EOR in the United States refers to an Employer of Record service that allows businesses to hire employees without establishing a local entity. The EOR manages all administrative tasks such as payroll, tax compliance, employee benefits, and labor law compliance on behalf of the company, ensuring that they meet U.S. employment regulations. This enables businesses to quickly expand in the U.S. while minimizing legal and operational risks.
Employer of Record (EOR) USA
Expand your team in USA without the hassle of setting up a local entity—hire, onboard, and pay employees with complete compliance through Globaine.
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Start Hiring in USA
Simple & Compliant Hiring with Globaine's Employer of Record (EOR)
Hire in the USA with Confidence
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in USA is handled efficiently and in full compliance with local regulations.
Fast Time-To-Hire
Onboard employees in as little as 12 hours.
Cost-Efficient
The most affordable solution on the market, saving you time and money.
Compliant Contracts
We draft contracts compliant with federal and state labor law.
Global Reach, Local Expertise
Hire not just in USA, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.
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in the usa
A valid employment contract in the USA requires mutual agreement between employer and employee, covering key terms such as salary, job role, and benefits. It must comply with U.S. labor laws, including wage, safety, and anti-discrimination regulations. Both parties must have the legal capacity to enter into the contract.
While many states follow “at-will” employment laws, having a written contract is essential for certain roles, particularly for high-level positions, contractors, and when offering specific employment terms that differ from the norm.
Salaries should be expressed in US dollars and can be mentioned as annual, monthly, or hourly figures, depending on the nature of the role. It’s essential to specify how frequently the employee will be paid (weekly, bi-weekly, or monthly).
Common clauses include non-compete agreements, intellectual property ownership, and confidentiality agreements. These are crucial for protecting business interests, especially in specialized roles.
Choosing an Employer of Record (EOR) in the USA offers significant benefits for businesses. It ensures full compliance with U.S. labor laws, simplifies payroll processing, and reduces the risks of legal liabilities. With an EOR USA, businesses can efficiently hire employees, manage employee benefits, and expand operations across the United States without the need for a local entity.
in the USA
1. What are the key steps in employee onboarding in the USA?
Employees must complete tax forms (W-4), provide valid identification for I-9 forms, and enroll in company benefits if offered. Background checks are common for certain industries and roles.
2. When should employees complete re-hire checks in USA?
Pre-hire background checks and drug tests (if applicable) should be completed before the employee starts. These requirements vary by industry and role.
3. What documents are required for onboarding in USA?
Employees typically need to submit tax documentation (W-4), direct deposit information, and proof of eligibility to work in the USA (I-9 form).
4. Why businesses in the USA need EOR services?
5. How does EOR in the USA different from other countries?
in the usa
Salaries are typically paid bi-weekly or monthly, depending on company policies. It’s common for salaried employees to receive consistent paychecks, while hourly employees are compensated based on hours worked.
Remote employees should be compensated according to federal and state wage laws. Payroll systems should account for state-specific taxes, and any work-from-home allowances should be specified in the contract.
The federal minimum wage is currently set at $7.25 per hour. However, many states and localities have established higher minimum wage rates to reflect the cost of living. For example, California’s minimum wage is $15.50 per hour, and some cities, like Seattle, have rates that exceed $17 per hour.
Payroll compliance ensures that employers meet federal, state, and local tax obligations, including Social Security, Medicare, and income tax withholding. Non-compliance can result in penalties.
in the USA
1. What are the federal income tax rates in the USA?
The USA has a progressive income tax system, with federal tax rates ranging from 10% to 37%, depending on the employee’s earnings.
2. How does the tax system apply to non-residents in USA?
Non-residents are subject to different tax rules, with a flat 30% tax on income earned in the USA unless reduced by a tax treaty between their home country and the USA.
3. When should tax returns be submitted in USA?
Annual tax returns are due by April 15th for the previous tax year. Employers are responsible for withholding income taxes from employees’ salaries and reporting them to the IRS.
4. What social security contributions are required in USA?
Employers must contribute 6.2% of an employee’s salary to Social Security, and employees must contribute an equal amount. Additionally, Medicare contributions amount to 1.45% from both parties.
in the USA
There is no mandatory annual leave requirement in the USA. However, most employers offer 10-15 days of paid vacation per year, with additional time off for sick leave and personal days.
Leave policies vary by employer. Some companies allow employees to start using leave after their probation period, while others offer leave from the start.
Under the Family and Medical Leave Act (FMLA), employees are entitled to 12 weeks of unpaid leave for maternity or paternity leave, provided they meet specific eligibility requirements.
Federal holidays include New Year’s Day, Independence Day, Thanksgiving, and Christmas, among others. Employers are not legally required to provide paid time off for these holidays but often do as part of company policy.
BENEFITS
in the USA
1. What benefits are mandatory in the USA?
Employers must provide Social Security and Medicare contributions. Health insurance is not mandatory for small businesses, but companies with 50 or more employees must offer it under the Affordable Care Act (ACA).
2. What common benefits are offered in the USA?
Common benefits include health insurance, retirement plans (401k), and paid leave. Employers also offer perks like bonuses, wellness programs, and flexible working arrangements to attract and retain talent.
3. How is health insurance structured in the USA?
Employers often cover part of the health insurance premium, with employees paying the remainder. The coverage may include medical, dental, and vision plans, depending on the employer’s offerings.
4. What additional benefits are common in the USA?
Terminations
in the usa
The USA follows “at-will” employment practices, meaning employees can be terminated at any time, without notice, as long as the termination is not for an illegal reason, such as discrimination.
Employees can be terminated without notice under at-will employment. However, certain exceptions apply, such as contracts that specify notice periods or if termination violates anti-discrimination laws.
Severance is not mandatory but may be offered as part of an employment contract or company policy. If offered, it is typically based on the length of service and job position.
Mutual termination occurs when both employer and employee agree to end the employment relationship. This can involve negotiating severance pay and waiving future legal claims.
FAQs
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in the USA?
By using Globaine’s EOR, companies save on legal fees, HR setup, and ongoing compliance costs, which are significantly higher when establishing a local entity.
3. How does Globaine guarantee fast onboarding within 12 hours in the U.S., and what processes are in place to maintain this speed?
At Globaine, we understand that time is of the essence, especially for businesses looking to expand quickly in the U.S. market. Our commitment to fast onboarding within 12 hours hinges on a streamlined process designed to eliminate delays and ensure compliance with local regulations.
4. Can Globaine handle complex employment scenarios in the USA, such as managing terminations and compliance with state-specific laws?
Yes, Globaine can handle complex scenarios like terminations, adherence to state-specific regulations, and ensuring compliance with employment laws across different states.
6. How does Employer of Record work in the USA?
An Employer of Record (EOR) in the USA works by officially employing staff on behalf of a company, while the business retains control over day-to-day operations and job responsibilities. The EOR manages critical tasks such as payroll, tax compliance, employee benefits, and ensuring adherence to U.S. labor laws. By outsourcing these administrative functions to the EOR, businesses can hire employees in the USA quickly and efficiently without the need to set up a local entity, reducing legal and operational risks.
