The United States is the world’s largest economy and one of the most attractive destinations for global expansion. It offers access to a diverse and highly skilled workforce, with leading industries in technology, financial services, healthcare, life sciences, manufacturing, media, and professional services.

Talent hubs include New York (finance, media, consulting), San Francisco & Silicon Valley (technology, AI, venture capital), Boston (biotech, healthcare, higher education), Chicago (logistics, finance, and professional services), and Austin (tech and startups). With its world-class universities such as Harvard, MIT, Stanford, and UC Berkeley, the U.S. produces top talent across all major sectors.

At the same time, hiring in the U.S. comes with significant complexity. Unlike many countries, employment law is largely governed at the state level, leading to varying rules on minimum wage, paid leave, termination, and benefits. Employers must also manage federal and state payroll taxes, employee benefits, and strict rules around employee classification (W-2 vs. 1099).

Setting up a U.S. entity requires incorporation at the state level, employer tax registrations with the IRS and state tax agencies, and compliance with federal and state labor laws. This process can be lengthy and costly, especially for companies testing the market.

With Gloroots as your Employer of Record (EOR), you can hire employees in the U.S. in weeks. Gloroots manages payroll compliance, employee benefits, and global compliance while ensuring full adherence to both federal and state employment laws.

What are the key facts about the U.S. economy and workforce?

The United States has the largest economy in the world, accounting for nearly a quarter of global GDP. It is a hub for innovation, entrepreneurship, and global trade, with leadership in technology, finance, life sciences, aerospace, manufacturing, and creative industries.

The U.S. workforce is both large and diverse, with more than 165 million active workers. It is also one of the most productive globally, supported by an ecosystem of elite universities, advanced research institutions, and leading corporations such as Apple, Microsoft, Google, Pfizer, JPMorgan Chase, and Tesla.

The country also attracts global talent through its highly international workforce, particularly in tech, finance, and academia. English is the primary language of business, but the multicultural nature of the U.S. workforce means that companies can also access multilingual professionals across major cities.

However, the U.S. labor market is decentralized, with federal laws providing a baseline and state laws adding further obligations. This creates complexity in areas like minimum wage, paid leave, overtime, and employee classification. Employers must carefully navigate both levels of compliance, making global compliance essential for foreign companies expanding into the U.S.

Data Snapshot: U.S. Workforce

Ready to tap into the U.S.’s world-class workforce? Hire employees in the United States with Gloroots and ensure full compliance with federal and state laws.

What is the work culture and talent pool like in the U.S.?

The United States has a diverse and dynamic work culture, shaped by its entrepreneurial spirit, innovation-driven economy, and multicultural workforce. American workplaces often emphasize individual performance, meritocracy, and goal orientation, but collaboration and teamwork are also highly valued, particularly in modern industries like technology and creative services.

Work culture in the U.S. varies by industry and region. Startups and tech companies in Silicon Valley and Austin adopt flat, agile structures, while traditional industries like finance and law in New York or Chicago tend to follow hierarchical and structured models. Across sectors, employees expect transparency, professional development opportunities, and competitive benefits.

Flexibility is a key theme in today’s U.S. work culture, with remote and hybrid models widely adopted since the pandemic. Retention strategies often include wellness programs, equity compensation, and flexible work arrangements, as employees place high value on work-life balance alongside career growth.

For employers, the U.S. talent pool is one of the deepest in the world, offering expertise across STEM, finance, healthcare, media, and professional services. Major cities act as global magnets for talent, drawing both domestic graduates and international professionals.

Data Snapshot: U.S. Talent Pool

Want access to America’s deep and diverse talent pool? Hire employees in the United States with Gloroots for fast, compliant hiring across all 50 states.

Q: What is the process of setting up an entity in the United States?

Setting up a business entity in the U.S. requires navigating federal, state, and sometimes local regulations. Unlike many countries with a single national system, the U.S. requires incorporation at the state level, followed by tax and employer registrations at both the federal (IRS) and state revenue agencies.

The most common entity type for foreign companies is a Limited Liability Company (LLC) or a Corporation (C-Corp or S-Corp). Each has different tax and compliance obligations, with Delaware, Nevada, and Wyoming being popular incorporation states due to business-friendly laws.

Beyond incorporation, employers must register for federal employer identification (EIN), state tax IDs, and set up payroll withholdings for federal and state income taxes, Social Security, and Medicare. Employers must also comply with state-level labor laws (e.g., minimum wage, paid leave, termination rules), which vary significantly across the 50 states.

