual limit (usually 65,000 visas, with an additional 20,000 for advanced degree holders).
L-1 Visa (Intra-Company Transferee)
- Purpose: For employees of international companies being transferred to a U.S. office.
- Eligibility: Employees must have worked for the foreign company for at least 1 year in the past 3 years in a managerial, executive, or specialized knowledge role.
- Duration: L-1A for executives/managers (up to 7 years); L-1B for specialized knowledge workers (up to 5 years).
O-1 Visa (Individuals with Extraordinary Ability)
- Purpose: For individuals with extraordinary ability in fields such as science, arts, education, business, or athletics.
- Eligibility: Requires evidence of a high level of achievement, such as awards, publications, or recognition in the field.
- Duration: Up to 3 years, with extensions in 1-year increments.
Hire American Talent with Global Expansion
Setting up a company in the USA can be expensive and complex. Global Expansion simplifies your entry into this market.
We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.
Our USA Employer of Record (EOR) solution lets you focus on your business growth.
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