<img alt="" src="https://secure.intelligentcloudforesight.com/779425.png" style="display:none;">
Skip to content

Hiring in Guam

Hiring employees compliantly in Guam means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Guam so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Guam; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Guam? Contact us about our International EOR Service

Labor Laws in Guam

Employee Probation Period

  • Guam has a 90-day probationary period
New call-to-action

Holidays in Guam

Guam celebrates ten national public holidays as well as additional public holidays that vary by state:

New Year's Day 1st January
Guam Discovery Day 2nd March
Good Friday 10th April
Memorial Day 25th May
Independence Day 4th July
Liberation Day 21st July
All Souls Day 2nd November
Veterans Day 11th November
Santa Marian Kamalen Day 8th December
Christmas Day 25th December

 

Onboard employees in days, anywhere in the world

Maternity Leave in Guam

  • Maternity leave shall be granted to a female employee occupying a permanent position who is absent from work as a result of childbirth or adoption of a child(ren) five (5) years old or younger. 
  • Such maternity leave shall not exceed twenty (20) days, encompassing the date of childbirth or adoption.

Paternity Leave in Guam

  • Paternity leave shall be granted to a male employee occupying a permanent position upon the birth or adoption of his child(ren). 
  • Such paternity leave shall not exceed twenty (20) days, encompassing the date of childbirth or adoption of a child(ren) five (5) years old or younger.

Working Hours in Guam

  • Guam generally has a 40 hours work week

Overtime in Guam

  • Employees who work overtime are eligible to receive 1.5 times the regular wage

Guam Salary and Wages

Start your Global Expansion

13th/14th Month Salary in Guam

  • No
  • There is no statutory requirement to pay 13th or 14th month salary.
  • Recently in light of the pandemic the government signed a bill where they gave a bonus for the six weeks where they had to report to work when others were shielding.

Income Tax in Guam

  • Guam residents are subject to tax on all income, regardless of source. 
  • An individual who is not a citizen or permanent resident of the United States or a resident of Guam is subject to tax on Guam-source income only. 
  • A nonresident alien is subject to Guam tax on income that is effectively connected with a Guam trade or business and on Guam-source fixed or determinable, annual or periodical gains, profits and income (generally investment income, including dividends, interest and rental income).
  • Gross income and deductions in Guam are determined under the same rules as those in the United States. 
  • Taxable income from personal services includes all cash wages, salaries, commissions and fees paid for services performed in Guam, regardless of where the payments are made. 
  • In addition, taxable income includes the value of an employee’s expenses paid by the employer and the fair-market value of noncash goods and services provided by the employer, including housing and vehicles. 
  • The applicable Guam tax rates, like the US rates, depend on whether an individual is married and, if married, whether the individual elects to file a joint return with his or her spouse. 
  • Certain individuals also qualify to file as head of household. 
  • The graduated tax rates listed below apply in Guam for 2023.

