PEO/Employer Of record in the USA
Hire staff in the USA while we manage all employment and HR operations. No local company is needed!
PEO/Employer of Record in the USA - Hire Employees Compliantly
We are a Professional Employer Organization (PEO) that provides Employer of Record services in the United States, also known as “employment solutions” or “PEO solutions”.
Many companies opt to outsource their employment to minimize costs and legal risk when expanding their business operations in the USA.
We can help foreign companies navigate through American employment laws and requirements, saving you time so you can focus on core business activities.
While all employment, HR, administrative and legal matters are outsourced to us, you are able to have a physical presence in the United States without the need to set-up a legal entity.
Entity Not Required
Foreign clients do not need to register a legal entity in the United States when using PEO services.
100% compliant
We strictly follow official compliance guidelines to ensure a safe legal environment for all clients.
Fast Market Entry
We will help you to hire and onboard employees within one week.
Complete PEO package for efficient and compliant employment
- Local Contract Signature
- Monthly payroll calculation and delivery
- Individual Income Tax compliance with American authorities
- Statutory benefits administration
- Medical Insurance
- Visa application (foreign employees)
- Expenses claim management
- Allowances, bonus, and commissions
On-board staff in the United States without any risks
Operate in the American Market
Procedure to Use a PEO
Operate in the American Market
There are different situations in which foreign companies tend to outsource employment and use a PEO solution for expansion in the United States, including:
- Companies requiring to on-board local staff to manage operations like client meetings, sales, quality control, marketing activities, etc) but the company strategy does not require the setup of local company in the USA.
- Foreign SME testing the American market before opening a company and that want to conduct market research and exploration activities.
- Companies with an independent contractor that they want to base in the United States.
- Companies that need to hire staff while waiting for the successful registration of the company in the USA.
- Companies that intend to maintain a small business in the United States after they successfully deregistered their company.
Procedure to Use a PEO
We support you in every step of the staff onboarding. All payment and payroll details are accurately recorded and shared with you in a secure manner.
About the procedure:
- Your company drafts the employee’s labor conditions including salary, benefits, leaves, bonus, etc.
- After confirmation, we prepare a compliant and bilingual employment contract.
- After the contract is signed, we issue an invoice with all the payroll cost for the employees.
- After the payment, we take care of all the on-boarding process and completes the mandatory and administrative procedures, while you focus only on the communication with your staff in the United States.
- On a monthly basis, after your payment, we deliver the salaries to your employees and pay all the required contributions and taxes to the local authorities.
Employment and payroll regulations in the USA
Table of Contents
Employment contracts
Importantly, 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.
Annual Leave
The US is unusual amongst western countries, as there is no legal requirement for paid holidays for employees. This contrasts strongly with areas such as the UK and Europe, where 20 or more paid holiday days are standard.
Many employers choose to give employers around 10 days of paid vacation per year, but this is up to each company to decide.
Sick Leave
Sick leave is managed differently. There is no federal (countrywide) law that mandates sick pay or leaves. But several states specify sick leave requirements.
Maternity Leave
Unlike in many countries, there is no requirement in the US to provide paid maternity leave. The Family and Medical Leave Act state that employers must provide up to 12 weeks of leave and protect their job.
Public Holidays
The same legal requirements apply to public holidays, of which there are eight each year. There are no requirements in law for a company to give time off, or to pay employees if they do offer it.
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.
As such, there is no need to define a formal probationary period, although many companies do set this as 90 days.
Severance pay
There is no requirement here for any severance pay when employees are dismissed. Some employers will offer this, based on length of service, but many will not.
Social Security
Social security tax is charged on all income up to a defined limit. Together with Medicare taxes, these are also known as FICA Taxes (Federal Insurance Contributions Act).
The rate (for 2020 and 2021) is 12.4% of income, with a maximum limit of $137,700 for 2020 (rising to $142,800 in 2021). This is split between employee and employer, with 6.2% taken out of employee pay and 6.2% contributed by the employer.
Federal Individual Income Tax
Federal income tax should always be deducted through payroll. Like in most countries, US income tax is a progressive tax based on income, with higher rates paid just on higher income bands. It is fully deducted from employee salary.
Minimum Wage
The nationwide minimum wage in the US is $7.25 per hour (in 2020). This is defined in the Fair Labor Standards Act (FLSA) and has not changed since 2009. However, many individual states have set minimum wages higher.