返回
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
Hire and pay talents
with Horizons in
180+ countries
The USA has a social security system partly governed on a federal level, and partly governed on a state level. It covers healthcare, retirement benefits, disability and unemployment insurance. It is worth noting that coverage is not universal and the system is often criticised as not providing sufficient coverage.
The USA’s social security system, formally known as Old-Age, Survivors, and Disability Insurance or OASDI, covers issues relating to old-age (retirement), survivors (family & dependents) and disabilities (workplace injuries).
Social security is funded via payroll taxes collected under the Federal Insurance Contributions Act (FICA).
Employees contribute to the USA’s social security system through a payroll tax under the FICA.
Mandatory employee contributions to social security total 6.20% of the first $160,200 of wages paid.
Under the FICA, US employers make a mandatory contribution towards social security that totals 6.20% on the first $160,200 of each employee’s wages.
The mandatory contributions of employers in the USA are, on average, lower than social security contributions for employers in Canada.
In Canada, total employer contributions total ≈10% compared to ≈8% (including Medicare & Unemployment Insurance) for employers in the USA.
Your business can easily hire employees in the 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.
Under the Federal Insurance Contributions Act, employers contribute 6.20% on the first $160,200 of each employee’s wages to social security in the USA.
In the United States, social security is also known as the OASDI program, and covers for a range of situations including; old-age (retirement), survivors (family & dependents) and disabilities (workplace injuries).
