13th month pay
in USA.

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

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United States

Is there a 13th month pay in the United States?

At the time of writing (Q1, 2023), USA has no legislation relating to 13th-month pay. However, it is common in the United States to give performance-based or incentive bonuses.

How is the 13th month pay calculated in USA?

There is no 13th month salary offered in practice or as part of any American laws. For other bonuses received in the US, it is taxed in addition to income the month it is received by the employee.

When is the 13th month salary paid in the United States of America?

In the US, all bonuses are up to the discretion of the employer or stipulated in the employment agreement.

Does the 13th month salary amount to any extra payment by the employer?

Since virtually no bonuses are guaranteed in USA, any bonus would be an extra payment by the employer.

Is the 13th month salary taxable in USA?

All bonuses received in America are subject to taxes as income.

Hiring in USA, Made Easy

Your business can easily hire employees in 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.

FAQs

Is the 13th month pay required by law or standard in the United States?

No, there is no requirement for employers in the US to pay 13th month pay or any other bonuses. Some employers may choose to pay performance-based bonuses as a method of attracting and retaining top talent, but any bonus is up to the discretion of the employer.

Are there more than 13th months of pay in the US?

No. In the US, there are only 12 months of pay guaranteed in an employment agreement. Any additional amount is considered bonus and is taxed as income.

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Gabor SzedlakCo-founder & COO at MindLabs (UK)

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Gary PaskyVP Software Development, PICS ITech (USA)

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Chris MorrellManaging Director, Schaeffler Group (Germany)

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Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

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