Entity setup typically takes 4–8 weeks, but employment law compliance can extend timelines. For companies testing the U.S. market or hiring small teams, entity setup can be cost- and resource-intensive. By contrast, Gloroots as an Employer of Record (EOR) enables you to hire employees in the U.S. within weeks, while Gloroots handles payroll, tax compliance, and benefits across multiple states.

Step-by-Step Process of Entity Setup in the U.S.

1. Choose a Business Structure
   • Common options: LLC, C-Corp, or S-Corp.
   • Select state of incorporation.
2. File Incorporation Documents
   • Submit Articles of Incorporation/Organization to the Secretary of State.
3. Obtain an Employer Identification Number (EIN)
   • Register with the IRS for federal tax purposes.
4. Register with State Revenue Agencies
   • Obtain state tax IDs for income tax and employment taxes.
5. Employer Registrations
   • Register for unemployment insurance and workers’ compensation in the chosen state.
6. Payroll Setup
   • Set up payroll with federal (IRS) and state tax withholdings.
   • Deduct Social Security, Medicare, and state-specific taxes.
7. Compliance Setup
   • Draft compliant employment contracts.
   • Apply federal and state labor law (minimum wage, overtime, leave).

Entity Setup: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

U.S. entity setup is state-driven and compliance-intensive, requiring multiple registrations and ongoing filings. Missteps in payroll or state labor law compliance can lead to IRS penalties, lawsuits, or reputational risk.

With Gloroots as your EOR in the U.S., you can:

• Hire in weeks without entity setup.
• Stay compliant with federal and state labor laws.
• Avoid the burden of multi-state payroll and tax filings.

Gloroots makes hiring in the U.S. fast, compliant, and cost-efficient.

Q: What are the main benefits of using Gloroots as an Employer of Record in the U.S. vs setting up your own entity?

The United States is one of the most attractive yet complex hiring markets in the world. Employment laws vary not only at the federal level but also across all 50 states, covering areas such as minimum wage, overtime, paid leave, unemployment insurance, and workers’ compensation. Employers must also comply with multi-state payroll taxes and strict rules around employee vs. contractor classification (W-2 vs. 1099).

Setting up your own U.S. entity provides long-term independence but requires 4–8 weeks of incorporation and registrations, plus significant ongoing compliance. For companies testing the market or hiring smaller teams, this can be a costly burden.

By contrast, with Gloroots as your Employer of Record (EOR), you can hire employees in the U.S. in weeks instead of months. Gloroots becomes the legal employer, handling payroll, benefits, and compliance, while you retain full control over employee work and performance.

Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

U.S. hiring is highly decentralized and compliance-intensive. Employers must manage multi-layered payroll taxes, state-specific labor laws, and strict worker classification rules.

With Gloroots as your EOR in the U.S., you can:

• Hire in weeks without entity setup delays.
• Stay compliant with federal and state employment laws.
• Avoid costly misclassification risks.
• Scale your U.S. workforce with predictable costs.

Gloroots makes U.S. hiring faster, safer, and cost-efficient.

Q: What are the key employment laws in the U.S. that employers should know?

Employment law in the U.S. is unique in that it operates at two levels — federal and state. Federal laws set a baseline, but states often add stricter rules covering areas like minimum wage, overtime, leave entitlements, and termination protections. Employers must navigate this patchwork of regulations, which can vary significantly across all 50 states.

The U.S. follows the principle of “at-will employment”, meaning either employer or employee can terminate the relationship at any time, with or without cause, provided it is not discriminatory or in violation of contract. However, exceptions apply at the state level, and collective bargaining agreements (CBAs) can override at-will provisions.

Compliance requires issuing written contracts or offer letters, applying correct federal and state minimum wage laws, tracking working hours, ensuring overtime compliance, and providing mandatory benefits such as Family and Medical Leave Act (FMLA) protections where applicable.

With Gloroots as your Employer of Record (EOR), you ensure compliance with both federal and state-level requirements, eliminating the risk of fines, lawsuits, or employee disputes.

Key Employment Law Provisions in the U.S.

