Remote’s guide to employing in

the United States
united-states flag

Make employment in the United States easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in the United States, all in one easy-to-use platform.

  • Capital City

    Washington, D.C.

  • Currency

    United States Dollar ($, USD)

  • Languages

    English

  • Population size

    328,239,523

Services available in this country:
Employer of Record ProductContractor ManagementGlobal Payroll
Monument valley, utah, u.s.

Facts & Stats

Map of the United States
  • Capital City

    Washington, D.C.

  • Currency

    United States Dollar ($, USD)

  • Languages

    English

  • Population size

    328,239,523

  • Ease of doing business

    Very easy

  • Cost of living index

    $$$$ (28 of 139 nations)

  • Payroll frequency

    Biweekly or Monthly

  • VAT - standard rate

    Different for every state

  • GDP - real growth rate

    2.2% (2019)

The United States of America needs little introduction. The nation’s economy is bolstered by world-leading exports and innovation in technology, sports, arts, culture, media, and music.

Home to Hollywood, Silicon Valley, and iconic brands like Apple, Google, Ford and Nike, 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.

The trend toward flexible, hybrid, and remote work continues in the US, with The Great Resignation taking hold. Smart employers on the lookout for experienced international talent should be considering taking advantage of this labour movement. For employers outside the US, offering a competitive benefits package can give you a genuine edge over local competitors.

Statutory provisions for annual leave, sick leave,social security, and healthcare are comparatively low in the US. That means employers who can provide these benefits as part of an employee-focused total rewards program will find great success when attracting and retaining top quality US candidates.

Grow your team in United States with Remote

Looking to employ workers in United States? Companies hiring in United States must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in United States on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your United States team.

Risks of misclassification

United States, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in United States may lead to fines and penalties for the offending company.

Employing in United States

American labour regulations are spelled out across several federal and state statutes, designed to safeguard workers’ rights and stave off 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 Labour Standards Act

  • The Family and Medical Leave Act, and

  • The National Labour Relations Act, etc.

To a great degree, American employees enjoy protection from discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your American employees.

Minimum wage

Minimum wage rates in the United States are set by U.S labor law and a number of states and local laws. The federal minimum wage is fixed at $7.25 per hour, while minimum wages vary per state.

Payroll cycle

There’s no mandatory payroll cycle in the United States, although private employers usually pay salaries twice a month. For customers of Remote, all employee payments will be made in equal bi-monthly instalments, payable in arrears.

Onboarding Time

We can help you get a new employee started in the United States quickly. The minimum onboarding time we need is only 2 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

7 Public holidays

Jan
Monday, 01 January 20241New Year's Day
Monday, 15 January 20242Martin Luther King Jr. Day
May
Monday, 27 May 20243Memorial Day
Jul
Thursday, 04 July 20244Independence Day
Sept
Monday, 02 September 20245Labour Day
Nov
Thursday, 28 November 20246Thanksgiving Day
Dec
Wednesday, 25 December 20247Christmas Day

Competitive benefits package in the United States

Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.

Our benefits packages in the US are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Local market insights

  • In the US, the majority of employers offer supplemental health insurance to their workforce.

  • The country does not have a public health system, and as such, private health insurance is a hugely important benefit that allows employees to access routine care and pay for care in the event of an emergency without going into debt. The United States is a unique environment for benefits compared to the rest of the world and can be one of the most expensive countries to employ in due to the high costs of benefits (particularly healthcare).

  • This link leads to the machine-readable files that are made available in response to the federal Transparency in Coverage Rule and includes negotiated service rates and out-of-network allowed amounts between health plans and healthcare providers. The machine readable files are formatted to allow researchers, regulators, and application developers to more easily access and analyze data.

Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.

If you'd like specific information about our benefits packages in the US, start onboarding your first employee with Remote today.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Taxes in United States

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in United States.

  • 6.2%

    Social security (This percentage is capped at a ceiling of $160,200. Any pay on top of this amount does not trigger a 6.2% social security payment from the employer)

  • 1.45%

    Medicare

  • 6%

    Unemployment tax (charged on the first $7,000 an employee earns per year)

Types of leave

American employees generally earn at least 10 days of paid leave for every 12 months of employment.

Employment termination

Termination process

All states (except Montana) fall under "employment at-will" which means employees or employers can terminate their relationship at any time.

Employers can generally fire employees without any reason, explanation, or warning. Several states recognise exceptions to the at-will employment doctrine in cases such as:

  • Employment contracts — employees who’re covered by collective bargaining agreements or contracts may have protections against summary dismissal that at-will employees lack

  • Implied contracts — employers cannot fire employees arbitrarily if an implied contract has been agreed upon in principle, whether or not it’s documented

  • Good faith and fair dealing — employers cannot terminate employees to avoid paying for agreed benefits like healthcare, pensions, or commission-based work like sales

  • Public policy — state laws can prohibit employers from letting employees go without just cause

Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly without leading to legal complications

Notice period

Notice periods can be included in the employment contract with agreement between both parties.

Employers typically provide at least two weeks advance notice although it’s not generally required if employees are hired on an at-will basis.

Severance pay

Severance pay in the United States is generally one or two month’s pay for every year worked, although there’s no requirement for it under the Fair Labour Standards Act.

Probation periods

Probation periods are not required under Federal Law in the United States. In all states (except Montana) "employment at-will" legislation applies which means the addition of a probation period is not necessary for employers.

Fair Pricing in the United States

Employer of Record

Hire and pay your global team

Starting at US$599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app