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United States – New York

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

United States – New York
Everything you need to know about payroll, benefits & hiring top talent in United States – New York

Currency

United States Dollar (USD)

Salary payment frequency

Bi-monthly

Capital

Albany

Time Zone

GMT - 4:00

Official Languages

English

Is English spoken?

Yes
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Quick Links

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Introduction

General Overview & Economic Facts
  • The United States of America commonly known as the United States or America is a country located in North America. The United States consists of 50 states, a federal district 5 major unincorporated entities, 326 Indian reservations and some minor possessions
  • New York is state located in the East of the United States. It has a population of approximately 20.2 million and spans an area of 141,300 km2 (54,556 mi2)
  • The United States has the 2nd largest economy by PPP and the 1st largest economy by nominal GDP
  • It ranks fairly high on the Human Development Index with a ranking of 17 (2019)
Why Employ In United States – New York?
  • The main exports include computers, almonds, diamonds and agricultural products
  • 12.91% of the population is between the ages of 15 and 24 years, with 38.92% of the population being between the ages of 25 and 54. The United States has a more mature demographic with the average age being 38 years old
Overview Of The Labour Law
  • The United States Labour Law sets the rights and duties for employees, labour unions and employers in the United States. The basic goals of the labour law are to ensure there is no inequality of bargaining power between employees and employers. The laws further assist in eliminating discrimination and promoting equality at work.
  • Employees in the United States have the right to join a trade union and the right to join a trade union without facing discriminatory labour practices. Contracts of employment can always improve the statutory minimum rights employees are entitled to but cannot diminish them.
  • New York is an “employment-at-will” state which means that either the employee or employer can terminate the employment agreement at any time unless there is a specific law preventing this form occurring.
Fun Country Facts
  • Oysters were so popular in New York in the 19th century that the shells were used to pave Pearl Street.
  • Times Square, originally called Longacre Square, is named after the New York Times when they moved there in 1904
  • Since the 1960s, the price of a slice of pizza in New York City has been approximately the same price as a subway ride, generating the ‘Pizza Principle’ among economists.
Why Use Playroll Services For United States – New York?
  • Employing in the United States requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in the United States
  • With Payroll’s Employer of Record services, your team will be employed by our established legal entities in each country
  • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
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Employer Contributions

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

State Unemployment Insurance (SUI)
Calculated on a maximum annual salary of USD 9,000.00

Calculated on a maximum annual salary of USD 11,800.00

Experienced Employers – Lowest Normal Rate
1.50 %

Experienced Employers – Highest Normal Rate
8.90 %

New Employer Normal Rate
3.40 %

Experienced Employers – Lowest Subsidiary Rate
0.525 %

Experienced Employers – Highest Subsidiary Rate
0.925 %

New Employer Subsidiary Rate
0.625 %

All Employers – Reemployment Service Fund Contribution rate
0.075 %

Federal Insurance Contributions Act (FICA)

Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI)
Calculated on gross monthly remuneration up to a maximum of USD 147,000.00 per year

6.20%

Medicare
Calculated on gross monthly remuneration

1.45%

Disability Insurance

Varies by provider

Optional. Mandatory for certain industries

Workers' Compensation Insurance

Varies by provider

New York Metropolitan Commuter Transportation Mobility Tax

Payroll expenses per quarter

USD 312,500.00 – 375,000.00
0.11 %

USD 375,001.00 – 437,500.00
0.23 %

USD 437,501.00 or more
0.34 %

Federal Unemployment Tax (FUTA)

Calculated on gross monthly remuneration up to a maximum of USD 7,000 per year

6.00%

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Employee Contributions

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

Federal Insurance Contributions Act (FICA)

Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI)
Calculated on gross monthly remuneration up to a maximum of USD 147,000.00 per year

6.20%

Medicare
Calculated on gross monthly remuneration

Earning between USD 0.00 and USD 200,000.00 per annum
1.45%

Earning USD 200,001.00 or more
2.35%

New York Paid Family Leave Insurance

0.511 %

New York State Disability Insurance (SDI)

Maximum contribution of USD 0.60 per week

0.50%

New York State Income Tax

Calculated on gross monthly remuneration

Single Taxpayers or Married Taxpayers Filing Separately

Income bracket per annum

USD 0.00 – USD 8,500.00
4.00%

USD 8,501.00 – USD 11,700.00
USD 340 + 4.5% of the amount over USD 8,500.00

USD 11,701.00 – USD 13,900.00
USD 484 + 5.25% of the amount over USD11,700.00

USD 13,901.00 – USD 21,400.00
USD 600 + 5.9% of the amount over USD13,900.00

USD 21,401.00 – USD 80,650.00
USD 1,402.00 + 5.97% of the amount over USD 21,400.0

USD 80,651.00 – USD 215,400.00
USD4579.00 + 6.33% of the amount over USD80,651.00

USD 215,401.00 – USD 1,077,550.00
USD13,109.00 + 6.85% of the amount over USD 215,401.00

USD 1,077,550.00 – USD 5,000,000.00
US D72,166.00 + 9.65% of the amount over USD 1,077,550.00

USD 5,000,001.00 – USD 25,000,000.00
USD 450,683.00 + 10.30% of the amount over USD 5,000,001.00

USD 25,000,001.00 or more
USD 2,510,683.00 + 10.90% of the amount over USD 25,000,000.00

