Countrypedia

Hire and manage employees in the USA

As your Employer of Record (EOR) in the USA, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
November 13, 2024
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Quick facts

The United States of America is a federal republic composed of 50 states located in North America. The 48 neighboring states situated in the continent’s central portions accompany Hawaii, an island state in the center of the Pacific Ocean, and Alaska, a state at the far western end of North America. Canada borders the USA conterminous states to the north, the Atlantic Ocean to the east, the Gulf of Mexico and Mexico to the south, and the Pacific Ocean to the west. The United States is the world’s fourth-largest nation by area (after Russia, Canada, and China). Washington, which includes the District of Columbia, the federal capital region established in 1790, serves as the nation’s capital.

Employment Contracts

United States as a whole hasn't comprehensive laws governing employment contracts.

In fact, wherever there is an employer-employee connection, U.S. law does not mandate that an employee have a formal contract.

Many workers in the US are considered “at-will” workers, meaning that their employment is not governed by a work contract USA or another kind of employment agreement. At-will employment, on the other hand, denotes a situation in which either the employer or the employee may end the relationship at any moment without explanation. It’s crucial to understand that an offer letter is not the same as an employment contract, even if the employee is located in the United States and receives one.

Probation Period

Some employers offer a trial period for new hires, while others do not. The employee will generally get a review after a certain amount of time for most employers who demand a trial term, also known as a probationary period or an introduction period of work.

Working Hours

There is typically a 40-hour work week in the USA.

Vacation Days

There are often only ten vacation days, several holidays, and possibly 7 paid sick days available to U.S. employees each year (more extended periods apply under the Family Medical Leave Act).

Sick Leave

Seven compensated sick days (extended periods apply under the Family Medical Leave Act).

Wages and Salary Payment

The Fair Labor Standards Act contains provisions on the federal minimum wage (FLSA). As of July 24, 2009, the federal minimum wage is $7.25 per hour. There are minimum wage regulations across many states, some state laws provide greater employee benefits, and companies must follow both.

In the US, semi-monthly, or twice a month, is the most typical length of a pay period. The 15th and the 30th of the month are usually the dates. Although it is not compulsory, many businesses pay their staff semi-monthly.

Public Holidays

Unites States have 11 paid off holidays for federal workers:

  • New Year’s Day: January 1
  • Martin Luther King, Jr. Day: third Monday of January
  • President’s Day (George Washington’s Birthday): third Monday of February
  • Memorial Day: last Monday in May
  • Juneteenth: June 19
  • Independence Day: July 4
  • Labor Day: first Monday in September
  • Indigenous Peoples’ Day (also observed as Columbus Day): second Monday in October
  • Veterans Day: November 11
  • Thanksgiving Day: fourth Thursday in November
  • Christmas Day: December 25

What follows if a holiday falls on a weekend?

The government observes any federal holidays that fall on a Saturday or Sunday instead of the closest weekday because most government offices are closed on weekends. Pay and leave are regulated by this observance.

Employer Taxes

  • Federal Social Security: 6.20%
  • Federal Medicare: 1.45%
  • Federal Unemployment Tax Act (FUTA): 6%
  • State Unemployment Insurance: 1.70%
  • Worker’s compensation: 1%

Employee Taxes

  • Federal Social Security: 6.20%
  • Federal Medicare: 1.45%

Notice Period

The time an employer must provide when terminating an employee’s employment may or may not be specified in employment contracts as a notification obligation.

Termination and Severance Pay

Employees who leave their positions frequently receive severance money. Usually, it is determined by the amount of time a person has worked and is still eligible for. Severance pay is not mandated by the Fair Labor Standards Act (FLSA). An employer and an employee (or the employee’s representative) must agree on the terms of severance pay.

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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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