United States Payroll Knowledge

This article explains how payroll works for employees engaged in the United States through RemoFirst, covering pay schedules, deductions, contributions, benefits, leave, working time and end-of-employment entitlements. U.S. payroll is highly state-dependent, so this guide focuses on federal requirements and RemoFirst operating standards. 

For state-specific questions or anything not answered below, contact RemoFirst support, and the team will be happy to help.

Payroll Schedule in the United States

How often are employees paid in the United States?

RemoFirst supports the following pay frequencies in the United States:

• Semi-monthly (most common)
• Bi-weekly

What are the semi-monthly payroll dates in the United States?

Employees on semi-monthly payroll are generally paid on:

• The 15th of the month
• The last working day of the month

What currency are employees paid in the United States?

Employees in the United States are paid in US Dollars (USD, $).

Payslips in the United States

Where do employees access payslips in the United States?

Payslips for U.S. employees are not uploaded to the RemoFirst platform. Instead, employees access their payslips through the Vfficient employee portal. 

What deductions appear on a U.S. payslip?

Common deductions on a U.S. payslip include:

• Federal Income Tax
• State Income Tax, where applicable
• Social Security (OASDI)
• Medicare
• Benefits deductions
• 401(k) deductions, if enrolled

Salary Proration in the United States

Why was my first salary in the United States lower than expected?

Employees who join mid-pay period in the United States receive a prorated salary for that first period.

What are the standard salary conversions in the United States?

Standard salary conversions in the United States are:

• Monthly salary: Annual Salary ÷ 12
• Semi-monthly salary: Annual Salary ÷ 24
• Bi-weekly salary: Annual Salary ÷ 26
• Hourly rate: Annual Salary ÷ 2080

How is proration calculated in the United States?

Common proration methods in the United States are:

• Workdays method: Per Period Salary × (Days Worked ÷ Days in Pay Period)
• Hourly method: Hourly Rate × Hours Worked

Tax and Government Contributions in the United States

Updated for 2026: The Social Security wage base rose to $184,500 and the 401(k) employee contribution limit rose to $24,500. The federal overtime exempt salary threshold remains $684 per week. The figures below reflect the current year.

What employee payroll taxes apply in the United States?

Employees in the United States typically contribute:

• Social Security (6.2%)
• Medicare (1.45%)
• Federal Income Tax
• State Income Tax, if applicable

Social Security applies only up to an annual wage base, which is $184,500 for 2026. Once earnings pass that point, no further Social Security tax is withheld for the year. Medicare has no wage cap, and an additional 0.9% Medicare tax applies to wages above $200,000.

What employer taxes apply in the United States?

RemoFirst uses a planning estimate of a 12% employer burden in the United States. This includes Social Security, Medicare, FUTA, SUTA, workers' compensation, liability insurance and compliance costs.

Can a breakdown of the 12% U.S. employer burden be provided?

No. RemoFirst applies the 12% as a standard planning model in the United States and does not provide state-specific breakdowns.

Benefits in the United States

Is health insurance available in the United States?

Yes. RemoFirst offers health insurance in the United States.

When does U.S. health coverage begin?

If the employee is hired on the 1st day of the month, coverage starts immediately. If hired after the 1st, coverage starts on the 1st day of the following month.

Is health insurance mandatory in the United States?

For RemoFirst employees in the United States, ACA-compliant coverage is treated as mandatory due to the employer's size and its obligations under the Affordable Care Act.

401(k) Retirement Plan in the United States

Does RemoFirst offer a retirement plan in the United States?

Yes. RemoFirst offers a 401(k) retirement plan in the United States.

When can employees enroll in the U.S. 401(k)?

Employees in the United States can enroll after 90 days of employment.

Is U.S. 401(k) enrollment automatic?

No. Employees in the United States must request enrollment.

How much can employees contribute to a U.S. 401(k)?

For 2026, the employee contribution limit is $24,500. An additional catch-up contribution of $8,000 is available for employees aged 50 and over, and a higher catch-up of $11,250 applies to employees aged 60 to 63.

Can clients contribute to a U.S. 401(k)?

Yes. Employer contributions in the United States are optional and are determined by the client.

Public Holidays in the United States

How many federal holidays exist in the United States?

