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United States – Oklahoma 2022
Day Date Holiday Notes
Saturday Jan-1 New Years Day
Monday Jan-17 Martin Luther King Day
Monday Feb-21 President's Day
Monday May-30 Memorial Day
Monday Jul-4 Independence Day
Monday Sep-5 Labor Day
Thursday Nov-11 Veterans Day
Thursday Nov-24 Thanksgiving Day
Friday Nov-25 Thanksgiving Friday
Sunday Dec-25 Christmas Day
Monday Dec-26 Christmas Holiday
Tuesday Dec-27 Christmas Holiday
Countrypedia

United States – Oklahoma
Payroll and Benefits Guide

Last updated: Feb 16, 2022
Currency
United States Dollar (USD)
Payroll Frequency
Bi-Monthly
Employer Taxes
10.05% - 22.65%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For United States – Oklahoma

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Overview

Capital
Oklahoma City
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

0.30% - 7.50% Maximum taxable wages are 24,800 USD
Unemployment Insurance (State)
1.50% (Voluntary Contribution permitted)
New Unemployment Insurance (State)
6.20% (Maximum taxable wages is 147,000.00 USD)
FICA Social Security (Federal)
1.45% (Maximum taxable wages is 147,000.00 USD) 
FICA Medicare (Federal)
0.60% - 6.00% (Maximum taxable wages is 7,000 USD)
FUTA (Federal Unemployment Tax Act)  The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to0.6%. 
10.05% - 22.65% Total Employment Cost

Employee

Employee Payroll Contributions

6.20% (Maximum taxable wages is 147,000.00 USD)
FICA Social Security (Federal)
1.45% (Maximum taxable wages is 147,000.00 USD) 
FICA Medicare (Federal) 
0.9%
Additional tax on earnings over 200,000 USD (High-income earners also pay an additional 0.9 percent in Medicare taxes)
7.65% - 8.55%

Employee Income Tax

State Income Tax
5.00%
Supplemental Wage

Employee Income Tax

State Employee Income Tax - Single filers
0.50%
0 USD to 1,000 USD
1.00%
1,000 USD to 2,500 USD
2.00%
2,500 USD to 3,750 USD
3.00%
3,750 USD to 4,900 USD
4.00%
4,900 USD to 7,200 USD
5.00%
7,200 USD to 8,700 USD
5.25%
8,700 USD and above

Employee Income Tax

Standard Deduction and Personal Exemption
Single
6,350 USD
Couple /Married Filing Jointly
11,900 USD
Personal exemption
Single
1,000 USD
Couple /Married Filing Jointly
2,000 USD
Dependent
1,000 USD

Employee Income Tax

Personal Exemption - State Taxes
1,000 USD
Single
2,000 USD
Couple / Joint Filing
1,000 USD
Dependant

Employee Income Tax

Federal Tax - Single Filer
10.00%
Up to 10,275 USD
12.00%
10,276 USD to 41,775 USD
22.00%
41,776 USD to 89.075 USD
24.00%
89,076 USD to 170,050 USD
32.00%
170,051 USD to 215,950 USD
35.00%
215,951 USD to 539,900 USD
37.00%
539,901 USD or more

Employee Income Tax

Federal Tax - Married, filing jointly
10.00%
Up to 20,550 USD
12.00%
20,551 USD to 83,550 USD
22.00%
83,551 USD to 178,150 USD
24.00%
178,151 USD to 340,100 USD
32.00%
340,101 USD to 431,900 USD
35.00%
431,901 USD to 647,850 USD
37.00%
647,851 USD or more

Employee

Employee Income Tax

Federal Tax - Head of Households
10.00%
Up to 14,650 USD
12.00%
14,651 USD to 55,900 USD
22.00%
55,901 USD to 89,050 USD
24.00%
89,051 USD to 170,050 USD
32.00%
170,051 USD to 215,950 USD
35.00%
215,951 USD to 539,900 USD
37.00%
539,901 USD or more

Employee Income Tax

Standard Deduction and Personal Exemption
Single Filer
12,950.00 USD
Married Filing Jointly
25,900.00 USD
Head of Household
19,400.00 USD
Employer Taxes
3 HIGHEST
3 LOWEST
Mexico
Russia
South Korea
Georgia
Lithuania
Macedonia
43.72%
38.5%
34.93%
2%
1.77%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Germany
Netherlands
Belarus
Ukraine
Cambodia
35%
31.05%
30.35%
1%
0.6%
0%

Minimum Wage

General

Oklahoma has a State minimum wage of 7.25 USD, the same as the Federal Rate. To qualify for the State Minimum Wage, an employer must either have ten or more full-time employees (at any one location) or an annual gross sales figure of more than $100,000, irrespective of how many full-time employees.

