So, you have made up your mind to expand your business in the US? Great! But, not able to navigate the complexities of varying federal and state laws in the US? Well, that’s where an Employer of Record- USA comes into the picture. USA, being a country where innovations in science and technology merge with the brilliance of economy and arts, is a dream place for many to establish their business. Further, USA is the home to a huge talent pool, thereby making it all the more lucrative for global employers to recruit skilled workforce in their organization.
Since different sets of law reign supreme in the USA, staying compliant with the labor laws might be a difficult and painful task. Keeping track of diverse laws in the US states is not only time-consuming but also overwhelming. Further, you will lose focus from your business if you keep investing your time in studying the rules that keep varying from one state to another in the US. What, then, is the easiest way to hire employees in the USA? The answer lies in partnering with an EOR service provider, that possesses extensive knowledge about the various rules, laws, and compliances of the US.
Let’s dive into the details to find out how you can make the right EOR choice that will, in turn, aid you to stay compliant and ensure on-time payment of your new employees!
Table of Contents:
- The USA- Quick Pointers to Know Before Expanding Your Business
- Steps to Hiring Employees With an Employer of Record USA Solution
- What is the Pricing of the Employer of Record- US solution?
- Types of Visas in the USA
- Work Permits in the USA
- Contractors Vs Full-time Employees- The Core Differences
- Employment Contracts in the USA
- Taxes & Social Security in the US
- Income Tax Bracket
- Benefits of Using an EOR Solution to Hire Employees in the USA
- State-by-state Cost of Hiring Employees in the USA
- Frequently Asked Questions- Employer of Record USA
The USA- Quick Pointers to Know Before Expanding Your Business
It is never a bad idea to acquaint yourself with the country where you are planning to branch out your business. Let’s have a quick look at the core facts concerning USA:
Capital: Washington, D.C.
Area of Land: 3,531,905 sq. miles
Population: 331.9 million
National Language: English
Currency: United States Dollar or USD ($)
GDP: 1.5% growth in 2024 (USD $22.49 trillion)
Steps to Hiring Employees with an Employer of Record USA Solution
If you are wondering why you should specifically go for an EOR solution to hire employees from this country, we are here to shed light on the “why.” Expanding your business in a new country comes with its own share of hurdles and complexities. There is this long-drawn hassle of registering your business in the US, establishing your legal entity, adhering to the US labor law code, and ensuring compliances. All these cumbersome tasks will not only eat away your time but also exhaust your resources to a great extent.
The solution lies in going for an Employer of Record- USA services. In that way, you can easily start operating in the US market without a legal entity. However, with a plenty of EOR service providers rearing their heads in the market, choosing the right one often becomes a challenge. However, with a little bit of research, you can figure out what services you actually need.
Bid adieu to confusion by following these steps that will eventually lead you to the right Employer of Record- USA solution.
Step 1: Figure Out Your Requirements
Firstly, prepare a document outlining your requirements and ‘n’ number of features that you want from a particular EOR service provider. Accordingly, conduct your research on the best EOR service providers that align with your needs. Make sure to weigh both the pros and cons of a particular EOR company before giving your final nod.
Step 2: Check if a Particular Employer of Record- USA solution Has Its Own Entity in the US
There can be truckloads of EOR service providers in the market. Taking a prudent decision is way too important. You have to be vigilant of a particular factor while making the choice. Ensure that the EOR service provider, the one that you are choosing, has its own legal entity in the US. Often, EOR service providers don’t have their own legal entities in a particular country and advertise their services under the cloak of dependence on third-party providers. To have a smooth experience handling employees and ensuring compliances, going for an owned-entity EOR model is advisable.
Step 3: Go Through User Reviews of All the EOR Solutions That You Have Narrowed Down
It is essential to understand the quality of services and support that an EOR service provider offers to its users. Invest time in reading user ratings, reviews, and testimonials to know what the standard client experience is. Software-reviewing platforms such as G2 and Capterra offer detailed review reports of all the EOR tools that possibly exist in the market. Having knowledge of what others are saying about a specific Employer of Record solution will help you make an informed choice.
