Hire in United States

United States PEO &

Employer of Record

Hire & manage teams remotely in United States without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

English

Salary Currency

US Dollar (USD)

Capital city

Washington D.C.

Time zone

Varies

EOR in United States

Hire Employees in United States

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in United States to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in United States

Employer of Record (EOR) services are for companies who do not have a legal entity in United States, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in United States.

2. Employee Onboarding

We sign a local labor contract with your employees based in United States.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in United States.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in United States

Professional Employment Organization (PEO) services are for companies who have a legal entity in United States, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
USA Taxes

Employee Income Taxes:

Individual income tax rates in United States are based on progressive tax brackets.

It varies on whether the individual is single, chooses to file jointly with a married partner, or is the head of a household. In addition to federal taxes, employees may also be required to pay state and local taxes, depending on where they live. State taxes are typically a percentage of the employee’s income.

Each state sets its own state tax rate. 30 states have a graduated-rate system, 14 have a flat rate, and 7 states do not have any additional tax.

States without state taxes:

  • Wyoming.
  • Texas.
  • Tennessee.
  • South Dakota.
  • Nevada.
  • Florida.
  • Alaska.

Tax Brackets:

Sample Calculation

Tax Brackets For Single Individual Tax Payers


10%: 0 – 11,000 USD
12%: 11,001 – 44,725 USD
22%: 44,726 – 95,375 USD
24%: 95,376 – 182,100 USD
32%: 182,101 – 231,250 USD
35%: 231,251 – 578,125 USD
37%: >578,126 USD

Tax Brackets For Married Tax Payers Filing Jointly


10%: 0 – 22,000 USD
12%: 22,001 – 89,450 USD
22%: 89,451 – 190,750 USD
24%: 190,751 – 364,200 USD
32%: 364,201 – 462,500 USD
35%: 462,501 – 693,750 USD
37%: >693,751 USD

Tax Brackets For Married Tax Payers Filing Separately


10%: 0 – 11,000 USD
12%: 11,001 – 44,725 USD
22%: 44,726 – 95,375 USD
24%: 95,376 – 182,100 USD
32%: 182,101 – 231,250 USD
35%: 231,251 – 346,875 USD
37%: >346,876 USD

Tax Brackets For Head Of Household Tax Payers


10%: 0 – 15,700 USD
12%: 15,701 – 59,850 USD
22%: 59,851 – 95,350 USD
24%: 95,351 – 182,100 USD
32%: 182,101 – 231,250 USD
35%: 231,251 – 578,100 USD
37%: >578,101 USD
Single taxpayer yearly income = 70,000 USD
10% * 10,275 = 1028
12% * 31,499 = 3780
22% * 28,224 = 6209
6209+3780+1028 = 11,017

Yearly income tax = 11,017 USD

Married Taxpayer yearly income = 140,000 USD
10% *22,000 = 2,200
12% *67,450 = 8,094
22% *24,650 = 5,423

Yearly income tax = 15,717 USD

In the United States, taxes are withheld from an employee’s paycheck by their employer. The employer is then responsible for remitting those taxes to the appropriate government agencies. Employers are also required to make contributions to social security and Medicare on behalf of their employees. These contributions are typically a percentage of the employee’s income.

Employer Contribution

Exept for Texas, all states require the employers to contribute to the worker’s compensation program. This compensation is a medical insurance that varies from state to state and worker class codes, and is available only to employees who are injured on the job. Contact us for more details regarding your specific enquiry.

Employers pay 6.2% of contributions to the Federal Unemployment Tax Act (FUTA), for a maximum of USD 7000 per year.

Additionally, the State Unemployment Tax Act (SUTA) and the State Unemployment Insurance (SUI) are also paid by the employer. Each state has either of the two (in addition to FUTA), with different rates, caps and requirements.

It’s important to notice that some states may have additional state taxes that will impact the final cost for an employer.

Social Security

Federal social security tax is charged on all income up to a defined limit (updated every year by the Social Security Administration SSA). Together with Medicare taxes, these are also known as FICA Taxes (Federal Insurance Contributions Act).

The FICA rate (for 2023-2024) is 15.3% of income (12.4% social security and 2.9% Medicare), with a maximum limit of USD 168,600 for 2024, and is split evenly between employer and employee.

The Federal Insurance Contributions Act (FICA) requires U.S. employers to withhold social security and Medicare contributions from employee paychecks. As of 2020, the employer contribution rate for social security is 6.2% of an employee’s taxable wages, while the Medicare rate is 1.45%.

Medical Insurance

Employers with 50 or more employees are required to offer affordable healthcare coverage insurance plans. These businesses must act in accordance with the Affordable Care Act (ACA) or be compelled to a shared responsibility payment by the Internal Revenue Service (IRS).

Benefits in the USA are a common appeal for companies who wish to attract high quality talent. These benefits include but are not limited to:

  • Medical insurance
  • Stock options
  • Dental insurance
  • Pension fund (called the 401k in the USA)

Most Attractive Benefits To Employees

In the United States, benefits and perks are often seen as key factors in determining whether or not to accept a job. In fact, a recent study found that 40.2% of employees considered flexible hours to be a must-have benefit, while 33.6% said that paid insurance premiums were key.

