Caps for social condition
Following the publication of the extension order for comprehensive pension insurance in the economy, as of 2008, the employer is obligated to insure every employee in pension insurance/ insurance management.
In addition, the employer is obligated to contribute to the severance pay fund of the employee.
Minimum Wage
By law, employees are entitled to a salary payment that is not less than the minimum wage in force in the State of Israel and is updated from time to time.
Maternity Leave (birth and parenthood period) for Women and Men
A worker who is on maternity leave (a.k.a. birth and parenthood period) does not receive a salary from her employer.
As a substitute for her salary, she is entitled to maternity allowance from the National Insurance Institute, which serves as compensation for her loss of income during the period in which she did not work due to birth.
Cap for foreign expert
A foreign expert is employed at a high salary due to the lack of experts with the unique knowledge he brings with him, while foreign workers are employed in Israel for low salary and in occupations that are not favored by the country’s citizens
Charging benefit value for employees activity days
What does the law state in regards to benefit value of company events that were held and financed by the employer?
Generally, in cases where the “best interests of the employer” overrides the “best interests of the employee”, the employer will not charge any value from employees who participated in the activity.
The Supreme Court Rules on Sales Tax
Something monumental has just occurred regarding the expansion of the sales tax net which will now capture many more businesses, including those based in Israel and selling to US clients. Such businesses may need to increase the overall charge for their product to include sales tax as well as carry the burden of collecting and reporting the tax.
Basics of U.S. Sales Tax Regulations
While the concept of U.S. sales tax is similar to Israeli VAT regulations, the actual implementation and definitions are vastly different. For starters, unlike VAT which falls under one tax jurisdiction in Israel, sales tax in the U.S.
GDPR Overview
On 25 May 2018 the General Data Protection Regulation (“GDPR”) will come into effect, replacing the EU Data Protection Directive with new, sweeping legislation, fundamentally changing EU law with regard to protection of personal data.
Economic Nexus Update
Due to the fast evolving legislation surrounding economic nexus and sales tax, we have put together the below summary to get you up to speed on the recent changes that may affect your business’s compliance.
Franchise Tax
Franchise tax is a tax charged by some US states to corporations with a nexus (aka a filing obligation) with those states. The common feature of a state’s franchise tax is that it is not based on income. Rather, the typical franchise tax calculation centers around the “net worth” of the taxpayer.