Step 4: Clarify All Your Doubts During the Discussion Stage With an Employer of Record- USA Solution
No matter what queries you have, it is important to clarify these then and there with your shortlisted EOR partners. For instance, you can ask them how fast your employees can receive their salaries, response time of customer support, details about pricing structure, and so on.
Step 5: Check the Security Provisions Offered by an EOR Partner
Before narrowing down on an EOR service provider, conduct a quick check of its security measures. After all, you need to ensure that utmost security is being offered to your company data and intellectual property. Sensitive employee data ought to be safeguarded at any cost. Therefore, going for an EOR partner that delivers top-notch security is going to be the best decision that you can take today.
Also Read: Employer of Record [India]- A Detailed Guide
What is the Pricing of the Employer of Record- USA Solution?
The cost of using an Employer of Record (EOR) in the United States can vary depending on several factors, including the EOR provider, the services needed, the number of employees, and the specific requirements of the employer. You may expect to get EOR services in the US at a rate as low as $599 or surpass $2000 per employee.
Generally, when using an EOR, the employer pays a fee to the EOR provider for each employee or contractor they engage through the EOR’s services. This fee typically covers various services, such as payroll processing, benefits administration, compliance management, tax withholding and reporting, and other administrative tasks related to employment.
The cost structure for using an EOR can vary. Some EOR providers may charge a percentage of the employee’s salary or hourly rate, while others may charge a flat fee per employee or contractor. Additionally, there may be setup fees, monthly fees, or other ancillary charges associated with using an EOR.
Do note that certain traditional EOR companies offer enterprise-level rates. Of course, that might not only be way too pricey but also inappropriate with respect to your needs. On the other end of the spectrum, you may come across some EOR partners offering suspiciously low rates. Neither will you want to get mired in an expensive deal nor regret your choice for getting low, subpar services after falling for a low rate.
Asanify offers excellent EOR services for businesses looking to enter the US market. It offers an extremely affordable flat-rate pricing model- that will ensure that you spend the right amount on the right platform to receive top-notch solution. After all, partnering with an EOR company that helps you stay secure and compliant is much-needed.
Types of Visas in the USA
In the United States, there are several types of employment-based visas that allow foreign nationals to work temporarily or permanently in the country. These visas are categorized into different preference categories based on factors such as the applicant’s skills, qualifications, and the needs of the U.S. economy. Some of the most common types of employment visas in the USA include:
|
Visa Type |
Meaning |
|
Green Cards (on the basis of employment) |
On the basis of specific employment preferences, several job-seekers in the USA apply to obtain green cards. It is a lawful way to gain permanent resident status in the USA. The categories of this visa type range from EB-1 to EB-5. |
|
L-1 Visa |
It is a non-immigrant visa that permits multinational companies to transfer employees to the US for a temporary time period. |
|
TN Visa |
Also known as NAFTA-based Visa, this is available to citizens of Canada and Mexico under the North American Free Trade Agreement (NAFTA) and allows for temporary employment in certain professional occupations. |
|
O Visa |
The O visa is for individuals with extraordinary ability or achievement. Individuals having special expertise in fields such as science, arts, education, business, or athletics can obtain this visa to work in their respective fields in the US. |
|
E Visa |
E visas are for treaty traders (E-1) and treaty investors (E-2) from countries with which the United States maintains a treaty of commerce and navigation. |
|
H-1B Visa |
This visa is for foreign workers in specialty occupations that require specialized knowledge, typically in fields such as science, technology, engineering, and mathematics (STEM). |
Work Permits in the USA
To work in the USA, having a work permit is a must. Since you are planning to partner with an Employer of Record- USA solution, let’s understand what it is.
