Decrypting The United States' Labor Environment

With a mixture of emerging and booming economies, political uncertainty and extreme contrasts in business customs, the Americas can never be categorized as one homogeneous whole. However, for regional and global HR and payroll managers, there are common challenges and opportunities. Here we take a look at how HR & Payroll works in the United States.

Social Security System

• The social security system comprises Old Age, Survivors and Disability Insurance (OASDI), as well as Hospital Insurance (Medicare).
• Employers are required to withhold employees' contributions to social security and remit it to the federal government.
  
  
  • Employers and employees both contribute 6.2% of an employee's salary each towards OASDI. Both also contribute 1.45% of salary each towards Medicare.