Married Filing Joint Return

Not over $22,000

10% of the taxable income

Over $22,000 but not over $89,450

$2,200 plus 12% of the excess over $22,000

Over $89,450 but not over $190,750

$10,294 plus 22% of the excess over $89,450

Over $190,750 but not over $364,200

$32,580 plus 24% of the excess over $190,750

Over $364,200 but not over $462,500

$74,208 plus 32% of the excess over $364,200

Over $462,500 but not over $693,750

$105,664 plus 35% of the excess over $462,500

Over $693,750

$186,601.50 plus 37% of the excess over $693,750

Married Filing Separate Return

Not over $11,000

10% of the taxable income

Over $11,000 but not over $44,725

$1,100 plus 12% of the excess over $11,000

Over $44,725 but not over $95,375

$5,147 plus 22% of the excess over $44,725

Over $95,375 but not over $182,100

$16,290 plus 24% of the excess over $95,375

Over $182,100 but not over $231,250

$37,104 plus 32% of the excess over $182,100

Over $231,250 but not over $346,875

$52,832 plus 35% of the excess over $231,250

Over $346,875

$93,300.75 plus 37% of the excess over $346,875

Single Individual

Not over $11,000

10% of the taxable income

Over $11,000 but not over $44,725

$1,100 plus 12% of the excess over $11,000

Over $44,725 but not over $95,375

$5,147 plus 22% of the excess over $44,725

Over $95,375 but not over $182,100

$16,290 plus 24% of the excess over $95,375

Over $182,100 but not over $231,250

$37,104 plus 32% of the excess over $182,100

Over $231,250 but not over $578,125

$52,832 plus 35% of the excess over $231,250

Over $578,125

$174,238.25 plus 37% of the excess over $578,125

Tap the world's talent pool

Social Security in Guam

  • Under the Federal Insurance Contributions Act (FICA), social security tax is imposed on wages or salaries received by individual employees to fund retirement benefits paid by the federal government. 
  • The following two taxes are imposed under FICA: 
    • Old-age, survivors and disability insurance (OASDI) 
    • Hospital insurance (Medicare) 
  • For 2019, the OASDI tax is imposed on the first USD132,900 at a rate of 6.2% on the employee and 6.2% on the employer. 
  • Medicare tax is imposed, without limit, at a rate of 1.45% on the employee and 1.45% on the employer. 
  • In addition, higher income employees (but not their employers) pay an extra 0.9% Medicare tax.
  • The income threshold varies by tax return filing status. Married couples filing jointly pay the extra tax on their combined wages in excess of USD250,000, single taxpayers and heads of households on wages exceeding USD200,000, and married taxpayers filing separately on wages exceeding USD125,000. 
  • Self-employment income (see below) is added to the amount of wages when determining the threshold. 
  • FICA tax is imposed on compensation for services performed in the United States, regardless of the citizenship or residence of the employee or employer. 
  • Consequently, absent an exception, nonresident alien employees who perform services in the United States are subject to FICA tax, even though they may be exempt from US income tax under a statutory rule or an income tax treaty. 
  • Certain categories of individuals are exempt from FICA tax, including foreign government employees, exchange visitors in the United States under J visas, foreign students holding F, M or Q visas, and individuals covered under social security totalization agreements between the United States and other countries. 
  • These agreements allow qualifying individuals to continue paying into the social security system of their home countries, usually for a period of five years.

Contribution

Employer

Employee

OASDI

6.2%

6.2%

Medicare

1.45%

1.45%

New call-to-action

Immigration Guam

Several business-related nonimmigrant visa categories are described below. 

Visitor for business—B-1

  • B-1 status is issued to people temporarily visiting the United States to engage in business on behalf of foreign employers. 
  • B-1 holders may not be employed by or receive salary from US employers, but, among other activities, they may negotiate contracts, sell company products, develop business leads and attend conferences and business meetings on behalf of their foreign employers. 
  • A temporary business visitor may accept reimbursement for incidental expenses such as travel expenses. 
  • A B-1 visitor must retain unrelinquished domicile in the foreign country to where he or she intends to return at the conclusion of his or her temporary US stay. 
  • In general, business visitors with B-1 visas may enter the United States for periods of up to six months. 
  • However, B-1 status can be granted for a shorter period, often not exceeding 30 days, unless the business visitor can justify a longer period of admission. 
  • Applications for an extension beyond the initial entry period can be sought from the United States Citizenship and Immigration Service (USCIS).