In the United States, a work permit refers to legal authorization allowing an individual who is not a citizen or permanent resident to work legally in the country. Work permits are also known as employment authorization documents (EADs) or Form I-766. These documents are issued by the United States Citizenship and Immigration Services (USCIS), a component of the Department of Homeland Security (DHS). To state in simple terms, work permits give individuals the right to work in the US.
There is no set time limit within which the work permit processing gets completed. It might take several days to process work permits for foreigners in the USA, depending upon the place and work permit type. For people who have EB-5, O-1, and EB-1 visas, US work permit can be obtained without securing a job offer. So, it comes as an automatic perk for these visa-holders.
Contractors vs Full-time Employees
Contractors and full-time employees represent two distinct categories of workers, each with its own set of advantages, disadvantages, and legal implications. Here are the core differences between contractors and full-time employees:
1. Employment Relationship
- Full-time employees have a direct employment relationship with the company, typically working under an employment contract. They are considered part of the company’s staff and are entitled to certain benefits and protections under labor laws.
- Contractors, on the other hand, are hired on a contractual basis to perform specific tasks or projects. They work independently and are not considered employees of the company. Contractors are usually engaged through a service agreement or contract for services.
2. Work Arrangement
- Full-time employees typically work regular hours as defined by the employer, often on-site at the company’s premises. They may work under the supervision of a manager and are expected to adhere to company policies and procedures.
- Contractors have more flexibility in their work arrangement. They may work remotely or from their own premises and have more control over their work schedule and methods. Contractors are generally responsible for managing their own workload and meeting project deadlines.
3. Benefits and Protections
- Full-time employees are entitled to a range of benefits provided by the employer, such as health insurance, retirement plans, paid time off, and employee perks. They are also protected by labor laws governing minimum wage, overtime pay, and workplace safety.
- Contractors do not receive benefits from the company and are responsible for their own insurance, retirement savings, and taxes. They are not covered by labor laws governing employee rights and protections, such as minimum wage laws and anti-discrimination laws.
4. Tax and Legal Implications
- Full-time employees have income taxes, Social Security, and Medicare contributions withheld from their paychecks by the employer. Employers are also responsible for paying payroll taxes on behalf of their employees.
- Contractors are considered self-employed and are responsible for paying their own taxes, including income taxes and self-employment taxes. They are required to report their income to the IRS and may need to make estimated tax payments throughout the year.
5. Duration of Engagement
- Full-time employment is typically considered a long-term commitment, with employees working for the company indefinitely or until they resign or are terminated.
- Contractor engagements are often project-based or for a specified period of time. Once the project is completed or the contract term expires, the engagement may end, or the contract may be renewed or extended based on mutual agreement.
Employment Contracts in the USA
Employment contracts are not common for employees in the USA. These are usually made available to professionals joining senior-level or executive positions. Generally, for employees, it is the offer letter that stands supreme as it lays down every detail about job responsibilities, benefits, and compensation. Independent contractors and freelancers are free to come up with their own contract or agreement that their employers may sign, once the conditions laid down in the document are agreed upon by both the parties.
Wondering what makes an employment contract in the USA fully compliant with the prevailing labor code of the land? An ideal contract ought to include the following crucial details:
- Establishment of the identification of both the parties- employer & employee
- Specification of employment tenure with the inclusion of the start date and end date (if it is a fixed-term employment)
- Work expectations and day-to-day responsibilities that the employee needs to fulfill
- Work location
- Working hours
- Compensation details with information on benefits
- Details about probation, notice, and termination period
Taxes & Social Security in the US
Dealing with the intricacies of taxation tasks in the US may appear to be daunting. However, with the aid of an ideal EOR partner like Asanify, you won’t have to worry about the complex details of tax-handling in the US. Keep all your worries about handling social security, medical care, federal employment and income tax- at bay. Asanify EOR is here to handle every tax-related compliance on employer’s behalf. This will help you focus on strategizing growth for your business while the EOR takes charge of keeping your business fully safeguarded from violation of tax rules.
