Hire and Pay Workers in the United States

An overview of benefits and local laws when hiring and paying workers in the United States

United States Overview

The U.S. has always been known as “the land of opportunity.”  Workers come to find jobs in the U.S. to improve their skills, their education level, and to build a new life. Working abroad in the U.S. is also a wonderful way for students to spend a summer abroad or spend a gap year. There are ample opportunities for part-time or seasonal jobs in the United States, and working in the U.S. gives individuals time to explore the country, while supplementing travel expenses and gaining international work experience.

Many foreign nationals want to come to the United States to work. This page provides a summary of employment-based nonimmigrant and immigrant visa classifications and other categories of foreign nationals who are eligible for employment authorization. Links are provided for more detailed information on requirements. You can find out more about the different types of ways to work in the United States here.

Before hiring employees in the United States, there are some key things you’ll need to know. Firstly, there’s no legally-required notice period for termination in the US, and either party can end an employment contract at will for any lawful reason at any time.

Employment in the United States

Employers in the United States are subject to the taxes imposed by the Federal Insurance Contributions Act (FICA) (Social Security and Medicare taxes) and the Federal Unemployment Tax Act (FUTA). An employer is a person or organization for whom a worker performs services as an employee. As an employer, you’re required to withhold, report, and pay employment taxes to the United States on wages paid.

To file the various employment tax returns, you need an employer identification number (EIN). If you don’t have an EIN, you may apply for one online. You may apply for an EIN by fax or mail (use only one method for each entity so you don’t receive more than one EIN for an entity). For more information about EINs, see Topic No. 755.

Employment contracts in the United States are usually for executive level engagements.  Offer letters alone are usually considered suffice as notice of the particulars for the job.

 

How to Hire in the United States

When hiring in the U.S, you have two main options:

  1. Setup a legal entity/business.
  2. Use an Employer of Record. CXC helps you engage and hire talent compliantly in any country you need to do business.

Table of Benefits

If you are looking to work in the U.S or engage remote workers, you will need to know about the local employment laws, tax and benefits.

Working Terms

The general working terms in the U.S are the same in all states in America at 5 days per week, with daily working hours at 8 and 40 hours per week. Probation is not applicable in the U.S., and subsequently nor is probation period and noticed period.

Salary is pro-rated based on hourly rate.

 

Benefits

Public Holidays – estimated United States: 11 days (not required to pay if not working)
Overtime Overtime is usually after 8 hours per day or 40 hours per week and may vary depending the state.
Annual Medical Leave ( in days) Leave times vary by state. No federal mandate for the amount of leave given each year.  Accrual based if applicable.
Maternity Leave United States: Leave times vary by state. No federal mandate for the amount of leave given each year.  Accrual based if applicable.
Paternity Leave Leave times vary by state. No federal mandate for the amount of leave given each year.  Accrual based if applicable.

 

Statutory Contributions Ranges from 11 – 30% depending on state or territory
Based on individual circumstances
Severance Pay N/A
Termination United States: At will or 2 weeks professional courtesy
Medical Insurance United States : ACA – Affordable Care Act United States: Mandated health care – costs may vary

Costs are split ½ between employer and employee

Personal Income Tax Varies by sate or territory and individual circumstances.

 

Employers

Employers must verify that an individual whom they plan to employ or continue to employ in the United States is authorized to accept employment in the United States. For more information about the employment authorization verification process, visit the I-9 Central page.

As an employer, you may require the services of a noncitizen to work at your company or business. If the individual is already a permanent resident (Green Card holder), you may hire that individual, but you must comply with the employment verification requirements.

If the noncitizen is not already a permanent resident, you will need to file a petition so that the individual may obtain the appropriate immigrant or nonimmigrant classification.  You may choose to file an immigrant petition (permanent) or a nonimmigrant petition (temporary) on behalf of that employee.

Employees

No noncitizen may accept employment in the United States unless they have been authorized to do so. Some noncitizen, such as those who have been admitted as permanent residents, granted asylum or refugee status, or admitted in work-related nonimmigrant classifications, may have employment authorization as a direct result of their immigration status. Other noncitizens may need to apply individually for employment authorization.

There are many ways in which a person may be able to work in the United States. You may seek an immigration classification that permits you to live and work in the United States permanently or temporarily. In most instances, your employer or potential employer must petition for you. In this Working in the United States section, you will find information about coming to the United States to work temporarily or permanently and the many different eligibility categories for working in the United States.

Labor Certification

Some immigrant visa preferences require you to already have a job offer from a U.S. employer. This employer will be considered your sponsor. For some visa categories, before the U.S. employer can submit an immigration petition to USCIS, the employer must obtain an approved labor certification from the U.S. Department of Labor (DOL). The DOL labor certification verifies the following:

  • There are insufficient available, qualified, and willing U.S. workers to fill the position being offered at the prevailing wage
  • Hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers

For more information see the Labor Certification page.

With CXC’s services, you can findengage and pay top talent in the United States and around the world. CXC makes hiring easy and fast, alleviating the need for you to setup a legal entity. We know the local laws and tax requirements and ensure all engagements are in compliance. Hire anyone, work anywhere, the right way, with CXC.

If you are interested to talk more about how to expand you business into the United States or hire remote workers without having to setup a legal entity, get in touch with our team of specialists.

ABOUT CXC GLOBAL

With over 30 years’ experience and expertise in global payroll and workforce management , CXC has the resources, technology and compliance capabilities to facilitate worker engagement worldwide.

As an experienced and trusted domestic (USA & Canada) and global partner for your remote and in-office workers, CXC acts as the Employer of Record (EOR) in each country where your workers need to work.

CXC’s cloud-based worker platform MyCXC, enables onboarding, benefits management, employer and employee taxation and compliant payroll in local currency.