Specialty occupations—H-1B

  • The H-1B category covers foreign nationals employed in specialty occupations that require a theoretical and practical application of highly specialized knowledge, as well as a bachelor’s degree or the equivalent in the field. 
  • Before applying for an H-1B visa, an employer must file a Labor Condition Application (LCA) with the Department of Labor (DOL) and certify that, among other things, the foreign national will be paid at least the prevailing wage for the proffered position. 
  • On 15 March 2019, the DOL issued policy guidance regarding LCA posting requirements. 
  • A prospective employer must also provide notice of filing the application by posting a hard copy notice, electronic notification or, when applicable, notification to the company’s bargaining representative. 
  • If posting by hard copy notice, the employer must post notice of filing the application in two conspicuous locations at the employment site for at least 10 consecutive business days. 
  • If the employer meets the requirements, the holder of the H-1B status is entitled to a maximum six-year stay in the United States. 
  • In specified circumstances, extensions beyond the six-year limit may be available. 
  • Each year, only 65,000 H-1Bs are made available. 
  • In addition, regulations allow a further 20,000 H-1Bs to be issued to persons having a master’s or higher degree from qualifying US post-secondary institutions. 
  • These requirements apply to both initial and renewal petitions. Prior to issuing this policy guidance, the USCIS generally permitted petitioning employers to provide general statements regarding the dates and locations of an H-1B worker’s proposed or possible employment at external client locations. 
  • The current policy guidance specifically overturns the prior guidance and institutes a requirement for a specific, detailed itinerary corroborated by contracts covering these employees’ work. 
  • On 19 November 2018, a new ETA Form 9035, Labor Condition Application (LCA), was implemented by the DOL. 
  • The new LCA form requests that the employer discloses the following: 
    • Estimated number of workers that will perform work at the intended place of employment 
    • Whether the worker subject to the LCA will be placed with a secondary employer at the place of employment 
    • If the worker is placed with a secondary employer, the legal business name of the secondary employer 
  • These revisions were made to improve transparency about the number of H-1B workers being sent to worksites, the locations at which H-1B workers will be placed and the entities with which H-1B workers will be placed.

Specialty occupations—Trainees—H-3

  • H-3 status may be issued to foreign nationals to enter the United States for up to two years to receive training and to develop skills that will be used in their careers abroad. 
  • Trainees must participate in structured training programs at US companies. 
  • The programs must incorporate theoretical and practical instruction, and may not consist solely of on-the-job training. 
  • The training must be unavailable in the foreign national’s home country, and the skills acquired must apply to work outside the United States. 
  • For short-term training assignments (typically up to three months), an H-3 visa may not be required (for someone who falls under the VWP or who does not require a US visa), because in some instances the US immigration authorities recognize the “B-1 in lieu of an H-3” visa, which allows individuals to apply at a consulate (or in the case of the VWP, at the port of entry) for admission for the purpose of short-term training. 
  • Spouses and unmarried children of H-3 visa holders are eligible for H-4 status, but are not permitted to work in the United States.

Intracompany transferees—L-1

  • The L-1 visa allows foreign companies with affiliated operations in the United States to transfer needed personnel to their US facilities. 
  • L-1 visas may be issued to foreign nationals who are employed abroad in executive or managerial positions, or who hold positions involving specialized knowledge in the company’s procedures, processes, services and/or products. 
  • On 15 November 2018, the USCIS issued a Policy Memorandum (PM) clarifying the requirement that the qualifying organization must have employed the principal L-1 beneficiary at the related foreign entity abroad for at least one continuous year during the three years preceding the time of petition filing. 
  • The PM explains the following: 
    • The L-1 beneficiary must be physically outside of the United States during the required one continuous year of employment. 
    • The petitioner and the beneficiary must meet all requirements, including the one year of foreign employment, at the time the petitioner files the initial L-1 petition. 
  • Specifically, the PM states that while a qualifying foreign entity employs a beneficiary abroad, brief trips to the United States for business or pleasure in B-1 or B-2 status tolls the one continuous year of employment abroad. 
  • If the beneficiary made brief trips to the United States that year for a total of 60 days, the beneficiary would need to accrue at least an additional 60 days of qualifying employment to meet the one-year foreign employment requirement. 
  • On arrival in the United States, the beneficiary must assume an executive, managerial or specialized knowledge position with the US affiliate, parent, subsidiary or branch office.
  • Managers and executives may be issued and retain L-1A status for up to seven years; 
  • L-1B specialized-knowledge personnel may remain in the United States in that status for up to five years. 
  • For startup operations, L-1 visas are granted initially for a one year “new office” period. 
  • For visa extensions, startup companies must prove at the end of the year that they are “doing business” in the United States and have made progress toward becoming viable operating entities that need the services of managers, executives or personnel with specialized knowledge. 
  • If, at the end of the first year, the startup company is unable to prove that this progress has been made, it may be possible for the individual to receive an extension of an additional year to continue to grow the business. 
  • L-1B specialized knowledge visa holders may not work primarily at a worksite other than that of the petitioning employer if either of the following conditions will apply: 
    • The work to be carried out will be controlled by a different employer. 
    • The off-site arrangement will provide labor for hire, rather than service related to the specialized knowledge of the petitioning employer.