Who are Tax Residents in the USA?
The general rule in the USA is that its residents are taxed on the basis of their global income, and not specifically the income that has its root in the USA. However, for the non-residents in the US, the taxation is done on their USA-sourced income solely.
But, what makes a person eligible to pay taxes in the USA? Well, in the USA, tax residency eligibility is assessed on the basis of one’s period of stay in the USA. An individual automatically becomes a tax resident in the US if:
- They are staying in the country for at least 31 days during the current year;
- In addition to 183 days-stay throughout the 3-year period inclusive of the present year and the two preceding years
Employer Taxation in the US
| Tax Type | Description |
| Corporate Income Tax or CIT | 21% |
| Payroll tax | Taxes to be deducted from an employee’s salary include social security taxes, state unemployment tax, and federal income tax |
| Employer Social Security Tax | If the base wage is USD 137,700, the employer share that they need to pay is 6.2% |
| Withholding Tax | Tax rate of 30% is applicable on the gross sum accounting interest, dividends, and royalties |
Employee Taxation in the US
| Tax Type | Description |
| Sales Tax | Not all US states collect sales tax. 45 states in the US have made it mandatory for sales tax to be paid at rates that keep varying |
| Employee Social Security Type | 6.2% is the employee share for social security taxes |
Income Tax Brackets in the US
Let’s take a quick look at the tax rate that is applicable for the various tax brackets in the USA.
For Single Taxpayers
|
Tax Rate |
Income Bracket |
|
10% |
$0 to $11,000 |
|
12% |
$11,001 to $44,725 |
|
22% |
$44,726 to $95,375 |
|
24% |
$95,376 to $182,100 |
|
32% |
$182,101 to $231,250 |
|
35% |
$231,251 to $578,125 |
|
37% |
$578,126 and more |
For Married Taxpayers Filing Jointly
|
Tax Rate |
Income Bracket |
|
10% |
$0 to $22,000 |
| 12% |
$22,001 to $89,450 |
| 22% |
$89,451 to $190,750 |
|
24% |
$190,751 to $364,200 |
|
32% |
$364, 201 to $462,500 |
|
35% |
$364,201 to $462,500 |
| 37% |
$693,751 or exceeding this |
For Married Taxpayers Filing Separately
|
Tax Rate |
Income Bracket |
|
10% |
$0 to $11,000 |
|
12% |
$11,001 to $44,725 |
|
22% |
$44,726 to $95,375 |
|
24% |
$95,376 to $182,100 |
|
32% |
$182,101 to $231,250 |
|
35% |
$231,251 to $346,875 |
|
37% |
$346,876 or more |
For the Head of the Household
|
Tax Rate |
Income Bracket |
|
10% |
$0 to $15,700 |
|
12% |
$15,701 to $59,850 |
|
22% |
$59,851 to $95,350 |
|
24% |
$95,351 to $182,100 |
|
32% |
$182,101 to $231,250 |
|
35% |
$231,251 to $578,100 |
|
37% |
$578,101 or more than this |
US Severance Pay
In the United States, severance pay refers to a compensation package provided to employees who are terminated from their jobs involuntarily. Severance pay is not mandated by federal law, but some companies offer it as a gesture of goodwill or as part of an employment contract or policy.
The amount of severance pay can vary widely depending on factors such as the employee’s length of service, position, and the company’s policies. It may include a lump sum payment, continuation of benefits for a certain period, assistance with job placement, or other forms of support to help the employee transition to a new job.
It’s important to note that severance pay is not the same as unemployment benefits, which are typically provided by state governments to eligible individuals who lose their jobs through no fault of their own. Unemployment benefits are funded by employer payroll taxes and are intended to provide temporary financial assistance to unemployed workers while they search for new employment.
