* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Washington, D.C.
Currency

United States Dollar ($)

Timezone

EST, CST, MST, PST (GMT -5/6/7/8)

Payroll
Bi-weekly
Employment Cost

9.5% - 12.5%

Annual Leave

10 days

In-demand Specialties*
Information Technology, Construction, Drink Manufacturing

The Ultimate Guide to Hiring Employees in The United States

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-The United States-guide

Key Considerations Before Hiring In The United States

Employing in The United States requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in The United States with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in The United States quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Comprising approximately 5% of the global population, the United States stands as one of the world's largest economies and holds a prominent position in international trade. A notable 20% of Fortune Global 500-listed companies are situated in the USA, playing a significant role on the global stage.

The American economy boasts an advanced and remarkable technology services sector, contributing to 80% of the nation's overall output.

With abundant natural resources, advanced physical infrastructure, and a well-educated and skilled workforce, the U.S. maintains its standing as a major economic force worldwide. The country's workforce exhibits a diverse range of skills and experiences across various regions.

Capitalising on strategic time zone positioning, U.S.-based businesses seeking global expansion benefit from the ability to operate 24/7 by employing individuals in different time zones, enhancing their overall business efficiency.

playroll-good-to-know

Fundamental Aspects of Employment in The United States

In the United States, employment agreements assume various formats since there are no specific regulations mandating written documentation to be valid. However, certain states have enacted wage theft laws requiring employers to communicate basic employment terms to their employees in writing. These include:

  • Identification of both parties
  • Designated workplace and working hours
  • Job roles and responsibilities
  • Basic salary (including compensation and benefits)
  • Total number of holidays
  • Reasons for potential employment termination

Probationary Period in The United States

The U.S. lacks a mandated minimum probation period, but employers can set a period between 60 to 90 days. Formal probation periods are uncommon due to at-will employment, allowing employers to terminate without cause, notice, or severance at any time.

Working hours in The United States

The Fair Labor Standards Act (FLSA) does not specify weekly work hours for employees 16 and older. However, OSHA suggests a maximum of 8 consecutive hours a day for five days a week, with an 8-hour rest. Weekly, a day of rest is mandated, and those working over 4 hours daily should have a 10-minute break per hour worked.

Overtime in The United States

Although there is no limitation on working hours, the Fair Labor Standards Act (FLSA) mandates that employees who work beyond 40 hours per week must be compensated with overtime pay at a rate of 1.5 times their regular hourly wage.

Navigating Key Aspects of Payroll in The United States

the US has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 October - 30 September

Fiscal Year in The United States

1 October - 30 September is the 12-month accounting period that businesses in The United States use for financial and tax reporting purposes.
bi-weekly

Payroll Cycle in The United States

The payroll cycle in The United States is usually bi-weekly, with employees being paid every other week.
7.25 USD p/h

Minimum Wage in The United States

The minimum wage for employees in The United States is typically 7.25 USD per hour, amounting to ~1,160 USD per month for a typical 40 hour work week.

Minimum wages and salaries in The United States

The federal minimum wage in the United States stands at 7.25 USD per hour, but approximately 30 out of 50 states have minimum wage laws that surpass this federal standard. In cases where an employee falls under both state and federal minimum wage regulations, the employee is entitled to receive the higher wage.

Bonus Payments in The United States

At present, the United States does not require 13th-month payments.

Comprehensive Overview of Employment Taxes in The United States

Understanding the tax obligations for both employers and employees is crucial when operating in The United States's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in The United States.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 9.5% - 12.5% on top of the employee salary in The United States.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In The United States, the typical estimation for employee payroll contributions cost is around 13.65%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The federal minimum wage in the U.S. is set at 7.25 USD per hour or 1,160 USD per month. Individual states may have their respective minimum wage laws.

Tax Rate Income Bracket

Pension in The United States

Social Security in the U.S. serves as the old-age retirement pension, becoming available at 62 with a 5-6% pension reduction. A minimum of 10 years of service is required, and the federal government calculates benefits based on the highest 35 years of earnings.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in The United States tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in The United States

When it comes to terminating employment in The United States, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

When terminating an employee, employers must adhere to federal, state, and city ordinances. Termination expenses may encompass compliance with the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), which is a federal law enabling employees to maintain health insurance coverage during unemployment.

Notice Period

As the United States follows “at-will” employment relations, either party may terminate the agreement without cause at any given time. Nevertheless, it is customary that they provide a two-week notice before termination.

Severance Pay

The United States does not have mandated statutory severance provisions.

Annual Leave Entitlements and Company Policies in The United States

The annual leave entitlement in The United States is 10 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in The United States

The United States observes 11 official national public holidays annually. Additionally, individual states have the authority to designate additional holidays beyond those mandated by the federal government. The national holidays recognised by the federal government are:

Holiday Date

Paid Time Off in The United States

Maternity Leave in The United States

Paternity Leave in The United States

Sick Leave in The United States

Parental Leave In The United States

The United States's Benefits Built Into Playroll

Competitive benefits package in The United States

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in The United States's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In The United States

Make your benefits package in The United States a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in The United States

Playroll allows you to provide localized benefits for employees in The United States within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in The United States create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for The United States

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in The United States.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!