HR Software for United States

Leave Policy

Maternity Leave

In the United States, pregnancy is a specific criterion for protected unpaid leave under federal law, the Family and Medical Leave Act (FMLA). Under the FMLA, pregnant employees are entitled to 12 weeks of unpaid leave. This leave must be continuous unless the employer grants otherwise.

Employees are eligible for FMLA leave if:

They have worked for their employer for at least 12 months
Have worked at least 1,250 hours for their employer in the last 12 months
Work at a location where the employer employs 50 or more employees within a 75 mile radius

You can use the leave module in IceHrm to manage maternity leave in United States.

Paternity Leave

In the United States, there are no specific federal requirements for paternity other than parental leave under the Family and Medical Leave Act (FMLA).

Parental Leave

In the USA, parental leave is enshrined in law under the Family and Medical Leave Act (FMLA). One or both parents can take family leave within the first year after the adoption or birth of a child. Employees are entitled to 12 weeks of unpaid leave. This leave must be continuous unless the employer grants otherwise.

Employees are eligible for FMLA leave if:

They have worked for their employer for at least 12 months
Have worked at least 1,250 hours for their employer in the last 12 months
Work at a location where the employer employs 50 or more employees within a 75 mile radius

Sick Leave

In the US, sick leave falls under the Family and Medical Leave Act (FMLA) and only applies to serious illnesses. The FMLA provides an employee with up to 12 weeks of unpaid leave.

Employees are eligible for FMLA leave if:

Have been employed by their employer for at least 12 months
Have worked at least 1,250 hours for their employer in the last 12 months
Work at a location where the employer employs 50 or more employees within a 75 mile radius

To be considered a serious illness, either the employee or an immediate family member of the employee must suffer from an illness, injury, impairment, or physical or mental condition that includes the following

Inpatient treatment in a hospital, hospice or inpatient medical facility
Continuous treatment from a healthcare provider.

Pay & Tax

Minimum Wage Requirements

IceHrm’s corporate policy is that we only employ exempt or permanent employees. The federal minimum wage is currently $35,568 for exempt/paid employees. In 5 states the minimum wage is higher than the federal minimum wage. These states are California, Colorado, Maine, New York and Washington. Employees residing in these 5 states must have an annual salary that is at least as high as the state minimum wage. Employees residing in other states must have an annual salary at least equal to the federal minimum wage.

Individual Income Tax

The national (federal) minimum wage is $7.25 per hour or $1,160 per month. There are other minimum wage laws in individual states

Tax Rate	Single Filer	Married Filing Joint Return	Head of Household
10%	USD 0 – 11,600	USD 0 – 23,200	USD 0 – 16,550
12%	USD 11,601 – 47,150	USD 22,001 – 94,300	USD 16,551 -63,100
22%	USD 47,151 – 100,525	USD 94.301 – 201,050	USD 63,101 – 100,500
24%	USD 100,526 – 191,150	USD 191,151 – 243,725	USD 100,501 – 191,950
32%	USD 191,151 – 243,725	USD 383,901 – 487,450	USD 191,951 – 243,700
35%	USD 243,726 – 609,350	USD 487,451 – 731,200	USD 243,701 – 609,350
37%	USD 609,351 and up	USD 731,201 and up	USD 609,351 and up
Standard Deduction	USD 14,600	USD 29,200	USD 21,900

Payroll Cost

The cost to the employer is generally estimated at 9.50% to 12.50% (depending on the state) of the employee’s salary.

Social Security – 6.2% up to an annual maximum of $9,932.40
Health insurance – 1.45%
Federal unemployment – 0.60% up to an annual maximum of $42
State unemployment – 1%-4% with annual caps depending on the state
Workers’ compensation insurance – 0.25%-0.30%
Payroll Tax (California only) – 0.38%

These costs are estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.

Overtime pay is required both federally under the Fair Labor Standards Act (FLSA) and in certain states for certain jobs and functions. However, certain functions and types of work may be exempt from the overtime requirement. For these exempt activities. Overtime is considered included in salary.

IceHrm does not support positions that require the calculation of overtime (non-exempt).

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as mandatory or recommended steps for specific termination cases.

Employers must comply with all federal, state and city laws when firing an employee. Termination costs may also include the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), a federal law that allows employees to continue their health insurance while unemployed.

Notice Period

Employment at will means that either party can terminate the contract at any time. However, in the USA it is common practice to give 2 weeks notice.

Severance for Employees

There are no statutory severance pay regulations in the USA.

Statutory Time Off

Paid Time Off

While there is no federal regulation requiring vacation and holiday pay, IceHrm’s U.S. employees are entitled to at least 15 days of paid time off (PTO). This entitlement relates to vacation and sick leave.

Public Holidays

IceHrm adheres to 6 universally recognized holidays in the United States. There are also 5 federal holidays recognized by the Federal Reserve and employers have the choice of whether to offer these days off depending on what is best for the employee and the employer’s business needs.

IceHrm recognizes the following public holidays, which are generally recognized and on which most businesses other than retail and hospitality are closed:

New Year’s Day: January 1
Memorial Day: Last Monday in May
Independence Day: July 4
Labor Day: First Monday in September
Thanksgiving Day: Fourth Thursday in November
Christmas Day: December 25

The following holidays are recognized by the Federal Reserve, during which the Federal Reserve and most banks are closed and federal government employees receive a day off:

Martin Luther King Jr. Day: Third Monday in January
President’s Day: Third Monday in February
Juneteenth: June 19
Columbus Day: Second Monday in October
Veteran’s Day: November 11

Onboarding

Onboarding can take one business day, provided the employee has submitted all required compliance documents on the platform and the employee and customers have signed the employment agreement, MSA and SOW. Registration for health insurance takes place within the first week of employment.

Registration with health insurance is mandatory.

Additional Info

Employment Contract Details

The contracts must be written in English and can be bilingual. They must be in writing and signed by both parties.

A contract must contain:

Surname
Start date
Term of the contract
Role of the position
Job descrption
Place of activity
Director
Type of employment
Vacation/holiday
Salary
Payment terms
Completion

Probation Period

Probationary periods are not required by law in the USA, as this is a discretionary employment relationship. We do not accept probation periods in the USA.