Payroll and Benefits Guide United States – District Of Columbia
Last updated: Mar 21, 2025
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)
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%
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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...
Questions & Answers