Country Payroll Guide USA – New York

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Key Facts

Capital
Albany
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 4.50%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 1.3 to 9.6%
Unemployment - New Employer (State)
Unemployment - New Employer (State) - 1.01%
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employment Cost
Total Employment Cost - up to 23.25%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 142,800 USD)
Total Employee Cost
Total Employee Cost - up to 14.55%

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.