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Employee benefits
in USA.

SALARY PAYMENT IN United States Dollar (USD, $)

CONTRACT LANGUAGES English

PAYROLL TAX Varies per state

PAYROLL CYCLE Bi-weekly or weekly 

TIME TO HIRE 12 hours

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United States

Healthcare in USA

At the federal level, the basic public health infrastructure is funded through Medicare, the United States national health insurance program. Under the FICA, employers and employees pay a mandatory payroll tax of 3.5% (1.45% each) to Medicare. There is an additional Medicare contribution of 0.9% for employees who earn more than $200,000.

Employer-sponsored benefits usually include private healthcare insurance as part of employee benefits packages. There’s no legal requirement for employers to offer private health insurance to their employees, but almost all do. Employee benefits packages vary between employers, roles and circumstances of the employee; some employers cover 100% of the costs of health insurance premiums whilst other split the cost with the employee. In addition, there are various financial assistance programs available to help individuals with medical expenses.  They provide an essential safety net, ensuring that healthcare remains accessible and affordable for a wider range of the population.

Pensions in USA

The state pension fund in the USA is funded through the FICA, a mandatory payroll tax that employers and employees contribute to. The contribution totals 12.4% and is split equally between employer and employee, i.e. 6.2% each. Contributions are only paid on the first $160,200 of income. 

Retirement age in the US varies depending on the year of birth. Those born before 1960 receive retirement benefits from the age of 65, and those born after 1960 can begin receiving retirement benefits at 67. 

Disability in USA

Disability insurance is funded through the FICA as part of the Social Security or Old-Age, Survivors, and Disability Insurance (OASDI) program. 

People who cannot work because of illness or injury may be eligible to claim disability benefits through two federal social security programs: Social Security Disability Insurance (SSDI) and Supplemental Security Insurance (SSI).

Unemployment in USA

Unemployment benefits are funded by the Federal Unemployment Tax Act (FUTA). Only employers pay FUTA tax at a rate of 6% on the first $7,000 of an employee’s wages.

Employers are entitled to a credit reduction against their FUTA tax obligations based on the amounts they pay to state unemployment funds – the full credit reduction amounts to 5.6%, which brings the FUTA tax contribution down to a minimum of 0.6%.

Hiring in USA, Made Easy

Your business can easily hire employees in USA without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Mandatory employee benefits include employer contributions to the USA’s social security system otherwise known as the OASDI program. The US’s social security system is an insurance scheme that provides for old-age, survivors, and disabilities. 

At Horizons we offer a number of employer-sponsored benefits to US-based employees. These include private medical insurance via an affordable health plan and private retirement solutions plans.  

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