• Employment Contracts
  • Written contracts are not legally required but strongly recommended.
  • Offer letters must include wage, role, and key terms.
  • CBAs or state laws may impose stricter obligations.
• Working Hours
  • Standard: 40 hours per week (Fair Labor Standards Act - FLSA).
  • Beyond 40 hours = overtime, unless exempt (salaried professionals, executives).
• Overtime
  • Non-exempt employees must receive 1.5x pay for hours over 40/week.
  • Some states (e.g., California) require daily overtime after 8 hours/day.
• Minimum Wage
  • Federal: $7.25/hour.
  • State/City minimum wages are often higher (e.g., California $15.50/hour, NYC $15/hour).
• Family & Medical Leave (FMLA)
  • Up to 12 weeks of unpaid, job-protected leave for eligible employees.
  • Many states (e.g., California, New York) mandate paid family leave.
• Annual Leave & Holidays
  • No federal requirement for paid vacation or holidays.
  • Benefits are employer-determined, often included for competitiveness.
• Sick Leave
  • No federal mandate, but many states/cities (e.g., California, New York) require paid sick leave.
• Maternity & Paternity Leave
  • Covered under FMLA (unpaid); state laws may provide paid benefits.
• Termination Rules
  • Generally “at-will,” but unlawful dismissal includes discrimination, retaliation, or breach of contract.
  • Notice periods are not mandatory unless under contract/union agreement.

Employment Law Compliance: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

U.S. employment laws are fragmented across states, making compliance complex and resource-intensive. Missteps can lead to lawsuits, back pay claims, and fines.

With Gloroots as your EOR in the U.S., you can:

• Guarantee compliance with federal and state-specific rules.
• Ensure lawful contracts, payroll, and overtime compliance.
• Avoid wrongful termination and misclassification disputes.

Gloroots makes U.S. employment compliance seamless, scalable, and risk-free.

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Q: What are the types of work visas in the U.S., and how can Gloroots help with immigration?

The United States attracts global professionals across technology, healthcare, finance, and academia, but its immigration system is complex and highly regulated. Employers must sponsor foreign workers through specific visa categories, each with unique eligibility criteria, application processes, and caps.

Navigating this process requires strict compliance with U.S. immigration law, coordination with the U.S. Citizenship and Immigration Services (USCIS), and adherence to deadlines for visa petitions and renewals. Mistakes can lead to application denials, delays, or penalties.

With Gloroots as your Employer of Record (EOR), immigration is simplified. Gloroots supports employers and employees through the full immigration lifecycle — from visa sponsorship and compliance monitoring to extensions and renewals. By handling the legal and administrative complexities, Gloroots allows you to focus on onboarding top global talent.

Common U.S. Work Visa Types

• H-1B Visa (Specialty Occupations)
  • For skilled professionals in fields such as technology, engineering, finance, and healthcare.
  • Subject to an annual cap (lottery system).
• L-1 Visa (Intra-Company Transfer)
  • For managers, executives, or specialists transferring from a foreign branch to a U.S. office.
• O-1 Visa (Individuals with Extraordinary Ability)
  • For experts in fields such as science, education, business, or the arts.
• E-2 Visa (Treaty Investor/Employee)
  • For individuals from treaty countries investing in or employed by U.S. enterprises.
• TN Visa (NAFTA/USMCA Professionals)
  • For Canadian and Mexican citizens in designated professions.
• H-2B Visa (Temporary Non-Agricultural Workers)
  • For seasonal or temporary workers in industries such as hospitality or construction.

How Gloroots Supports Immigration

• Visa Sponsorship: Acts as the legal employer and facilitates sponsorship of eligible visas.
• Immigration Compliance: Ensures applications meet USCIS and Department of Labor requirements.
• Renewals & Extensions: Tracks expiration dates and manages extension filings.
• Employee Mobility: Helps global employees transition smoothly into the U.S. workforce.
• Integration with EOR: Immigration services are combined with payroll, benefits, and HR compliance for seamless support.

Why This Matters

Securing a work visa in the U.S. requires time-sensitive applications, employer sponsorship, and ongoing compliance monitoring. Employers without U.S. entities often struggle to sponsor visas independently.

With Gloroots as your EOR in the U.S., you can:

• Sponsor and onboard global talent through compliant visa programs.
• Eliminate administrative burden with end-to-end immigration management.
• Ensure employees stay compliant throughout their U.S. assignment.

Gloroots makes U.S. immigration seamless, compliant, and employee-friendly.

Q: What are the risks of misclassification in the U.S.?

In the U.S., one of the biggest compliance challenges for employers is distinguishing between employees (W-2) and independent contractors (1099). Misclassification — treating an employee as a contractor to avoid payroll taxes or benefits — is heavily penalized by both the IRS and Department of Labor (DOL).

Federal agencies and state labor boards use different tests (such as the IRS 20-Factor Test, the DOL’s Economic Realities Test, and state-specific standards like California’s ABC Test) to determine classification. If a contractor is found to be functioning like an employee — working under company control, following set schedules, or providing core business services — they may be reclassified as an employee.

