13th month pay
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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End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

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Is there a 13th month pay in the United States?

At the time of writing (Q1, 2023), USA has no legislation relating to 13th-month pay. However, it is common in the United States to give performance-based or incentive bonuses.

How is the 13th month pay calculated in USA?

There is no 13th month salary offered in practice or as part of any American laws. For other bonuses received in the US, it is taxed in addition to income the month it is received by the employee.

When is the 13th month salary paid in the United States of America?

In the US, all bonuses are up to the discretion of the employer or stipulated in the employment agreement.

Does the 13th month salary amount to any extra payment by the employer?

Since virtually no bonuses are guaranteed in USA, any bonus would be an extra payment by the employer.

Is the 13th month salary taxable in USA?

All bonuses received in America are subject to taxes as income.

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

Is the 13th month pay required by law or standard in the United States?

No, there is no requirement for employers in the US to pay 13th month pay or any other bonuses. Some employers may choose to pay performance-based bonuses as a method of attracting and retaining top talent, but any bonus is up to the discretion of the employer.

Are there more than 13th months of pay in the US?

No. In the US, there are only 12 months of pay guaranteed in an employment agreement. Any additional amount is considered bonus and is taxed as income.

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"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)