The Lyndon B. Johnson Space Center, a hub for space exploration and an astronaut training facility, is situated in Houston.
Payroll and Benefits Guide - United States - Texas
Fun Facts
The Cultural District in Fort Worth, Texas, is the largest urban cultural district in the world and is home to galleries, performance spaces, etc.
With over a million bats, Austin’s Congress Avenue Bridge is home to the largest urban bat colony in the world.
In terms of both population and land area, it is the second-largest state.
The largest rodeo in the world is The annual Houston Livestock Show and Rodeo.
In July 4, 1883, the first ever rodeo happened in Pecos, Texas.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| FICA Social Security (federal) | 6.20% |
| FICA Medicare (federal) | 1.45% |
| Additional tax on earnings over 200,000 USD | 0.90% |
Employer Payroll Tax
| Contribution Type | Rate |
| Unemployment Insurance (state) | 0.23% – 6.23% |
| FICA Social Security (federal) | 6.20% |
| The FUTA (Federal Unemployment Tax Act) | 0.60% – 6.00% |
| Unemployment- New Employer (state) | 2.70% |
| FICA Medicare (federal) | 1.45% |
Payroll
Payroll Cycle
In Texas, employees are paid either bi-weekly or monthly.
13th Salary
There are no laws requiring 13th salary.
Work Hours and Week
The average workweek consists of 40 hours, or 8 hours per day from Mondays to Fridays.
Overtime
The rate for overtime hours is 150% of the usual salary rate. If an employee is scheduled to work on weekends or off days, no extra compensation is needed
However, if an employer requests an employee to work on these days due to unexpected circumstances, overtime pay is paid at a rate equal to 150% of the regular compensation rate.
Leave
Paid Time Off
There are no state statutes requiring paid time off in Texas. Employers typically choose whether to provide paid or unpaid vacation time, though. This must be specified in the collective bargaining agreements and adhere to employment legislation.
Public Holidays
There are 16 public holidays in Texas.
Sick Days
If an employee has worked for their employer for at least a year, put in at least 1,250 hours in the previous year, and worked at a location where the company employs 50 or more people within 75 miles, they are eligible for FMLA.
The FMLA grants some employees up to 12 weeks of unpaid, job-protected leave annually for specific family and medical reasons (maternity leave, serious illnesses, or if the employee has to care for a spouse or child).
Maternity Leave
Both leaves are under FMLA-granted sick leave. They are given twelve working weeks of leave during the first year of the baby’s life.
Paternity Leave
Both leaves are under FMLA-granted sick leave. They are given twelve working weeks of leave during the first year of the baby’s life.
Other Leave
Employees are entitled to unpaid leave when they are summoned to court either as a juror or a witness given they can provide summons to their employer.
All employees who are registered voters must be given paid leave to participate in any local or national election.
An employee may also ask for leave to attend a political convention.
Termination
Termination Process
Except in mass dismissals or as specified in an employment contract or collective bargaining agreement, U.S. law does not need a formal notice period to end an employment relationship; employment is “at will.”
If there is no illegal or significant discri-mination on the basis of a protected class, either the employer or the emplo-yee may terminate the employment relationship without providing notice or a reason.
Notice Period
Most employees work “at-will,” which means that any party may end the employment arrangement at any time and without cause. Although there isn’t a formal notice period, the standard is two weeks.
Employers are required by law to give affected employees 60 days’ notice in situations involving mass dismissals.
Severance Pay
Employers are not compelled to provide severance pay unless specifically stated otherwise in an employment contract or collective bargaining agreement. If an employer offers severance, the clauses must be included in the employment contract and both parties must consent to them.
Probation Period
Probation Period
Regarding probationary terms, the law contains no restrictions. However, it is standard practice for employers to schedule performance reviews following a 90-day first period of employment.
Immigration
No foreign nationals are allowed to work in the US without either a work visa or permanent resident status.
The potential employee must receive a visa stamp from a US embassy or consulate when the petition is authorized (Canadian citizens are excluded from this requirement). An employer must petition the U.S. government in order to obtain a temporary work visa. Immigration and Citizenship Services (USCIS). The visa application must include an authorized petition.
All companies are required to confirm that every person they hire is qualified to work in the United States.
VAT
Texas has a state tax of 6.25%, but cities and counties may add up to an additional 2.00% if deemed necessary.