Misclassification can lead to back taxes, unpaid benefits, fines, lawsuits, and reputational damage. With Gloroots as your Employer of Record (EOR), companies avoid this risk. Gloroots ensures correct classification, issues compliant contracts, and manages all payroll taxes and benefits for employees.

Criteria That Trigger Misclassification in the U.S.

A worker is likely an employee (W-2) if they:

• Work under the company’s supervision and control.
• Follow a fixed schedule set by the company.
• Use company-provided tools and systems.
• Provide services integral to the company’s core business.
• Cannot hire their own staff or subcontractors.
• Receive regular wages instead of project-based pay.

Penalties for Misclassification in the U.S.

• Back Taxes & Payroll Penalties: Employers may owe unpaid income tax, Social Security, and Medicare contributions.
• Benefits Liability: Misclassified employees may claim unpaid benefits such as overtime, healthcare, and retirement contributions.
• IRS & DOL Fines: Civil penalties range from hundreds to thousands of dollars per worker.
• State-Level Penalties: California and New York impose some of the strictest fines for misclassification.
• Legal Claims: Misclassified workers may sue for back wages, overtime, or wrongful termination.

Misclassification Risk: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

The U.S. has some of the strictest misclassification rules worldwide, with overlapping federal and state enforcement. Penalties are severe and can retroactively apply to years of employment.

With Gloroots as your EOR in the U.S., you can:

• Eliminate W-2 vs 1099 misclassification risks.
• Ensure compliant payroll and benefits administration.
• Protect your company from IRS, DOL, and state penalties.

Gloroots makes U.S. hiring safe, compliant, and dispute-free.

Q: How does an EOR help you run payroll in the U.S.?

Payroll in the U.S. is one of the most complex in the world, because employers must comply with both federal and state-level tax and labor laws. Employers must calculate gross pay, withhold federal income tax, state income tax (if applicable), Social Security, and Medicare contributions, and remit employer payroll taxes to the IRS and state tax agencies.

Employers are also responsible for unemployment insurance contributions, workers’ compensation, and benefits administration, which vary by state. Payroll cycles are typically bi-weekly or semi-monthly, and employees must receive detailed pay stubs outlining gross pay, deductions, and employer contributions.

Failure to comply with payroll requirements can result in IRS penalties, state fines, or lawsuits from employees. With Gloroots as your Employer of Record (EOR), payroll is handled end-to-end. Gloroots ensures accurate tax withholdings, pays employer contributions, administers benefits, and files all necessary reports with federal and state agencies.

Key Payroll Compliance Requirements in the U.S.

• Payroll Cycle: Bi-weekly or semi-monthly (most common).
• Currency Requirement: All salaries must be paid in U.S. dollars (USD).
• Income Tax Withholding:
  • Federal tax withheld using IRS Form W-4 and IRS tax tables.
  • State taxes vary (e.g., California, New York require separate withholding).
• Social Security & Medicare (FICA):
  • Employer: 7.65% (6.2% Social Security + 1.45% Medicare).
  • Employee: 7.65% withheld.
• Unemployment Insurance (FUTA + SUTA):
  • Federal (FUTA): 6% on the first $7,000 of wages (credit reduction possible).
  • State (SUTA): Varies widely by state.
• Workers’ Compensation: Required at the state level; rates vary by industry.
• Benefits Administration: Employers often provide health insurance, retirement contributions (401k), and supplemental perks.

Payroll Management: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

Payroll in the U.S. requires precise coordination across federal and state systems, with multiple taxes, benefits, and compliance filings. Errors result in penalties, employee dissatisfaction, and reputational risk.

With Gloroots as your EOR in the U.S., you can:

• Guarantee accurate payroll tax withholdings and contributions.
• Ensure compliance with both IRS and state agencies.
• Offer competitive benefits without administrative burden.

Gloroots makes U.S. payroll accurate, compliant, and stress-free.

Q: How does tax compliance work in the U.S.?

Tax compliance in the U.S. involves federal, state, and local obligations, making it one of the most complex systems globally. Employers must withhold federal income tax, Social Security, and Medicare from employee wages, and remit employer payroll contributions. In addition, most states (and some cities) levy their own income taxes, unemployment insurance taxes, and payroll-related fees.

Employers must comply with reporting requirements such as filing quarterly Form 941 with the IRS, annual W-2 forms for employees, and state-specific filings. Mistakes in withholding or late submissions can lead to IRS penalties, interest charges, and reputational risk.