The United States recognizes 11 federal holidays.

Are employers required to provide paid holidays in the United States?

No. In the United States, paid holidays are generally a contractual benefit rather than a legal requirement. Federal holidays are legally observed only by federal employees, so private employers are not required to provide paid time off for them.

If a holiday is included in the employment agreement, does the U.S. employee get paid?

Yes. Approved paid holidays are automatically paid when no work is performed.

Annual Leave (PTO) in the United States

Is annual leave legally required in the United States?

No. There is no federal requirement for paid annual leave in the United States. PTO is governed by the employment agreement, client policy and state law.

What is a typical PTO entitlement in the United States?

Most employers in the United States offer 10 to 20 days of PTO annually.

Does PTO accrue in the United States?

Yes. PTO in the United States generally accrues throughout the year based on employer policy.

Sick Leave in the United States

Is paid sick leave mandatory in the United States?

Not federally. However, many states and cities in the United States require paid sick leave.

How is sick leave administered in the United States?

Sick leave rules depend on the employee's state of work. For state-specific questions, contact RemoFirst support.

Family Leave in the United States

What maternity leave applies in the United States?

The federal Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid, job-protected leave for eligible employees. Eligible employees are generally those who have worked for the employer for at least 12 months and at least 1,250 hours, at a location with 50 or more employees within 75 miles.

What paternity leave applies in the United States?

Eligible employees in the United States may also take up to 12 weeks of unpaid, job-protected leave under FMLA.

Are paid leave programs available in the United States?

Some states in the United States operate their own Paid Family Leave programs. For state-specific questions, contact RemoFirst support.

Expenses and Reimbursements in the United States

How are expenses submitted in the United States?

Employees in the United States upload expenses through the RemoFirst platform.

Are receipts required in the United States?

Receipts are not strictly required, but employees in the United States should upload them for client visibility and audit purposes.

When are reimbursements paid in the United States?

Approved reimbursements in the United States are generally paid on the second payroll cycle of the month.

Are reimbursements taxable in the United States?

Business expenses under an accountable plan are generally non-taxable in the United States. Flat allowances and stipends are generally taxable.

Working Hours in the United States

What are standard working hours in the United States?

A typical full-time schedule in the United States is 35 to 40 hours per week. The federal minimum wage is $7.25 per hour, though many states and cities set higher rates.

Is overtime required in the United States?

For non-exempt employees in the United States, overtime applies after 40 hours worked in a workweek, at a rate of 1.5 times regular pay.

Do all employees qualify for overtime in the United States?

No. Exempt employees in the United States are not eligible for overtime. To be exempt, an employee must generally be paid a salary of at least $684 per week ($35,568 per year) and meet a duties test based on their actual responsibilities. Some states set higher salary thresholds.

Employment Changes in the United States

Can salaries be increased in the United States?

Yes. Salary increases in the United States may occur at any time.

Can salaries be reduced in the United States?

Yes, provided that minimum wage requirements are maintained and exempt status requirements remain satisfied.

Do employees need to sign salary adjustment letters in the United States?

No. RemoFirst does not require employee signatures for salary adjustment letters in the United States.

Probation in the United States

Is a probation period supported in the United States?

No. RemoFirst does not support probation periods in the United States. Employment begins under standard at-will employment principles.

Resignation in the United States

Is notice required in the United States?

No. There is no federal notice requirement in the United States. Employees may resign at any time under at-will employment principles, though a contractual notice period may still apply.

What is included in final pay in the United States?

Final pay in the United States may include:

• Outstanding salary
• PTO payout, where required
• Approved reimbursements
• Earned commissions or bonuses

State-specific rules apply to final pay.

Termination in the United States

Can employees be terminated without cause in the United States?

Yes. The United States generally operates under at-will employment, which allows either party to end the employment relationship at any time, subject to anti-discrimination and other legal protections.

Is severance mandatory in the United States?

No. Severance in the United States is generally discretionary unless it has been contractually agreed.

Are there state-specific termination requirements in the United States?

Yes. Final pay timing, PTO payout and other termination obligations vary by state in the United States. For state-specific questions, contact RemoFirst support.

For any payroll question about the United States not answered above, contact RemoFirst support and the team will be glad to help.