Benefits of Using an EOR Solution to Hire Employees in the USA
Using an Employer of Record (EOR) solution to hire employees in the USA offers numerous benefits for both employers and employees. Some of the key advantages include:
1. Compliance Management: EOR providers ensure compliance with local labor laws, tax regulations, and employment standards, reducing the risk of legal issues and penalties for non-compliance. This is especially valuable for businesses unfamiliar with the complexities of U.S. employment regulations.
2. Cost Savings: Employers can avoid the overhead costs associated with establishing a legal entity, payroll processing, benefits administration, and HR management by outsourcing these functions to an EOR provider. This can result in significant cost savings, especially for small and medium-sized businesses.
3. Global Expansion: EOR solutions enable businesses to expand their operations into new markets quickly and efficiently without the need for establishing a physical presence or navigating complex legal and administrative processes in foreign countries. This allows companies to access global talent pools and capitalize on new business opportunities with minimal risk.
4. Streamlined Administration: EOR providers handle all administrative tasks related to employment, including payroll processing, tax withholding, benefits administration, and compliance reporting. This frees up valuable time and resources for employers to focus on core business activities and strategic initiatives.
5. Access to Talent: Employers can access a wider pool of talent by hiring employees through an EOR solution, including remote workers and international talent. This allows businesses to find the right skills and expertise needed to support their growth and innovation initiatives.
6. Risk Mitigation: EOR providers assume the legal and financial liabilities associated with employment, including workers’ compensation, unemployment insurance, and employee-related lawsuits. This helps mitigate risk for employers and provides peace of mind knowing that they are protected from potential legal and financial challenges.
State-by-State Cost of Hiring Employees in the USA
Do you know that each state in the USA has its distinct set of employment laws? This implies that employment laws, say, in Arizona, won’t be same as the ones prevailing in Washington. Be it overtime rules, minimum wage or tax rules- everything is different in the USA states. Most importantly, the cost of hiring employees in the US also fluctuates, depending on the state where your employee resides and you choose to expand.
Let’s find out what’s the cost of hiring in the various states of the USA:
Cost of Hiring in Arizona
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $119,245 | $19,245 | $30,280 | $69,720 |
Cost of Hiring in Arkansas
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $119,045 | $19,045 | $32,067 | $67,933 |
Cost of Hiring in Colorado
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $119,214 | $19,214 | $31,330 | $68,670 |
Cost of Hiring in Connecticut
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $119,585 | $19,585 | $31,830 | $68,170 |
Cost of Hiring in Florida
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $119,159 | $19,159 | $26,780 | $73,220 |
Cost of Hiring in Georgia
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $124,000 | $24,000 | $22,000 | $78,000 |
Cost of Hiring in Illinois
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $119,256 | $19,256 | $32,530 | $67,470 |
Cost of Hiring in Indiana
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$106, 383 |
$6,383 |
$34,147 |
$65,853 |
Cost of Hiring in Kansas
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,483 | $19,483 | $43,490 |
$56,510 |
Cost of Hiring in Louisiana
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,257 | $19,257 | $30,449 |
$69,551 |
Cost of Hiring in Maryland
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,136 | $19,136 | $32,530 |
$67,470 |
Cost of Hiring in Michigan
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,348 | $19,348 | $31,049 |
$68,951 |
Cost of Hiring in Mississippi
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,273 | $19,273 | $31,480 | $68,520 |
Cost of Hiring in Missouri
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,416 | $19,416 | $29,933 |
$70,067 |
Cost of Hiring in Montana
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,589 | $19,589 | $32,959 | $67,041 |
Cost of Hiring in Nevada
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$120,064 | $20,064 | $26,780 |
$73,220 |
Cost of Hiring in New Jersey
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$120,093 | $20,093 | $31,024 |
$68,976 |
Cost of Hiring in New Mexico
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$120,823 | $20,823 | $30,673 |
$69,327 |
Cost of Hiring in New York
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,476 | $19,476 | $32,918 |
$67,082 |
Cost of Hiring in North Carolina