Other popular benefits included paid family leave (29.2%), regular remote work (26.4%), and financial assistance with professional certifications (26.3%).

While these benefits are certainly important to many workers, it’s important to remember that they come at a cost to employers. As such, businesses need to carefully consider which benefits they can afford to offer in order to attract and retain the best talent.

One way that employers can offset the cost of benefits is by offering contributions to employees’ retirement accounts. This not only helps to attract and retain workers, but it also provides a valuable financial benefit to employees.

In the United States, employer contributions to retirement accounts are typically made through a 401(k) plan. Under this type of plan, employers can choose to match a certain percentage of employee contributions, up to a certain amount. For example, an employer might choose to match 50% of employee contributions up to $5,000 per year.

Working Hours Per Week

The work week in the United States is 40 hours per week, typically from 9am to 5pm Monday to Friday. According to the Fair Labor Standards Act (FLSA), nonexempt employees 16 years old or older must receive overtime pay for hours worked over 40 per week.

Overtime

In the United States, overtime is typically paid at a rate of 1.5 times the employee’s regular rate of pay. However, there are laws in place that dictate when overtime must be paid, and how much.

Employees in the United states may be terminated at any time, without notice & for any reason as long as it is not for discriminatory reasons such as race, gender, or sexual orientation. Discrimination based on race, gender, or sexual orientation is against the law in the USA. Employees in the USA can quit at any time with or without giving a notice.

Severance

Unless otherwise stated in the employee’s labor contract, there are no laws in the United States that entitle terminated employees to severance packages. However terminated employees must be paid in full for the hours they have worked since their last paycheck.

Most severance packages will include a severance check and continuation of health insurance coverage. Some employers may also offer outplacement services to help the employee find a new job.

Employment Contract

There is no legal requirement in most states for a formal employment contract. Most employment in the US is carried out on an ‘At-Will’ basis, meaning that it can be terminated at any time. More formal contracts, with notice periods, are generally only used for some senior positions.

An Employment Contract is a legally binding agreement between an employer and employee. It sets forth the rights and duties of each party, and outlines the terms and conditions of employment. Employment Contracts are governed by state and federal law, as well as common law principles.

Most Employment Contracts in the United States will include the following information:

– The type of employment the contract is for (full time, part time, or seasonal and permanent or temporary)

– The start date and location of employment

– The employer’s information

– The employee’s information

– The employee’s job title and average work schedule (e.g. 37.5 hours a week)

– The probation period

– How the employee will be paid (hourly, salary, etc.), how much they will receive, and how often they will receive payment (weekly, biweekly, etc.)

– Additional details like vacation time, notice required for termination, confidentiality and non compete.

Employment Contracts may also include other terms and conditions that are specific.

Probation Period

The majority of employment in the US takes place on an ‘At-Will’ basis. This means employees can be terminated at any time, for any reason, by either employee or employer.

Sick Leave

There is no federal (countrywide) law that mandates sick pay or leaves. But several states specify sick leave requirements.

Maternity Leave

There is no requirement in the US to provide paid maternity leave. The Family and Medical Leave Act states that employers with 0 employees or more must provide up to 12 weeks of leave and protect the job of the new mother or adoptive mother. Additionally, several states have adopted laws extending this requirements to smaller companies, but the majority of small companies in the USA do not need to offer paid or unpaid maternal leave.

FMLA Leave

FMLA leave is a federally mandated type of unpaid leave that allows employees to take up to 12 weeks off for family or medical reasons. The employee’s job is protected during that time, and they still have access to group health benefits. FMLA leave is required from private employers with 50 or more employees in the United States.

Specific situations that qualify for FMLA leave include:

– Birth or adoption of a child or placement of a foster child

– Serious health condition of the employee, spouse, child or parent

– Certain needs based on the military status of a spouse, parent or child.

Jury Duty Leave

If you have an employee who is summoned for jury duty in the United States, you are required to give them unpaid leave. However, some states and localities may require you to pay your employees for their time on jury duty.

Military Leave

If you have any employees who are uniformed service members, you need to follow military leave laws set forth in the Uniformed Services Employment and Reemployment Rights Act. These laws require employers to provide unpaid leave for employees who are called to military duty, as well as reinstate them in their civilian positions when they return. Employees on military leave are also entitled to continue their employer-provided health insurance for up to 24 months. This law applies to businesses of all sizes and includes all employees, even part-time staff members.

Public Holidays In The US

There are 10 public holidays in the USA, however employers are not obligated to give time off, paid leave or overtime pay for these holidays.

  • New Years Day – Jan 1
  • Birthday of Martin Luther King, Jr. – Jan 15
  • George Washington’s Birthday – Feb 22
  • Memorial Day – Last Monday of May
  • Independence Day – Jul 4
  • Labor Day – First Monday of Sep
  • Columbus Day – Oct 10
  • Veterans Day – Nov 11
  • Thanksgiving Day – 4th Thursday of Nov
  • Christmas Day – Dec 25

Paid Leave In The United States

Employees in the USA are not entitled to paid leave by law, however 14 days annual paid leaves per year is standard.

While many employers do give their employees paid leave for public holidays, this is not required by law. Employers may choose to give paid leave, time off or overtime pay for these holidays, but they are not obligated to do so.

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