Married Taxpayers Filing Jointly or Qualifying Widow(er)

Income bracket per annum
Calculated on gross monthly remuneration

USD 0.00 – 17,150.00
4.00%

USD 17,151.00 – USD 23,600.00
USD 686 + 4.50% of the amount over USD 17,150.00

USD 23,601.00 – USD 27,900.00
USD976 + 5.25% of the amount over USD 23,600.00

USD 27,901.00 – USD 43,000.00
USD1202.00 + 5.90% of the amount over 27,900.00

USD 43,001.00 – USD 161,550.00
USD 2093.00 + 5.97% of the amount over USD 43,000.00

USD 161,551.00 – USD 323,200.00
USD 9170.00 + 6.33% of the amount over USD 161,550.00

USD 323,201.00 – USD 2,155,350.00
USD 19,403.00 + 6.85% of the amount over USD323,200.00

USD 2,155,351.00 – USD 5,000,000.00
USD 144,905.00 + 9.65% of the amount over USD2,155,350.00

USD 5,000,001.00 – USD 25,000,000.00
USD 419,414.00 + 10.30% of the amount over USD 5,000,000.00

USD 25,000,001.00 or more
USD 2,479,414.00 + 10.90% of the amount over USD 25,000,000.00

Head of Household Taxpayers

Income bracket per annum

USD 0.00 – USD 12,800.00
4.00%

USD 12,801.00 – USD 17,650.00
USD 512.00 + 4.50% of the amount over USD 12,800.00

USD 17,651.00 – USD 20,900.00
USD 730 + 5.25% of the amount over USD 17,650.00

USD 20,901.00 – USD 32,200.00
USD 901 + 5.90% of the amount over USD 20,900.00

USD 32,201.00 – USD 107,650.00
USD1,568.00 + 5.97% of the amount over USD 32,200.00

USD 107,651.00 – USD 269,300.00
USD 6,072.00 + 6.33% of the amount over USD 107,650.00

USD 269,301.00 – USD 1,616,450.00
USD 16,304.00 + 6.85% of the amount over USD 269,300.00

USD 1,616,451.00 – USD 5,000,000.00
USD 108,584.00 + 9.65% of the amount over USD 1,616,450.00

USD 5,000,001.00 – USD 25,000,000.00
USD 435,097.00 + 10.30% of the amount over USD 5,000,000.00

USD 25,000,001.00 or more
USD 2,495,097.00 + 10.90% of the amount over USD 25,000,000.00

Federal Income Tax

Single Taxpayers or Married Taxpayers Filing Separately

Income bracket per annum

0 – 10,275
10.00%

10,275 – 41,775
12.00%

41,775 – 89,075
22.00%

89,075 – 170,050
24.00%

170,050 – 215,950
32.00%

215,950 – 539,900
35.00%

539,900 and above
39.00%

Married Taxpayers Filing Jointly

Income bracket per annum

0 – 20,550
10.00%

20,550 – 83,550
12.00%

83,550 – 178,150
22.00%

178,150 – 340,100
24.00%

340,100 – 431,900
32.00%

431,900 – 647,850
35.00%

647,850 and more
37.00%

Head of Household Taxpayers

Income bracket per annum

0 – 14,650
10.00%

14,650 – 55,900
12.00%

55,900 – 89,050
22.00%

170,050 – 215,950
24.00%

170,050 – 215,950
32.00%

215,950 – 539,900
35.00%

539,900 and more
37.00%

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Employment Terms

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General

Minimum Wage
  • New York City and Long Island- USD 15.00 per hour
  • Remainder of New York- USD 13.20
Working Hours
  • No maximum number of working hours per day
  • Minimum meal interval of 30 minutes
  • Typical working hours are 09h00 to 17h00 Monday to Friday
Overtime
  • There are no maximum overtime hours in New York. Employers in New York must pay employees 1.5 times the established wage rate for any hours over 40 worked in a week
Notice Period
  • As an ‘employment-at-will state,’ New York employers are not required to give advance notice to employees upon termination
Severance Pay
  • Employers are not legally required to offer their employees a severance package.
  • Employees must be paid all wage due to them at the time of termination
Probation Period
  • There is no mandatory probation period
  • Typical probation periods are 6 months to a year
Bonus
  • Employers are not legally required to offer their employees a bonus
Public Holidays

Public holidays 2022

  • January 1st – New Year’s Day
  • January 17th – Martin Luther King Jr. Birthday
  • February 12th – Lincoln’s Birthday
  • February 21st – President’s Day
  • May 30th – Memorial Day
  • June 19th – Juneteenth National Independence Day
  • July 4th – Independence Day
  • September 5th – Labour Day
  • October 10th – Columbus Day
  • November 11th – Veterans Day
  • November 24th – Thanksgiving Day
  • December 25th – Christmas Day
  • December 26th – Christmas Holiday
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Leave

Paid Leave / Vacation Days
  • Paid time off is not mandatory in New York
Sick Leave
  • Paid leave
  • Paid by employer
  • 1 hour for every 30 hours worked
Family and Medical Leave Act

Unpaid leave

12 weeks

An employee is entitled to FMLA leave in the following circumstances:

  • Birth and care of the employee’s child, or placement for adoption or foster care of a child with the employee
  • Care of an immediate family member (spouse, child, parent) who has a serious health condition or
  • Care of the employee’s own serious health condition
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