There are also other minimum requirements:

Minimum Cash wage (tipped employee) – 3.63 USD
Maximum tip credit – 3.63 USD
Youth Minimum Wage – 4.25 USD

For Oklahoma employees who do not fulfill the above criteria, the State Minimum Wage is 2.00 USD.

There are also other minimum requirements:

Minimum cash wage (tipped employee) – 1.00 USD
Maximum tip credit  – 1.00 USD

Payroll

Payroll Cycle

Employees in Oklahoma are paid semi-monthly or monthly, with payments on dates stipulated in the employee contract. Payments are generally made on or before the 1st and 15th of the month.

13th Salary

There is no legislation for 13th-month payments in Oklahoma.

Working Hours

General

There are no provisions in the law that outline a fulltime work week in Oklahoma, however, most employees are subject to the federal Fair Labor Standards Act (FLSA) which defines a full work week as 40 hours or 8 hours per day.

Overtime

Oklahoma adheres to the Fair Labour Standards Act (FLSA), and overtime is paid where employees work more than 40 hours in a single working week. The employer must pay 150% of the regular salary rate for the extra hours worked as overtime. Similarly, 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 will be payable at 150% of the regular salary rate for the extra hours worked.

The Wage and Hour Division (WHD) of the Department of Labour (DOL) is responsible for the administration and enforcement of the FLSA.

Leave

Paid Time Off

Oklahoma does not have any state statute governing the amount and payment of vacation time; 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

There are 12 official holidays.

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).

In addition, in Oklahoma, employers must provide one hour of paid sick leave for every 30 hours worked, up to an annual maximum of 40 hours of paid sick leave.

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA eligible employees are entitled to:

  • Twelve 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.
  • The employee may be entitled to leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • To care for the employee’s spouse, child, or parent who has a severe health condition.
  • 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

  • Twenty-six working weeks of leave during a single one-year period to care for a covered servicemember 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).

In addition to the FMLA, Oklahoma has the Oklahoma Civil rights Act which enhances the rights for pregnant employees. The Act entitles employees who work an average of 30 hours per week to six continuous weeks of paid leave.  This applies to adoptive parents too.

Maternity Leave

Maternity leave falls under the FMLA. See sick leave section

Paternity Leave

Maternity leave falls under the FMLA. See sick leave section

Parental Leave

Parental leave falls under the FMLA. See sick leave section

Other Leave

Oklahoma law requires all employers to provide their full-time employees job-protected but unpaid leave for their duty as jurors or 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.

In addition to the federal law USERRA, Oklahoma law provides Protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.

Oklahoma law states that all registered employees must be allowed to take necessary time off from work, as unpaid leave, to vote in any municipal, county, state, or federal primary or general election.  Employees must provide reasonable notice to their employers to take time off to vote.

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 case-by-case.

Notice Period

In Oklahoma, most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Oklahoma, pay out of unused vacation time is not required by law. Still, generally, employers will pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation; there is no official notice period. Still, in general practice, two weeks’ notice is a minimum requirement.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers need not make severance payments to terminated employees. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties, many employers choose to offer severance payment linked to the employee’s length of service.  Most common in Oklahoma is one week pay for every year of service.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (“USCIS”) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).  To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request; the types of visas include:

  • H-1B – for applicants with a college degree hired to do specialised work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialised knowledge.
  • 0 – for people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
  • E-2 – for those with advanced degrees or exceptional ability.
  • E-3 – for skilled workers and professionals, as well as unskilled workers.
  • E-4 – Members of certain immigrant groups.
  • E-5 – Immigrant investors in US companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorised to work in the United States.

VAT

General

Oklahoma has a minimum combined 2022 Sales Tax Rate of 7.701% (State tax at 4.54% and Local tax between 0% to 6.5% USD) 

Version History

February 16, 2022
Payroll contributions and personal income tax rates have been updated.
VAT: Oklahoma has a minimum combined 2022 Sales Tax Rate of 7.701% (State tax at 4.54% and Local tax between 0% to 6.5% USD)
October 14, 2021
Unemployment insurance changed to 0.30% – 7.50% from 0.10% - 5.50%

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