With Gloroots as your Employer of Record (EOR), all federal and state withholdings, employer contributions, and filings are managed seamlessly, ensuring full compliance across jurisdictions.

Federal Income Tax Brackets (2023, Single Filers)

Note: Rates differ for married couples and heads of household.

State & Local Taxes

• 41 states levy income tax; 9 states (e.g., Texas, Florida) do not.
• Rates vary widely (e.g., California up to 13.3%, New York up to 10.9%).
• Some cities (e.g., New York City) levy additional income taxes.

Payroll Taxes

• Social Security: 6.2% (employer) + 6.2% (employee) on wages up to $160,200 (2023).
• Medicare: 1.45% (employer) + 1.45% (employee); additional 0.9% surtax for high earners.
• Unemployment Taxes:
  • Federal (FUTA): 6% on first $7,000 in wages (reduced to 0.6% with state credit).
  • State (SUTA): Varies by state and industry.

Tax Compliance: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

The U.S. tax system is federal, state, and local, making compliance fragmented and complex. Employers must stay ahead of changing rules in multiple jurisdictions.

With Gloroots as your EOR in the U.S., you can:

• Ensure accurate withholdings and employer contributions.
• Stay compliant with IRS, state, and city tax agencies.
• Eliminate administrative burden and penalty risks.

Gloroots makes U.S. tax compliance transparent, accurate, and risk-free.

Q: What benefits and entitlements do employees in the U.S. receive?

Unlike many countries, the U.S. does not mandate extensive statutory benefits at the federal level. Instead, many benefits are employer-driven, which makes them a key factor in attracting and retaining top talent. Employers are required to provide certain statutory protections, such as contributions to Social Security and Medicare, unemployment insurance, and compliance with Family and Medical Leave Act (FMLA) provisions.

Beyond these minimums, U.S. employers are expected to provide supplemental benefits such as health insurance, retirement plans (401k), paid time off, and wellness programs. These perks are often the deciding factor for candidates, especially in competitive industries like technology and finance.

With Gloroots as your Employer of Record (EOR), you can offer employees in the U.S. both mandatory statutory benefits and market-competitive supplemental perks, without having to manage complex administration across multiple states.

Statutory Benefits in the U.S.

• Social Security & Medicare (FICA)
  • Funded through payroll contributions (7.65% employer + 7.65% employee).
• Unemployment Insurance
  • Employers contribute federal (FUTA) and state (SUTA) unemployment taxes.
• Workers’ Compensation Insurance
  • Mandatory at the state level, covering workplace injuries.
• Family and Medical Leave (FMLA)
  • Up to 12 weeks of unpaid, job-protected leave for eligible employees.
• Minimum Wage & Overtime
  • Federal minimum wage $7.25/hour; higher in many states.
  • Overtime pay of 1.5x after 40 hours/week (non-exempt employees).

Supplemental Benefits (Market Practice)

• Health Insurance (medical, dental, vision).
• Retirement Plans (401k with employer matching).
• Paid Time Off (PTO) — typically 10–20 days annually.
• Paid Holidays — ~10 days per year.
• Life & Disability Insurance.
• Equity/Stock Options in tech and growth companies.
• Wellness Programs & Flexible Work.

Benefits & Entitlements: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

The U.S. benefits landscape is employer-driven. While statutory protections are limited, employees expect competitive supplemental packages. Failure to provide these can impact talent acquisition and retention.

With Gloroots as your EOR in the U.S., you can:

• Guarantee compliance with statutory benefits.
• Provide health, retirement, and PTO packages that attract top talent.
• Streamline benefits administration across states.

Gloroots makes employee benefits in the U.S. compliant, competitive, and employee-focused.

Q: What’s involved in hiring and onboarding employees in the U.S.?

Hiring in the U.S. is decentralized and compliance-heavy, requiring employers to meet federal, state, and sometimes city-level requirements. While federal law sets baseline rules (e.g., minimum wage, nondiscrimination, Form I-9 eligibility verification), states and cities impose their own hiring, onboarding, and record-keeping obligations.

Employment contracts are not always legally required, but written offer letters and agreements are standard for clarity. Employers must collect employee documentation, set up federal and state tax withholdings (IRS W-4, state-specific forms), and complete Form I-9 (employment eligibility verification). Employees must also be registered with the appropriate state unemployment insurance and workers’ compensation programs.

Onboarding best practices include providing company policies (employee handbooks, anti-harassment training, health & safety compliance), enrolling employees in benefits, and setting up IT/equipment for remote or hybrid roles.

