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United States – Texas

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

Currency

United States Dollar (USD)

Salary payment frequency

Bi-monthly

Capital

Austin

Time Zone

GMT - 5:00

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
  • Texas is a state in South Central United States. It has a population of approximately 29.1 million and spans an area of 695,662 km2 (268,596 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 17th (2019)
Why Employ In United States – Texas?
  • The main exports include oil, petroleum and agricultural products
  • 14.00% of the population is between the ages of 15 and 24 years, with 40.60% 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.
  • Texas 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
  • Everyone in the town of DISH, Texas, received free basic television and DVRs for ten years from DISH Network in exchange for renaming their town to DISH from Clark
  • Texas was an independent country from 1836-1845
  • In Texas, you must give oral or written notice 24 hours in advance of the crime.
Why Use Playroll Services For United States – Texas?
  • 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

Experienced Employers – Lowest Normal Rate
0.31 %

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%

Workers' Compensation Insurance

Varies by provider

Optional. Mandatory for certain industries.

Federal Unemployment Tax (FUTA)

Calculated on gross monthly remuneration up to a maximum of USD 7,000.00 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%

Texas State Income Tax
Calculated on gross monthly remuneration

Single Taxpayers or Married Taxpayers Filing Separately

Income bracket per annum

0.00% – USD 10,275.00
10.00%

USD 10,275.00 – USD 41,775.00
12.00%

USD 41,775.00 – USD 89,075.00
22.00%

USD 89,075.00 – USD 170,050.00
24.00%

USD 170,050.00 – USD 215,950.00
32.00%

USD 215,950.00 – USD 539,900.00
35.00%

USD 539,900.00 or more
37.00%

Married Taxpayers Filing Jointly

Income bracket per annum

USD 0.00 – USD 20,550.00
10.00%

USD 20,550.00 – USD 83,550.00
12.00%

USD 83,550.00 – USD 178,150.00
22.00%

USD 178,150.00 – USD 340,100.00
24.00%

USD 340,100.00 – USD 431,900.00
32.00%

USD 431,900.00 – USD 647,850.00
35.00%

USD 647,850.00 or more
37.00%

Head of Household Taxpayers

Income bracket per annum

USD 0.00 – USD 14,650.00
10.00%

USD 14,650.00 – USD 55,900.00
12.00%

USD 55,900.00 – USD 89,050.00
22.00%

USD 89,050.00 – USD 170,050
24.00%

USD 170,050.00 – USD 215,950.00
32.00%

USD 215,950.00 – USD 539,900.00
35.00%

USD 539,900 or more
37.00%

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
  • USD 7.25 per hour
Working Hours
  • Maximum of 40 hours per week
  • There is no statutory meal interval. It is common to provide a rest break of 20 minutes
  • Typical working hours are 09h00 to 17h00 Monday to Friday
Overtime
  • There are no maximum overtime hours in Texas. Employers in Texas 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,’ Texas 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
  • Employers are not legally required to offer their employees a severance package
Bonus
  • There is no statutory bonus
  • It is common for employees to receive a 13th-month bonus at the end of December
  • Collective Bargaining Agreements may mandate a bonus 
Public Holidays

Public holidays 2022

  • January 1st – New Year’s Day
  • January 17th – Martin Luther King Jr. Birthday
  • January 19th – Confederate Heroes Day
  • February 21st – President’s Day
  • March 2nd – Texas Independence Day
  • March 31st – César Chávez Day
  • April 15th – Good Friday
  • April 21st – San Jacinto Day
  • May 30th – Memorial Day
  • June 19th – Juneteenth National Independence Day
  • July 4th – Independence Day
  • August 27th – Lyndon B Johnson Day
  • September 5th – Labour Day
  • November 11th – Veterans Day
  • November 24th – Thanksgiving Day
  • November 25th – Thanksgiving Friday
  • December 24th – Christmas Eve
  • 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
  • There is no statutory sick leave. Employees are entitled to leave under the Family and Medical Leave Act
      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
      Start hiring in United States – Texas today!