Jobs and income in the United States: wages, withholding, forms and worker protections

1. Purpose, sources and limits

This guide explains how to read the U.S. labor market, compare wages and income, understand payroll, contributions, forms and key protections. It is for employees, freelancers, French expatriates, recruiters and investors who need to interpret U.S. data without importing French assumptions.

Reference sources include BLS for employment and wages, DOL for federal labor standards, IRS for tax withholding, SSA for Social Security, USCIS for I-9 and EEOC for anti-discrimination. Numbers are not promises. They vary by state, metro area, experience, industry and status.

2. Labor market: what BLS measures

The Bureau of Labor Statistics produces key U.S. labor statistics. Current Employment Statistics measures nonfarm payroll jobs from employers. Current Population Survey interviews households and supports unemployment measures. U-3 is the most cited official unemployment rate, while U-6 is broader.

BLS data is organized by NAICS industries and SOC occupations. OEWS provides wage and employment estimates by occupation, state and metro area. The Occupational Outlook Handbook explains duties, education and outlook. These tools matter before comparing a job offer.

3. Work income and household income

Hourly wage, annual salary, gross income, net income and household income are different concepts. A high annual salary can produce a very different net income depending on FICA, federal tax, state tax, health insurance, retirement and local housing costs.

Census median household income describes the household in the middle of the distribution. It is not the same as an individual average wage. Purchasing power differs sharply across California, Texas, Florida, New York, the Midwest and rural areas. Always compare nominal pay with local cost of living.

4. Payroll contributions: FICA and Additional Medicare Tax

FICA includes Social Security and Medicare. The classic employee rate includes 6.2 percent Social Security and 1.45 percent Medicare, for 7.65 percent, with a similar employer share. The Social Security wage base has an annual cap to verify with IRS or SSA. Medicare does not follow the same cap.

Additional Medicare Tax of 0.9 percent may apply above income thresholds, including $200,000 for single and $250,000 for married filing jointly under IRS rules. Self-employed workers follow SECA and self-employment tax instead.

5. Federal tax: W-4, W-2 and filing

Form W-4 is completed at hiring so the employer can withhold federal income tax. It should be reviewed after marriage, a second job, a child, freelance income or investment income. Too little withholding can create a balance due.

Form W-2 is issued by the employer before the end of January to summarize annual wages and withholding. It is used to prepare Form 1040. A refund is not a bonus. It is often an overpayment. IRS Free File and e-file can simplify filing for eligible taxpayers.

6. Minimum wage, overtime and FLSA

The Fair Labor Standards Act sets the federal framework for minimum wage, overtime and certain duties. The federal minimum wage should be checked on DOL, because states and cities often require more.

For non-exempt employees, hours above 40 in a workweek are generally paid at 1.5 times the regular rate. Exempt and non-exempt status depends on salary and duties tests. Misclassification is common and costly.

7. Employment eligibility: Form I-9

Every employer must verify identity and work authorization for each employee using Form I-9. The employee presents List A documents or a List B plus List C combination. The employer cannot arbitrarily demand specific documents if valid documents are presented.

E-Verify is an electronic system that may be optional or mandatory depending on federal contracts or state rules. I-9 should not be confused with I-551, the Green Card. Noncompliance can create employer penalties.

8. Social Security Number

The Social Security Number is used for employment, credit, tax filing and benefits. Citizens, permanent residents and authorized workers may obtain one through SSA procedures. It should not be shared unnecessarily.

People who cannot obtain an SSN but must file taxes may need an ITIN. An ITIN does not authorize employment. That distinction matters for spouses, investors and nonresidents.

9. Unemployment and employer health coverage

Unemployment Insurance is a federal-state system. Eligibility, amounts and duration vary by state. A maximum of 26 weeks is common but not universal. Eligibility depends on why employment ended and prior wages.

COBRA may allow temporary continuation of employer health coverage after job loss, often up to 18 months, but the full cost can shift to the worker. The ACA Marketplace may be an alternative depending on income, family and state.

10. Fifty occupations: indicative medians and BLS profiles

The profiles below use indicative medians and BLS OOH links. A median means half earn more and half earn less. Actual pay varies by state, city, experience, education, employer, schedule and economic cycle.

Loading 50 occupations...

11. Main forms and notices

12. Typical path for a newly hired employee

The path begins with the job offer and I-9 verification. The employee completes W-4, provides payroll information, receives a first pay stub and then a W-2 in January. Annual tax filing follows in spring.

1. Job offer and acceptance.
2. Form I-9 within required timing.
3. Form W-4 and payroll setup.
4. First pay stub and withholding review.
5. W-2 in January and Form 1040 filing.

13. Institutional resources

15. Frequently asked questions

16. Official links