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Hiring in American samoa
American Samoa is the southernmost US territory located in the South Pacific Ocean. It comprises of five islands and two coral atolls. American Samoa primarily exports tuna, whereby it mostly exports to and imports from the United States. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with American Samoa’s legal and tax regulations. The Fair Labor Standards Act (FLSA) applies generally to employment within American Samoa as it does to employment within the United States. Thus, as the Employer of Record (EOR), Global PEO’s facilitate companies by ensuring compliance with FLSA. The current version of American Samoa’s local tax code is the version of the American Tax Code that was in effect on December 31, 2000, with some modifications. Global PEO’s ensure compliance with American Samoa’s tax regulations.
statutory labor requirements
Probation Period
- A 90-day probationary period is standard
Annual Leave
- Employees with less than three years of creditable service earn four (4) hours or one-half work day of annual leave for each bi-weekly pay period.
- Employees with three but less than 15 years of creditable service earn six hours or three-fourths work day of annual except for the last full pay period of the year for which they earn then hours of annual leave.
Public Holidays
- Martin Luther King Jr. Day (20th January)
- Washington's Birthday (17th February)
- Good Friday (10th April)
- American Samoa Flag Day (17th April)
- Independence Day (3rd July)
- Labor Day (7th September)
- Columbus Day (12th October)
Maternity Leave
- Mothers are entitled to 30 days of paid maternity leave
Sick Leave
- Employees earn sick leave at the rate of four-hour or one-half workday for each full-bi-weekly pay period sick leave is earned from the first pay period of employment.
- There is no qualifying period for the earning of sick leave.
Work Hours
- A typical day at work consists of either 12-15 hours of work.
Overtime
- The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA).
- Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.
- There is no limit in the Act on the number of hours’ employees aged 16 and older may work in any workweek.
- The Act does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.
13th / 14th Month Pay
- No
- There is no statutory requirement to pay the 13th or 14th month salary.
- However, employees may decide to award an end of year bonus akin to the 13th month salary.
- There is no entitlement to annual leave instead it is seen as a privilege. The leave can be accrued but may not exceed 60 days.
income tax
- There is no requirement in U.S. law that PR and AS use a mirror code.
- Thus, these two territories may enact their own income tax laws, subject to any requirements in U.S. law (e.g., any such tax laws must comply with the U.S. Constitution).
- AS, meanwhile, has chosen to adopt a modified version of the IRC as its territorial income tax laws.
- The current version of AS’s local tax code is the version of the IRC that was in effect on December 31, 2000, with some modifications
- As in other U.S. territories, the U.S. federal government imposes payroll taxes and the equivalent self-employment tax on income from work in American Samoa, but not the federal income tax on income generated in American Samoa by its residents (except from work as U.S. government employees).
- Instead, the government of American Samoa itself taxes the worldwide income of its residents, as well as the income generated there by nonresidents, largely under the same rules and rates as the U.S. tax code in effect in 2000, with certain modifications such as a minimum tax rate of 4% and an additional wage tax of 2%.
- The taxation rate in this territory averages around 27 percent on all sources of income, including wages, salaries, and self-employment.
immigration
- US citizens and US nationals do not require a visa and may enter and leave American Samoa freely, but they do need a passport
- Nationals from Australia, Canada, UK, Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain and Sweden are issued with a 30-day entry permit on arrival
- All other nationals intending to visit American Samoa for business or holiday are required to apply for an entry visa
- All visitors to American Samoa require a passport valid for six months, a return ticket or onward ticket, and enough funds to support their stay.
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Entry Visa |
|
30 days |
|
statutory benefits
- These are mandatory benefits as postulated by law
- These include public holidays, sick leave, maternity leave, overtime pay
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Social Security Benefits |
payments and invoicing
- Individuals must file income tax returns on form 390 before April 15th
- Filing after this date may lead to interest and penalties
- Joint returns cannot be filed
- If you are not a bona fide resident of American Samoa and a nonresident alien, then you must file an American Samoa income tax return reporting income that is only from American Samoa.
- You must also file a U.S. tax return using Form 1040NR.
employee accruals
| Christmas Bonus% | 0% |
| Christmas Bonus Over Vacations % | 0% |
| Severance per Year % | Employees are entitled to one week severance pays based one year of service (1.37% of annual salary) |
| Vacations % | Employees are entitled to 12 days of paid leave if they have worked for less than 3 years (3.29% of annual salary) |
| Notice % | Employees are entitled to on week of notice period if they have worked for more than 3 months but less than 1 year (1.37%) |
| Christmas Bonus Over Notifications% | 0% [Unpaid holidays must be paid in the notice/severance package] |
| Vacations Plus% | 0% |
| Total percentage of Salary (yearly) | The total employment accruals as a percentage of salary per anum are equal to 6.03% |
employer accruals
Additional information (Country Accruals)
| Provident fund | 7% |
| Coverage Provident fund | Employed persons, including household workers. |
| Voluntary coverage for self-employed and unemployed persons. |
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Employees with 3 years of service are entitled to 12 days of annual leave (one-half work day of annual leave for each bi-weekly pay period). | This equals 3.28% (12/365 days) of annual income. |
| Maternity Leave | Mothers are entitled to 30 days of paid maternity leave | This equals 8.22% (30/365 days) of annual income. |
| Sick Leave | Employees earn sick leave at the rate of four-hour or one-half workday for each full-bi-weekly pay period. Thus, 12 days a year | This equals 3.28% (12/365 days) of annual income. |
| Overtime Pay | Employees must receive overtime pay for hours worked over 40 in a workweek at a rate not less than 1.5 times their regular rates of pay. | Normal hourly rate is 9.75 USD (390/40). Overtime equals 14.625 USD |
| Social Security Contribution | Employers make contributions of 6.2% to OASDI and 1.45% to Medicare. | Total employer contributions equal 7.65%. |
