Country Payroll Guide USA – New York

Key Facts

Capital

Albany

Date format

mm/dd/yyyy

Currency

United States Dollar (USD)

VAT

the standard rate is 4.50%

Contributions

Minimum Wage

Minimum Wage

• New York City – $15.00 per hour.
• Long Island and Westchester – $14.00 per hour.
• Rest of the state-  $12.50 per hour. However, minimum wage will be different for employees who receive tips and work in the restaurant industry.

Payroll

Payroll Cycle

Weekly, Bi-Weekly, Monthly, Bi-Monthly

13th Salary

There are no statutory laws on 13th salary.

Income Tax

Employee Income Tax (1) (Federal)

$0 - $9,950 = 10%

Employee Income Tax (2) (Federal)

$9,876 - $40,125 = 12%

Employee Income Tax (3) (Federal)

$40,126 - $85,525 = 22%

Employee Income Tax (4) (Federal)

$85,526 - $163,300 = 24%

Employee Income Tax (5) (Federal)

$163,301 - $207,350 = 32%

Employee Income Tax (6)

$207,350 - $518,400 = 35%

Employee Income Tax (7)

Over $518,400 = 37%

Employee Income Tax (State)

Employee Income Tax (State) (1)

Up to $8,500 = 4%

Employee Income Tax (State) (2)

$8,500 - $11,700 = 4.50%

Employee Income Tax (State) (3)

$11,700 – $13,900 = 5.25%

Employee Income Tax (State) (4)

$13,900 – $21,400 = 5.90%

Employee Income Tax (State) (5)

$21,400 – $80,650 = 5.97%

Employee Income Tax (State) (6)

$80,650 – $215,400 = 6.33%

Employee Income Tax (State) (7)

$215,400 – $1,077,550 = 6.85%

Employee Income Tax (State) (8)

$1,077,550 – $5,000,000 = 9.65%

Employee Income Tax (State) (9)

$5,000,000 - $25,000,000 =10.30%

Employee Income Tax (State) (10)

Over $25,000,000 = 10.90%

Employee Income Tax (State) (11)

3.078 – 3.876%

Working Hours

General Working Hours

40 hours per week, eight hours per day.

Overtime

It is required to pay employees at a rate of 150% of their regular payment for all hours worked exceeding their 40 weekly hours, unless the employee is exempt. This is in accordance with the Federal Labor Standard Act.

Leave

Paid Time Off

There is no legislation relating to paid time off.

Public Holidays

10 public holidays.

Sick Days

Sick Leave in New York depends on the specific size of each company:

• Less than four employees with a net annual income of less than 1 million USD = 40 hours of unpaid sick leave per year
• Less than four employees with a net annual income of over 1 million USD = 40 hours of paid sick leave per year
• 5-99 employees = 40 hours of paid leave per year
• Over 100 employees = 56 hours of paid leave per year

Maternity Leave

The Family Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons. Employers are required to maintain the employees’ health benefits during their leave and keep their job open.

Paternity Leave

The Family Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons. Employers are required to maintain the employees’ health benefits during their leave and keep their job open.

Parental Leave

Six weeks of unpaid parental leave, taken with the first year of the child’s birth.

Termination

Termination Process

New York follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason.

Notice Period

Two weeks.

Severance Pay

There is no legislation relating to severance pay.

Probation Period

Six months.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.