Extraordinary ability—O-1

  • The O-1 visa category is for persons of extraordinary ability in the sciences, arts, education, business or athletics. 
  • Separate tests for demonstrating extraordinary ability exist for the following categories of individuals: 
    • Foreign nationals in the motion picture and television industries 
    • Other foreign nationals Most foreign nationals must prove their claim of extraordinary ability by providing evidence of sustained national or international acclaim. 
  • They may enter the United States only to work in their fields, and US immigration authorities must determine that their entry substantially benefits the United States. 
  • O-1 petitions are submitted to the USCIS for adjudication, and in some instances must be accompanied by proof of consultation with appropriate US labor unions (particularly those representing individuals in the arts, entertainment or athletics).
Need assistance hiring in Guam? Contact us about our International EOR Service

Type of Visa/ Permit

Documentation

Validity

Eligibility

B-1 Visa

  • A Nonimmigrant Visa Electronic Application
  • A passport valid for travel to the United States
  • One (1) 2"x2" (5cmx5cm) photograph taken within the last six months
  • 10-year travel history
  • List of siblings and children

6 months

  • B-1 status is issued to people temporarily visiting the United States to engage in business on behalf of foreign employers. 
  • A B-1 visitor must retain unrelinquished domicile in the foreign country to where he or she intends to return at the conclusion of his or her temporary US stay. 

H1-B Visa

  • Valid original passport
  • All old passports held
  • One photograph as per specification.
  • US Visa Application Form DS-160 confirmation page stamped at the Visa Application Center (VAC)
  • US Visa Application Fee payment receipt.
  • Visa Interview appointment letter.
  • Original Notice of Action-I-797.
  • Blanket L1 applicants must carry the original I-129 and a copy of the Notice of Action I-797.

Maximum 6 years

  • The H-1B category covers foreign nationals employed in specialty occupations that require a theoretical and practical application of highly specialized knowledge, as well as a bachelor’s degree or the equivalent in the field. 
  • Before applying for an H-1B visa, an employer must file a Labor Condition Application (LCA) with the Department of Labor (DOL) and certify that, among other things, the foreign national will be paid at least the prevailing wage for the proffered position. 

H-3 Visa

  • Form I-129 and Form I-797
  • Valid passport
  • Birth certificate
  • One photograph meeting the US Visa Digital Image Requirements
  • Documents which prove your intent to return to your home country such as a property deed, apartment lease, or future job contract

Maximum 2 years

  • Trainees must participate in structured training programs at US companies. 
  • The programs must incorporate theoretical and practical instruction, and may not consist solely of on-the-job training. 
  • The training must be unavailable in the foreign national’s home country, and the skills acquired must apply to work outside the United States. 

L-1 Visa

  • Documentation verifying the corporate relationship between the U.S. company and the foreign company
  • Documentation verifying capitalization structure of the company
  • Detailed job description and requirements for the position
  • Documentation proving that you have worked in the foreign company for a continuous period of over one year in the preceding three years in an executive or managerial capacity
  • Copies of applicable business permits/licenses and registrations
  • DOS Form DS-160, Nonimmigrant Visa Application.
  • A copy of your passport which is valid for at least six months beyond the period of stay in the U.S
  • Two identical color photographs
  • Resume

L-1A (up to 7 years)


L-1B (up to 5 years)

  • L-1 visas may be issued to foreign nationals who are employed abroad in executive or managerial positions, or who hold positions involving specialized knowledge in the company’s procedures, processes, services and/or products. 
  • The L-1 beneficiary must be physically outside of the United States during the required one continuous year of employment. 
  • The petitioner and the beneficiary must meet all requirements, including the one year of foreign employment, at the time the petitioner files the initial L-1 petition. 

