Businesses in the United States are paying out 8.8% of their employees’ annual salaries in social security and other so-called employment “taxes,” according to a new study by Urbach Hacker Young International Limited (UHY). This is well below the global average of $6,141 or 20.5% of salary.
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According to a press release from UHY, the international CPA firm and consultancy network, businesses in the U.S. are now paying an average of $2,652 per year in these employment taxes—on top of employees’ wages—for an employee earning $30,0001.
There has been a global decline, since 2012, in the amount that businesses have to pay in additional employment “taxes” on top of employees’ wages, from 21.6% of an employee’s salary to 20.5%. However, UHY says that the global average still remains persistently high, with many countries seeing double-digit percentage increases since 2012.