Explore our EOR&PEO services in the USA

As your USA EOR, we would support your growth by contracting personnel and handling their payment without establishing a local branch office or subsidiary.

In compliance with regional labor laws, your individual is employed by anÂ USA PEOÂ and can be onboarded in days as opposed to the usual months. Your new employee will start working for you soon, similarly to the rest of your team.

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Country Overview

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.

General Information

Population: ~331.000.000

Capital City:Â Washington (population: ~700.000)

GDP:Â ~$20 trillions

GDP per capita:Â ~$63.500

Currency: US Dollar (USD)

Unemployment:Â ~3.7%

Employer Taxes: 11 – 35%

Employee Taxes:Â up to 37%

USA EOR SPECIFICS

Employment contracts in the USA

First and foremost, it should be noted that neither Florida nor the United States as a whole has 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 in the USA

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 in the USA

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

Vacation days in the USA

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 in the USA

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

Wages and Salary Payment in the USA

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 in the USA

Unites States have 11 paid off holidays for federal workers:

New Yearâ€™s Day: January 1

Martin Luther King, Jr. Day: third Monday of January

Presidentâ€™s Day (George Washingtonâ€™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 Peoplesâ€™ 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?Â

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 in the USA

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 in the USA

Federal Social Security: 6.20%

Federal Medicare: 1.45%

Notice Period in the USA

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 / Severance in the USA

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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