USA
The United States of America needs little introduction. World-leading exports and innovation strengthen the nation’s economy in technology, sports, arts, culture, media, and music.
Home to Hollywood, Silicon Valley, and iconic brands like Apple, Google, Ford, Nike, and Adidas, the United States present’s one of the world’s most attractive recruitment pipelines. The country’s population is highly educated, driven to succeed, and open to remote work.
With The Great Resignation taking hold, the trend toward flexible, hybrid, and remote work continues in the United States. Employer's keen eye for experienced foreign talent should consider leveraging this labor movement. Offering a competitive benefits package can provide firms outside of the US a real advantage over regional rivals.
There are relatively few statutory protections for yearly leave, sick leave, social security, and healthcare in the US. Businesses that can offer these benefits as part of a holistic rewards strategy focused on the employees' needs will have great success luring and keeping top-tier US prospects.
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Why work in
USA
?
The United States is the largest economic power in the world in terms of gross domestic product (GDP), and historically, it has ranked among the top nations in terms of GDP per person. The United States produces almost one-fifth of the world's economic output despite having fewer than 5% of the world's population.
One of the largest industries is the production of transportation equipment. Despite a slump in the early 21st century, computer and telecom companies are still robust. Other significant industries include biotechnology, health services, food items, chemicals, electrical and nonelectric machinery, energy, insurance, and medicine production.
Through the Gloroots’ Recrew platform, you can discover amazing talent in the United States.
Grow your team in
USA
Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in the United States must have a local legal organization and use local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in the United States makes compliance with employment laws demanding.
With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.
Risks of misclassification
USA treats contractors, sole proprietors, self-employed individuals and full-time workers differently and there are significant risks associated with misclassification.
Employing in
USA
The United States labor laws are outlined in numerous federal and state acts to protect employees' rights and prevent unfair employment practices.
These include:
- Title VII (of the Civil Rights Act)
- The Americans with Disabilities Act
- The Age Discrimination in Employment Act
- The Equal Pay Act
- The Fair Labor Standards Act
- The Family and Medical Leave Act, and
- The National Labor Relations Act, etc.
Numerous individuals are hired without a valid employment contract because having one is not legally required. Instead, the only basis for their employment is a written offer of employment that outlines the fundamental terms and circumstances that govern their working relationship. However, it is typical for businesses to use a written employment contract when appointing workers to important positions
In the United States, taxes are levied at the federal and state levels. State and federal taxes are distinct from one another, and each is able to levy taxes on its own. State taxes are not a matter for the federal government to meddle in. Each state has a unique tax structure distinct from the other states.
Severance pay is typically one or two months of salary for every year of employment in the United States, while the Fair Labor Standards Act does not mandate it.
It’s important for employers to understand the intricacies of these programs before making a hire.
This might sound overwhelming—but it doesn’t have to be. A solution like Gloroots eliminates the barriers for you. With Gloroots’ Employer of Record offering, hiring and managing employees globally is a piece of cake.
Get an overview of what you need to know when hiring in the United States.
Legal aspects of employing in
USA
Working hours
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Payroll
Payroll Cycle:
Each state has its laws governing the frequency of payroll. In most states, paying employees once or twice a month is required. In some circumstances, weekly payment may be necessary.
Minimum Wage:
The federal minimum wage is set at USD 7.25 per hour as of 2022. Under state law, employees may be entitled to higher salaries, as many states have minimum wage requirements.
Sick Pay:
The Family and Medical Leave Act (FMLA) permits workers who qualify to take up to twelve weeks of unpaid sick time per year. The worker is shielded from termination during this time.
Employees may request leave for the following reasons:
- Giving birth and caring for a newborn child
- Adoption of a child
- To take care of an immediate family member who is seriously unwell
- Personal injury or illness
Employees must have worked for the employer for at least a year, putting in at least 1,250 hours, in order to be eligible for medical leave. Additionally, work had to be done at a location with more than 50 personnel that was applicable to a 75-mile radar.
In accordance with state or municipal legislation relevant to the location where they conduct business, employers may be required to offer sick pay.
Tax
Tax and Social security contribution:
Employer Tax :
- 21% corporate tax
- each state levies different VAT rates
Social Security :
At least 13.65% of an employee’s salary, including:
- 6.2% OASDI (Old-Age, Survivors, and Disability Insurance) on income up to USD 147,000
- 1.45% Medicare
- 6% FUTA (federal unemployment tax) on first USD 7,000 additional state unemployment taxes, rates vary between states
- further contributions may be levied at the state level
Employee Tax :
Individual income is taxed at the federal and state level.
Federal income tax rates range from 10% to 37% *
Social Security :
7.65% to 8.55% of employee’s salary, including:
- 6.2% OASDI on income up to USD 147,000
- 1.45% Medicare
- additional 0.9% Medicare on income exceeding certain thresholds
Separation
Notice Period:
Employers are only required to provide 60 days' notice in specific collective dismissal situations as specified under the Worker Adjustment and Retraining Notification Act (WARN).
Probation period:
The probationary period should not exceed 60-90 days.
Employment Termination and Severance:
In the United States, labor law permits so-called "at-will" termination, which means that employers can fire employees at any time, for any reason, as long as the reason for the firing is not illegal, such as discrimination or whistleblowing. When ending an employment relationship, neither employers nor employees are required to adhere to a notice period.
Employers are only required to provide 60 days' notice in specific collective dismissal situations as specified under the Worker Adjustment and Retraining Notification Act (WARN).
Severance pay is not required unless the employee's employment contract or any applicable collective agreement is provided. The majority of businesses, however, base their decision to provide severance compensation on the employee's length of service.