O-1 Visa

  • A written consultation with a peer group in your area of ability
  • A copy of your employment contract
  • Evidence that you have received a major internationally recognized award, such as a Nobel Prize, or copies evidencing the following (Non-exhaustive List):
  • Receipt of nationally or internationally recognized prizes or awards for excellence in the field of endeavor
  • Membership in associations in the field which require outstanding achievements as judged by recognized international experts
  • Published material in professional or major trade publications or newspapers about you and your work in the field
  • A copy of your passport
  • Passport style photograph

3 years

  • The O-1 visa category is for persons of extraordinary ability in the sciences, arts, education, business or athletics. 
Onboard employees in days, anywhere in the world

Value Added Tax (VAT) in Guam

  • Guam is to launch a 2% General Sales Tax on the provision of goods and services from 1 January 2019. 
  • Financial Services will be exempted from the new consumption tax.

General Sales Tax

Standard Rate

Group 1083

2%

Exempt

Group 1083

0%

New call-to-action

Mandatory Benefits in Guam

  • These are mandatory benefits as postulated by law
  • These include probationary period, public holidays, maternity leave, paternity leave, overtime pay.
  • Statutory benefits also include social security benefits
Tap the world's talent pool

Mandatory Benefits overview

  • Probationary period

  • Public Holidays

  • Maternity Leave

  • Overtime Pay

  • Social Security Benefits

Payments And Invoicing

  • Guam income tax returns are filed under the same rules, and using the same forms, applicable in the United States, but they are filed with the government of Guam instead of with the US Internal Revenue Service. 
  • Residents of Guam must report their US income on their Guam return, and residents of the United States must report their Guam income on their US return. 
  • Income taxes withheld on Guam wages offset Guam income reported on a US return, and vice versa. Estimated tax payments are filed with Guam or the United States, depending on where a taxpayer resides on the date the payment is due. 
  • Self-employment taxes are paid to the US Internal Revenue Service. 
  • If a nonresident alien is not engaged in a Guam trade or business and if all of the tax owed on Guam-source income is withheld, the nonresident alien is not required to file a tax return.
  • Nonresidents must file tax returns if they are engaged in a trade or business in Guam, even if they report no income from the business. 
  • Individuals not engaged in a Guam trade or business must file returns if they have any Guam-source income on which all of the tax due is not withheld. 
  • Nonresident employees subject to Guam income tax withholding must file tax returns by 15 April. Other nonresidents must file returns by 15 June.

Payroll Accrual in Guam

Dont lose your competitive advantage

Payroll Accruals Additional Information

    Employment Accruals
Maternity Leave Maternity leave shall not exceed twenty (20) days, encompassing the date of childbirth or adoption. This equals 5.47% (20/365 days)
Paternity Leave Paternity leave shall not exceed twenty (20) days, encompassing the date of childbirth or adoption of a child(ren) five (5) years old or younger. This equals 5.47% (20/365 days)
Overtime Employees who work overtime are eligible to receive 1.5 times the regular wage Subjective
Social Security Employers must contribute 6.2% to OASDI and 1.45% to Medicare This equals 7.65% of annual income

Accrued Benefits in Guam

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

No evidence of statutory requirement

0%
Vacations %

Employees are entitled to 13 days of annual leave (3.57% of annual salary)

3.57%
Notice %

Employees are entitled to 2 weeks of notice after one year of service (2.74% of annual salary)

2.74%
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per anum are equal to 6.31%

6.31%

Why use Global Expansion to hire in Guam

Establishing a branch office or subsidiary in Guam can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Guam labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Guam law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Guam. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Guam Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

New call-to-action

Ready to hire anywhere in the world?

Grow your team the right way with
Global Expansion.

Request a Proposal