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,155 | $19,155 | $31,770 |
$68,230 |
Cost of Hiring in Ohio
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $119,118 | $19,118 | $29,164 | $70,836 |
Cost of Hiring in Oklahoma
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,386 | $19,386 | $31,342 |
$68,658 |
Cost of Hiring in Oregon
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,989 | $19,989 | $35,273 | $64,727 |
Cost of Hiring in Pennsylvania
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,474 | $19,474 | $29,850 |
$70,150 |
Cost of Hiring in South Carolina
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,182 | $19,182 | $33,235 |
$66,765 |
Cost of Hiring in South Dakota
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,285 | $19,285 | $25,469 |
$74,531 |
Cost of Hiring in Tennessee
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,294 | $19,294 | $25,469 |
$74,531 |
Cost of Hiring in Texas
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$118,998 | $18,998 | $26,780 |
$73,220 |
Cost of Hiring in Utah
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,471 | $19,471 | $31,730 |
$68,270 |
Cost of Hiring in Virginia
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
| $100,000 | $119,093 | $19,093 | $32,273 | $67,727 |
Cost of Hiring in Washington
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,630 | $19,630 | $33,336 |
$66,664 |
Cost of Hiring in Wisconsin
| Annual Gross Salary (that you want to pay) | Total Employment Cost | Employer Taxes | Employee Taxes | Net Salary |
|
$100,000 |
$119,532 | $19,532 | $32,530 |
$67,470 |
Frequently Asked Questions- Employer of Record USA
1. What is an Employer of Record (EOR) in the United States?
An Employer of Record is a service provider that assumes the responsibility for employing workers on behalf of a company. This includes managing payroll, benefits, taxes, and other HR-related tasks. Using this, you can easily set up your business in the US without having to undergo the complexity of establishing your legal entity here. Starting from hiring employees to paying them on time, an Employer of Record- USA will help you stay compliant and save your time.
2. Why would a company use an Employer of Record in the U.S.?
Companies often use EOR services to streamline HR processes, manage compliance with local employment laws, mitigate risks associated with hiring international workers, and expand their workforce without establishing a legal entity in a new location.
3. What are the benefits of using an Employer of Record?
Benefits of using an EOR include access to skilled talent globally, reduced administrative burden, compliance with local employment regulations, minimized legal risks, and the ability to enter new markets quickly.
4. How does the process of using an Employer of Record work?
The company identifies the need for additional workers in a specific location, engages an EOR, and provides details about the required workforce. The EOR then hires the workers on behalf of the company, handles all HR-related tasks, and ensures compliance with local laws.
5. Is using an Employer of Record cost-effective?
While using an EOR incurs fees, it can be cost-effective compared to establishing a legal entity in a new location, especially for short-term projects or international expansions. Also, the cost-effectiveness varies depending on the specific needs and circumstances of the company.
6. What types of workers can be employed through an Employer of Record USA?
Workers employed through an EOR can include full-time employees, part-time employees, temporary workers, independent contractors, and international workers requiring work authorization.
7. Does the company retain control over its employees when using an Employer of Record USA?
Yes, the company retains control over the day-to-day activities and management of its employees, while the EOR manages administrative tasks and ensures compliance with employment regulations.
8. Are there any legal or compliance risks associated with using an Employer of Record USA?
Employers should choose reputable EOR providers with expertise in compliance and employment law to mitigate legal and compliance risks. However, ultimately, the employer remains responsible for ensuring compliance with relevant regulations.
9. Can an Employer of Record assist with international expansions?
Yes, many EOR providers specialize in assisting companies with international expansions by managing the employment of workers in foreign countries, navigating local regulations, and providing support for global HR operations.
10. How do I choose the right Employer of Record USA for my company?
When choosing an EOR, consider factors such as the provider’s reputation, experience, services offered, compliance expertise, geographic coverage, and cost. Further, it is also essential to thoroughly review contracts and service agreements before engaging an EOR.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
