Back Disclaimer

Payroll and Benefits Guide United States – District Of Columbia

Last updated: Mar 21, 2025

Currency
United States Dollar (USD)
Employer Taxes
Unknown
Payroll Frequency
Unknown
Employee Costs
%
Capital
Washington, D.C.
Date Format
mm/dd/yyyy
Fiscal Year
1 January - 31 December
video poster

Contribution

Employer Employer Payroll Contributions
1.90% – 7.40% Unemployment Insurance (state) (applied on salary up to 9,000 USD  per year)
6.20% FICA Social Security (federal) (applied on salary up to 160,200 USD per year)
1.45% FICA Medicare (federal)
0.60% – 6.00%  Federal Unemployment Tax Act (FUTA) applied on salary up to 7,000 USD per year. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to 0.6%.
0.60% (rate will vary based on insurance policy  and company setup) Worker compensation Insurance
8.34% – 22.15% Total Employment Cost
Employee Employee Payroll Contributions
6.20% FICA Social Security (federal)
1.45% FICA Medicare (federal)
0.90% Medicare additional taxes. (applied on salary over 200,000 USD per year)
7.65% – 8.55% Total Employee Cost
State Employee Income Tax
4.00% Up to 10,000 USD annually
6.00% 10,000-40,000USD annually
6.50% 40,000-60,000USD annually
8.50% 60,000-250,000USD annually
9.25% 250,000-500,000USD annually
9.75% 500,000-1,000,000USD annually
10.75% 1,000,000USD and above annually
Federal Employee Income Tax
Federal Tax – Singles
10.00% Up to 11,600 USD
12.00% 11,601 USD to 47,150 USD
22.00% 47,151 USD to 100,525 USD
24.00% 100,525 USD to 191,950 USD
32.00% 191,950 USD to 243,725 USD
35.00% 243,725 USD to 609,350 USD
37.00% 609,350 USD or more
Federal Tax – Married, filing jointly
10.00% Up to 22,000 USD
12.00% 22,001 USD to 89,450 USD
22.00% 89,451 USD to 190,750 USD
24.00% 190,751 USD to 364,200 USD
32.00% 364,201 USD to 462,500 USD
35.00% 462,501 USD to 693,750 USD
37.00% 693,751 USD or more
Federal Tax – Heads of Households Federal Tax – Heads of Households
10.00% Up to 15,700 USD
12.00% 15,701 USD to 59,850 USD
22.00% 59,851 USD to 95,350 USD
24.00% 95,351 USD to 182,100 USD
32.00% 182,101 USD to 231,250 USD
35.00% 231,251 USD to 578,100 USD
37.00% 578,101 USD or more
Standard Deduction and Personal Exemption
14,600.00 USD Single
29,200.00 USD Married Filing Jointly
21,900.00 USD Head of Household

Minimum Wage

The minimum wage in the District Of Columbia is 17.00 USD per hour.

Payroll

Payroll Cycle

In Washington D.C., employers are required to pay employees all wages due at least twice during each calendar month. However, an employer may pay bona fide administrative, executive, and professional employees at least once per month

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

In the District of Columbia, the standard workweek is 40 hours per week or 8 hours per day.

Overtime

Work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay. If employees are scheduled to work on weekends or rest days, no additional payment is required. However, should an employer request an employee to work in exceptional circumstances on these days, then overtime is paid at the rate of 150% of the regular pay.

 

Leave

Annual Leave (vacation)

The Districts of Columbia does not have any state laws that govern paid leave, however, it is common for employers to decide whether to offer paid or unpaid vacation leave. This must comply with employment law and must be stipulated in the collective bargaining agreements.

Public Holidays

Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.

Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.

Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.

 

Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
15 Jan 2024 Monday Martin Luther King Jr. Day
19 Feb 2024 Monday Presidents Day
27 May 2024 Monday Memorial Day
19 Jun 2024 Wednesday Juneteenth Independence Day
4 Jul 2024 Thursday Independence Day July
2 Sep 2024 Monday Labor Day
14 Oct 2024 Monday Columbus Day
11 Nov 2024 Monday Veterans Day
28 Nov 2024 Thursday Thanksgiving Day
25 Dec 2024 Wednesday Christmas Day

 

 

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

FMLA eligible employees are entitled to:

  • 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Care for the employee’s spouse, child, or parent who has a severe health condition.
  • Leave in the event of a serious health condition that makes the employee unable to perform the essential functions of their job.
  • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

Or

  • 26 working weeks of leave during a single one-year period to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

 

Maternity Leave

Falls under the FMLA (see Sick Leave).

 

Paternity Leave

Falls under the FMLA (see Sick Leave) and The Massachusetts Parental Leave Act (see Maternity Leave).

Parental Leave

Falls under the FMLA (see Sick Leave).

Other Leave

  • Jury Duty: Full-time employees with 3 days of job-protected paid leave for jury duty, as a witness in a case, responding to a subpoena, or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.
  • Voting Leave: Employees who are registered to vote must be allowed up to 2 hours unpaid leave to vote in a general or special election.

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated “at will.” This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination.

Notice Period

Most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Massachusetts, payout of unused vacation time is not required by law. However, employers will generally pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation. There is no official notice period, but general practice is 2 weeks.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Except when outlined in an employment contract or collective bargaining agreement, employers are not required to pay severance to terminated employees. Many employers choose to offer severance payment based on the employee’s length of employment.

Probation Period

There are no provisions in the law regarding probation or trial periods. However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

VAT

The District of Columbia state sales tax rate is 5.75%

Stay up to date on payroll & employment law changes

Questions & Answers

Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Download this guide to read later

Payroll and Benefits Guide in United States – District Of Columbia

Download Free Guide

See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws

While Papaya has made efforts to ensure the accuracy and timeliness of the information provided here, Papaya does not offer any warranties or representations, whether express or implied, regarding its correctness. The information is subject to change without prior notice. Additionally, the content of this publication may be affected by changes in (tax or others) laws in various jurisdictions. None of the information in this publication should be construed as a commercial offer or solicitation, or as a recommendation or any specific transaction. It should not be considered as a substitute for engaging in a legal, tax, financial, investment, or accounting consultancy. Papaya is not responsible for any loss or damage incurred from the use of or reliance on the information provided herein.
Download this guide to read later

Payroll and Benefits Guide
in United States – District Of Columbia

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

Download free guide
exit-popup
All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country