Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
USD $ (US Dollar)
Employer contributions
~7.65% FICA (same as US federal)
Minimum wage
USD 9.25/hour (Guam minimum wage 2024)
Payment frequency
Bi-weekly
Calendar year (Jan 1 - Dec 31)
Capital
Hagatna
Timezone
ChST (GMT+10)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~USD 5,383 total
/month
For a gross salary of
USD 5,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~7.65% FICA (same as US federal)
Mandatory extras
Annual Bonus
Monthly admin
Bi-weekly payroll - FICA deposits - quarterly 941 - annual W-2 by Jan 31
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~USD 5,383 total
Example gross salary
USD 5,000 gross/month
~USD 3,700 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~USD 383 FICA
Employer contributions on that salary
Employer contributions
~7.65% FICA (same as US federal)
Employee contributions
~7.65% FICA + Guam income tax (mirrors US federal rates)
Total cost above gross
~7.65% FICA + Guam income tax
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~USD 3,000
Per month
Hagatna
USD 3,500 - 10,000
~30%
Tamuning
USD 3,000 - 9,000
~15%
Monthly gross. National average salary per year:
~USD 36,000
Minimum wage
USD 9.25/hour (Guam minimum wage 2024)
Paid:
Hourly
Extra pay
Annual Bonus
Discretionary
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
Same graduated rates as US federal income tax applied under Guam Mirror Code
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Quarterly 941 + monthly deposits
Social security payments
April 15 (Guam Form 1040)
Income tax
By January 31
Employee tax certificate
Guam W-2
April 15
Annual return
Guam Form 1040
Late payment penalties
Late FICA: 2-15%; late Guam tax: 5-25% penalty
Who collects what
Guam DRT
Guam income tax (Mirror Code)
IRS / SSA
Federal FICA
Guam Department of Labor
Labour law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
5 days/year (1st yr) up to 15 days (10+ yrs)
Public holidays
~13 public holidays (federal + Guam)
Sick leave
Sick Leave
5 days/year (1st yr) up to 15 days
Maternity leave
12 weeks FMLA (unpaid) + Guam Temporary Disability Insurance
Guam TDI covers partial maternity pay
The contracts you can use, and what ending an employment relationship costs.
Permanent
Regular Employment (Permanent)
Fixed term
Fixed-Term Contract
Independent contractor
Independent Contractor
Collective agreements
Collective Bargaining Agreement
Ending employment
Severance Pay
How it is calculated
Per Guam law; discretionary unless contract specifies
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Guam Mirror Code Dual Filing
Risk Level: HIGH
Guam uses a 'mirror code' - federal tax law applies but taxes are paid to Guam rather than the IRS. Employers must file both federal FICA and Guam income tax obligations. Non-Guam employers who remit to IRS instead of Guam DRT create misallocation issues.
Military Contractor Employment
Risk Level: HIGH
Guam hosts major US military installations. Military contractor employment creates complex jurisdiction questions between federal contractor rules and Guam labour law.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.