With Gloroots as your Employer of Record (EOR), you can onboard employees in the U.S. quickly and compliantly. Gloroots manages contracts, payroll setup, tax registrations, and benefits enrollment, ensuring a seamless employee experience across states.

Hiring & Onboarding Steps in the U.S.

1. Employment Contracts & Offer Letters
   • Offer letter with role, salary, benefits, and at-will terms.
   • Written employment agreements for certain roles (e.g., executives).
2. Employee Documentation
   • IRS Form W-4 for federal income tax.
   • State tax withholding forms (varies by state).
   • Form I-9 to verify employment eligibility (U.S. citizens and foreign workers).
3. Payroll Registration
   • Register employees for federal and state income tax withholdings.
   • Enroll employees in Social Security, Medicare, and unemployment insurance.
4. Benefits Enrollment
   • Health insurance, retirement (401k), PTO policies, supplemental perks.
5. Onboarding Orientation
   • Employee handbook, workplace policies, code of conduct.
   • Anti-harassment and workplace safety training (mandatory in some states).
   • IT setup and equipment handover.

Hiring & Onboarding: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

The U.S. onboarding process involves federal verification requirements, state tax registrations, and mandatory policy disclosures. Mistakes can lead to IRS penalties, fines for I-9 violations, or disputes with employees.

With Gloroots as your EOR in the U.S., you can:

• Issue compliant contracts and offer letters.
• Ensure timely payroll and benefits enrollment.
• Deliver a smooth and professional onboarding experience.

Gloroots makes hiring in the U.S. fast, compliant, and employee-friendly.

Q: How do you successfully manage a workforce in the U.S.?

Managing a workforce in the U.S. requires balancing compliance with employment laws and building a workplace culture that attracts and retains top talent. Since labor laws vary across federal, state, and local levels, employers must ensure compliance with minimum wage, overtime, leave laws, anti-discrimination protections, and employee classification rules.

Culturally, U.S. employees value meritocracy, transparency, and career progression opportunities. Companies that offer flexible work arrangements, professional development, and competitive benefits achieve stronger retention. The rise of remote and hybrid work models has made employee engagement, performance management, and wellness programs more important than ever.

To successfully manage teams across the U.S., employers should adopt a combination of compliance best practices (state-specific policies, HR documentation, and structured payroll) and people-first strategies (recognition programs, equity incentives, and career development).

With Gloroots as your Employer of Record (EOR), workforce management becomes simpler: Gloroots ensures full compliance with federal and state labor laws, while supporting you in creating attractive policies that resonate with U.S. employees.

Best Practices for Managing a Workforce in the U.S.

1. Ensure Compliance with Employment Laws
   • Track changes across federal and state minimum wage, overtime, and leave laws.
   • Avoid worker misclassification (W-2 vs 1099).
2. Support Work-Life Balance
   • Offer remote and hybrid work options.
   • Provide flexible PTO and wellness programs.
3. Offer Competitive Benefits
   • Health insurance, retirement (401k), PTO, and equity are standard expectations.
4. Invest in Professional Development
   • Training, mentorship, and tuition reimbursement programs help retain talent.
5. Foster Inclusive Culture
   • Build DEI (diversity, equity, inclusion) initiatives.
   • Ensure compliance with anti-discrimination laws under Title VII, ADA, and state laws.

Workforce Management: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

The U.S. offers access to a world-class workforce, but employers face challenges in navigating fragmented labor laws, multi-state compliance, and competitive employee expectations. Non-compliance risks lawsuits, fines, or reputational harm.

With Gloroots as your EOR in the U.S., you can:

• Stay compliant with federal, state, and local labor laws.
• Provide employees with competitive benefits and growth opportunities.
• Focus on engagement and retention, while Gloroots manages compliance.

Gloroots makes workforce management in the U.S. compliant, employee-focused, and retention-driven.

Q: What are the key steps and requirements in terminating employees in the U.S.?

The U.S. follows the principle of “at-will employment”, meaning an employer or employee may terminate the employment relationship at any time, with or without cause, provided it is not unlawful (e.g., discriminatory, retaliatory, or in breach of contract). However, exceptions exist: certain states, collective bargaining agreements (CBAs), or individual contracts may impose stricter requirements.

While there is no federal requirement for notice periods or severance pay, employers must comply with specific rules depending on state law, company policies, or contractual terms. For example, under the WARN Act (Worker Adjustment and Retraining Notification Act), employers with 100+ employees must provide 60 days’ notice in cases of mass layoffs or plant closures.

