Hire & Pay Employees in the United States
With PamGro, your business can easily hire employees in the United States. No more worrying about local laws, complex tax systems, or managing international payroll.
CapitalWashington D.C
Currency USD (United States Dollar)
LanguagesEnglish
GDP per Capita$83,060
Payroll FrequencyBiweekly and Monthly
Employer TaxVaries based on States
Overview
Traverse United States's Recruitment Market with ease.
The United States of America (USA) boasts a dynamic and diverse economy, making it a prime destination for businesses seeking growth opportunities. Understanding the intricacies of the US employment landscape is essential for companies looking to establish a presence in this vibrant market.
01
Benefits of hiring in the United States
Employing talent in the USA offers numerous advantages, including access to a highly skilled workforce, a culture of innovation and entrepreneurship, and a vast consumer market. Additionally, the USA’s business-friendly regulations and robust infrastructure make it an attractive destination for both domestic and international companies.
02
Challenges when expanding into the United States
Expanding into the USA presents unique challenges, such as navigating complex legal and regulatory frameworks, understanding diverse market dynamics across states, and adapting to cultural nuances. However, with strategic planning and market research, these challenges can be overcome to unlock the vast potential of the US market.
03
Cultural Nuances
Navigating cultural nuances is essential for success in the US business landscape. Americans value individualism, innovation, and a strong work ethic. Clear communication, respect for diversity, and a collaborative approach are key to building successful relationships with employees and stakeholders.
Employment Contracts in the United States
Minimum Wages & Salaries
The federal minimum wage sets a baseline for employee compensation, with individual states and municipalities often implementing higher minimum wage rates. Additionally, salaries vary significantly based on factors such as industry, location, and experience.
Probation period
While there is no mandated probation period at the federal level, some employers may choose to implement probationary periods to assess new hires’ performance and fit within the organization.
Severance Pay
While not mandated at the federal level, some employers may offer severance pay as part of employment contracts or company policies, particularly in cases of layoffs or involuntary terminations.
Termination Requirements
Termination of employment in the USA is subject to various legal considerations, including adherence to employment contracts, compliance with anti-discrimination laws, and providing notice or severance as per contractual agreements or state regulations.
Notice Period
Notice periods for termination vary depending on factors such as employment contracts, state laws, and the nature of the termination. Employers are typically required to provide advance notice or payment in lieu of notice to terminated employees.
Everything you need to hire in the United States
Leave Policy
Annual Leave:
Paid vacation leave policies vary among employers, with some offering a set number of days per year or a flexible time-off policy based on tenure and job level.
Parental & Maternity Leave:
The USA does not have federally mandated paid maternity or paternity leave, but many employers offer these benefits as part of their employee benefits package or adhere to state-level regulations.
Sick Leave in United States:
Paid sick leave policies vary by state and employer, with some states enacting laws requiring employers to provide a minimum number of paid sick days annually.
Statutory Time Off/Public Holidays:
PamGro observes 6 commonly recognized holidays in the United States. There are also 5 holidays that are recognised by the Federal Reserve, and employers have the choice whether to offer these days off based on what works best for the employee and the employer’s business needs.
Statutory Time Off
- New Year’s Day: January 1
- Memorial Day: Last Monday in May
- Independence Day: July 4
- Labor Day: First Monday in September
- Thanksgiving Day: Fourth Thursday in November
- Christmas Day: December 25
The following holidays are recognised by the Federal Reserve, where the Federal Reserve and most banks close, and employees of the Federal government are given a day off:
- Martin Luther King Jr. Day: Third Monday in January
- President’s Day: Third Monday in February
- Juneteenth: June 19
- Columbus Day: Second Monday in October
- Veteran’s Day: November 11
Working hours40 hours per week
Holidays per year 13
Minimum wage per month None
Annual vacation leave (min)25 days
Parental Leave 480 days per child
Competitive Benefits Package in the United States
PamGro allows you to provide localized benefits for employees in the United States within minutes.
Health Insurance
Vision Insurance
Pension or 401(K)
Dental Insurance
Life and Disability Insurance
Payroll & Taxes in the United States
Payroll Cost
The employer cost is generally estimated at 9.50%-12.50% (depending on the state) of the employee salary.
– Social security – 6.2% up to a yearly limit of USD 9,932.40
– Medicare – 1.45%
– Federal Unemployment – 0.60% up to a yearly limit of USD 42
– State Unemployment – 1%-4% with yearly limits based on the state
– Worker’s Compensation – 0.25%-0.30%
– Payroll Tax (California only) – 0.38%
Overtime Pay:
Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.
Overtime payment is mandatory for certain types of work and roles at both the Federal level under The Fair Labor Standards Act (FLSA) and in certain states. Certain roles and types of work may, however, be exempt from mandatory overtime requirements. For these exempt roles. Overtime is considered included in the salary.
Taxes in the United States
As of 2022, the USA income tax brackets are the following for single taxpayers:
- Up to USD 10,275: 10%
- USD 10,276 to USD 41,775: 12%
- USD 41,776 to USD 89,075: 22%
- USD 89,076 to USD 170,050: 24%
- USD 170,051 to USD 215,950: 32%
- USD 215,951 to USD 539,900: 35%
- Above USD 539,901: 37%
As of 2022, the USA income tax brackets are the following for married taxpayers filing jointly:
- Up to USD 20,550: 10%
- USD 20,551 to USD 83,550: 12%
- USD 83,551 to USD 178,150: 22%
- USD 178,151 to USD 340,100: 24%
- USD 340,101 to USD 431,900: 32%
- USD 431,901 to USD 647,850: 35%
- Above USD 647,851: 37%
Calculate the payroll of an employee in the United States?
Solutions
Guides
Resources
