Country Payroll Guide USA – Tennessee

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Key Facts

Capital
Nashville
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 7%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 0.01% to 10.00% (Maximum taxable wages is 7,000 USD)
Unemployment - New Employer (State)
Unemployment - New Employer (State) - 2.7% (Maximum taxable wages is 7,000 USD)
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 23.65%

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% (Additional 0.9% tax on earnings over 200,00 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employee Cost
Total Employee Cost - 13.65%

Minimum Wage

Minimum Wage
The minimum wage in Tennessee is 7.25 USD per hour.

Payroll

Payroll Cycle
Monthly, Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Employee Income Tax (1) Single Filer (Federal)
$0 - $9,875 = 10%
Employee Income Tax (2) Single Filer (Federal)
$9,876 - $40,125 = 12%
Employee Income Tax (3) Single Filer (Federal)
$40,126 - $85,525 = 22%
Employee Income Tax (4)Single Filer (Federal)
$85,526 - $163,300 = 24%
Employee Income Tax (5) Single Filer (Federal)
$163,301 - $207,350 = 32%
Employee Income Tax (6) Single Filer (Federal)
$207,350 - $518,400 = 35%
Employee Income Tax (7) Single Filer (Federal)
Over $518,400 = 37%

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

11 public holidays.

Sick Days

There are no statutory laws on sick leave in Tennessee, however, an employer may be obligated to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child). Employers are required to maintain the employees’ health benefits during their leave and keep their job open.

Maternity Leave

Maternity leave falls under the FMLA.

Paternity Leave

Paternity leave falls under FMLA.

Parental Leave

Parental leave falls under FMLA.

Other Leave

Jury Duty Leave – Employees are entitled to paid jury duty leave, if they have been employed for at least six months. Voting leave – Employees are entitled to three hours of paid leave.

Termination

Termination Process

Tennessee 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

Notice for the employee and employer are not required.

Severance Pay

There is no legislation relating to severance pay.

Probation Period

12 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.