Employers are also responsible for ensuring timely final wage payments (state-specific deadlines apply) and providing terminated employees with access to unemployment benefits. Improper termination exposes employers to wrongful termination lawsuits, reputational damage, and regulatory fines.

With Gloroots as your Employer of Record (EOR), terminations in the U.S. are handled lawfully and fairly, ensuring compliance with both federal and state-specific requirements.

Key Termination Rules in the U.S.

• Notice Periods
  • No federal requirement.
  • Some states require immediate final wage payment upon termination.
  • WARN Act requires 60 days’ notice for mass layoffs (100+ employees).
• Severance Pay
  • Not mandated federally.
  • May be required by employment contracts or CBAs.
  • Often provided voluntarily to mitigate legal risk.
• Unemployment Insurance
  • Employees terminated without cause may qualify for state unemployment benefits.
  • Employers fund unemployment insurance via FUTA & SUTA taxes.
• Final Paycheck
  • Timing varies by state (e.g., California requires payment immediately; others allow next scheduled payday).
• Probationary Periods
  • At-will rules still apply, but contracts may set shorter notice terms.
• Unlawful Termination
  • Employers cannot terminate based on discrimination, retaliation, or protected activities (covered under Title VII, ADA, ADEA, FMLA, and state laws).

Termination: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

Termination in the U.S. is simpler in principle due to at-will employment, but highly risky if mismanaged. Employers must respect state laws, WARN Act requirements, and anti-discrimination protections to avoid costly disputes.

With Gloroots as your EOR in the U.S., you can:

• Manage terminations lawfully under federal and state frameworks.
• Ensure timely final settlements and unemployment compliance.
• Reduce the risk of wrongful termination claims.

Gloroots ensures employee exits in the U.S. are compliant, fair, and low-risk.

Q: What is the offboarding process in the U.S.?

Offboarding in the U.S. requires compliance with federal and state employment laws as well as proper handling of wages, benefits, and employee documentation. Employers must ensure timely payment of the final paycheck, administer continuation of health benefits under COBRA (Consolidated Omnibus Budget Reconciliation Act) where applicable, and update payroll and tax records.

In addition to financial settlements, employers must manage the return of company property, revoke IT and system access, and provide employees with required tax forms such as the W-2 (issued annually) or 1099 (for contractors). Improper offboarding can result in penalties, wrongful termination claims, or disputes over unpaid wages or benefits.

With Gloroots as your Employer of Record (EOR), offboarding in the U.S. is handled smoothly and in full compliance, ensuring employees exit on professional and lawful terms.

Key Phases of the Offboarding Process in the U.S.

1. Notice & Termination Confirmation
   • Apply at-will rules, WARN Act (for mass layoffs), or contract terms.
   • Provide written notice if required by policy or state law.
2. Final Paycheck
   • Must include all outstanding wages, unused vacation/PTO (if required by state), and any agreed severance.
   • State deadlines apply (e.g., California: immediate; New York: next scheduled payday).
3. Benefits Continuation (COBRA)
   • Employers with 20+ employees must offer continuation of group health insurance for 18–36 months.
   • Employee pays full premium unless employer subsidizes.
4. Unemployment Insurance
   • File necessary state documentation to allow eligible employees to access unemployment benefits.
5. Tax Reporting
   • Update IRS and state tax records.
   • Provide Form W-2 (employees) or 1099 (contractors).
6. Exit Clearance
   • Return of company assets (laptops, phones, ID badges).
   • Revoke IT/system access to protect data.
7. Exit Documentation
   • Provide reference letter or separation certificate if applicable.

Offboarding: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

U.S. offboarding is not just administrative — it carries significant legal and financial obligations around wages, benefits, and compliance filings. Missteps can result in state fines, lawsuits, or IRS penalties.

With Gloroots as your EOR in the U.S., you can:

• Ensure employees receive correct and timely final pay and benefits.
• Stay compliant with COBRA, unemployment, and tax reporting rules.
• Provide a professional, dispute-free exit process.

Gloroots makes offboarding in the U.S. smooth, compliant, and low-risk.

Q: What costs and financial planning do you need with an Employer of Record in the U.S.?

Hiring in the U.S. requires careful budgeting due to federal and state payroll taxes, employee benefits, and severance obligations. On top of salaries, employers must contribute to Social Security, Medicare, unemployment insurance, and workers’ compensation, which can add 10–15% to payroll costs.

Healthcare is a major expense, as the U.S. does not provide universal coverage. Employers offering health insurance, dental, vision, and retirement plans (401k) can expect benefits to add 20–30% of payroll costs, depending on plan design. Since benefits are a primary driver of talent retention, they are often unavoidable in competitive industries.

Direct entity setup adds incorporation and compliance costs — legal fees, payroll software, accounting, and state registrations. By contrast, Gloroots as an Employer of Record (EOR) eliminates these upfront expenses and provides a predictable monthly fee per employee, covering payroll, taxes, and benefits administration.

Key Cost Considerations in the U.S.

• Entity Setup & Maintenance
  • Incorporation fees, legal filings, ongoing accounting.
  • State registrations for tax, unemployment, and workers’ comp.
• Employer Payroll Contributions
  • Social Security: 6.2% (up to wage cap).
  • Medicare: 1.45%.
  • Unemployment (FUTA & SUTA): Federal 6% on $7,000 wages (credits available); state rates vary.
  • Workers’ Compensation: State-specific, industry-based.
• Employee Benefits
  • Health insurance is often the single largest cost.
  • 401k contributions (typically 3–6% match).
  • Paid leave, wellness, and supplemental perks.
• Redundancy & Severance
  • Not federally mandated, but often offered to reduce litigation risk.
  • Costs vary by state, contract, or policy.
• EOR Fees
  • Predictable monthly per-employee fee.
  • Covers payroll, benefits, and compliance administration.

Costs: Direct Entity vs Gloroots EOR (U.S.)

Why This Matters

The U.S. has high payroll and benefits costs, with significant variability by state and industry. Direct entity setup adds administrative overhead, while benefits packages are critical for competitiveness.

With Gloroots as your EOR in the U.S., you can:

• Avoid entity setup expenses.
• Predict costs with a clear monthly fee model.
• Stay compliant with payroll contributions, benefits, and severance.

Gloroots makes financial planning in the U.S. transparent, compliant, and cost-efficient.

Q: What challenges might you face, and how do you solve them using an EOR in the U.S.?

The U.S. offers the largest, most innovative workforce in the world, but it is also one of the most complex employment markets. Employers must navigate fragmented labor laws across federal, state, and local levels, with wide variations in minimum wage, overtime, paid leave, and termination rules. Payroll is further complicated by multi-state income tax compliance, Social Security, Medicare, FUTA, SUTA, and workers’ compensation requirements.

Healthcare and benefits add another layer of complexity. Unlike many countries with universal healthcare, U.S. employers are expected to provide health insurance and retirement plans, which often add 20–30% to payroll costs. Missteps in benefits administration directly affect employee satisfaction and retention.

Another challenge is worker misclassification (W-2 vs. 1099 contractors), heavily policed by the IRS, Department of Labor, and state agencies. Penalties for misclassification include back taxes, fines, and lawsuits.

With Gloroots as your Employer of Record (EOR), these challenges are simplified. Gloroots ensures compliance across all 50 states, manages payroll taxes, provides competitive benefits packages, and eliminates misclassification risks, allowing companies to focus on growth.

Common Challenges & EOR Solutions in the U.S.

Why This Matters

The U.S. employment market is high-opportunity but high-risk due to fragmented laws, costly benefits, and strict enforcement of payroll and classification rules. Non-compliance exposes employers to IRS fines, lawsuits, or reputational damage.

With Gloroots as your EOR in the U.S., you can:

• Hire employees in weeks across all 50 states.
• Ensure compliance with federal, state, and local labor laws.
• Simplify payroll, benefits, and termination processes.
• Protect your business from costly misclassification and compliance risks.

Gloroots makes U.S. hiring fast, compliant, and risk-free.

Conclusion

The United States is the world’s largest and most diverse labor market, offering deep expertise in technology, finance, life sciences, healthcare, aerospace, and professional services. With hubs like New York, San Francisco, Boston, Chicago, and Austin, the U.S. is a global center of innovation and talent.

However, hiring in the U.S. is compliance-heavy and decentralized, requiring employers to navigate federal, state, and local labor laws, complex payroll tax structures, and high benefits costs. Worker misclassification (W-2 vs. 1099), inconsistent leave laws, and expensive healthcare administration make direct hiring challenging for global companies.

With Gloroots as your Employer of Record (EOR) in the U.S., you can hire employees in the U.S. in weeks instead of months. Gloroots manages payroll compliance, employee benefits, and global compliance while you focus on building high-performing teams.

Gloroots makes U.S. expansion simple, compliant, and scalable.

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