Employer of record in The United States of America
We make it easy and painless to expand your business into United States. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.
Accelerate your growth into United States compliantly and hassle-free
How we can help you expand in United States
As your EOR in United States we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Your candidate is hired by a PEO in United States provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.
Expand to United States with Serviap Global
Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity.
In just a few days, you can easily and safely build a presence in United States being sure that your staff will be hired in compliance with labor and tax regulations
Quick facts
Currency:
United States Dollar (USD)
Capital:
Washington D. C.
Payroll cycle:
Bi-Monthly / Monthly
Language:
English
The economy
America is a free market economy made up of a union of 50 United States. It’s one of the world’s largest.
While American freedoms are prized highly, the government does step in to regulate, legislate, and tax.
Small and medium businesses
Small- and medium-sized enterprises (SMEs) are highly valued in the United States. SMEs are known around the world for nurturing innovation and technological improvements.
In America, they comprise 99% of employers.
Population
Individuality is prized in the United States citizens diversity is celebrated and rights are given to protect them.
There’s no official language, although Americans mostly speak English wherever they are.
Hollywood, through the years, has created a perception around the world that the country offers glamorous and exciting lives in the U.S., which is an overstatement of real life for an average American citizen.
In the workplace, Americans are well known for tech innovations and valuing entrepreneurship.
Economic opportunities
In the land of opportunity, the entrepreneurial spirit is appreciated and nurtured. Because colleges and universities are welcoming to foreign students, they have excellent opportunities to join the U.S. workforce or even begin a business in America.
Key sectors of the national economy
Some key sectors of the economy are:
• Healthcare
• Technology
• Retail
It’s worth noting, technological advances, including machine learning and artificial intelligence (AI), fueled growth in other sectors in the U.S., as well.
Human talent
Americans are widely known to dream big and achieve a lot. With an entrepreneurial spirit and goals of selfreliance, U.S. citizens have turned out many inventions that have built technological advances around the world.
Even though it lags behind countries like Japan and Finland when it comes to literacy rates, the U.S. is known for producing well-educated people ready to enter the workforce. Many countries around the world pick America when it comes time to carve out their children’s educational future.
College graduates out-earn their peers in the workforce who do not have a college degree; however, college graduates often suffer crushing student loan debt.
Prominent cities for business
• San Francisco
Well known for technical support and innovation, especially the Silicon Valley area where many international companies do business. Other countries often have cities that aspire to its heights.
The area also enjoys excellent universities and Fortune 500 companies.
• Seattle
Sometimes called the “Emerald City,” Seattle is where more than 700 tech organizations have settled to do worldwide business.
• North Carolina
New York, Los Angeles, and Chicago may be the most famous U.S. cities, but three lesser-known American cities are successfully surging onto the tech front. Referred to as the North Carolina Research Triangle, which is made up of Durham, Raleigh, and Chapel Hill, where research and technology go hand-in-hand.
• Austin
The Texas city used to be best known for its music, but recently Forbes put it on its list as a “top innovative city.”
Technological ecosystem
U.S. companies rely heavily on tech solutions to run their businesses every day. Technology and scientific discovery are cornerstones of the U.S. economy.
Facilities for foreign investment
Foreign Direct Investment (FDI) is highest in America than in any other country in the world. As other countries have made positive strides in improving their own economies, the U.S. has begun to actively welcome new investment inside its borders.
Today’s America was carved out almost exclusively by immigrants from other countries searching for a place to make their individual dreams come true.
Gastronomy
It’s true that most Americans love to eat. While the reputation worldwide may be that they crave greasy, salty, junk food, most also appreciate the finer foods in life.
• Pot roast
This literal “meat and potatoes” meal may be America’s number one comfort food. Slow-cooked and usually shared with family and friends, the roast or brisket cooked with potatoes, onions, and carrots to tender and tasty perfection is a big favorite.
• Beef Jerky
Once a cowboy staple on the western range, this high-protein, long-lasting
treat remains a favorite in the U.S. In some rural areas, other meats such as venison are used to make jerky.
• Foreign foods
Americans are happy to add foods that are traditional in other countries and add an American flare. A few examples of foreign food Americans can’t get enough of include Mexican fajitas, Japanese sushi, and Italian fettuccini topped with Alfredo sauce.
General highlights
Capital | Washington, D.C. |
Num. States / Province | 50 states |
Principal cities | New York, Los Angeles, San Francisco, Boston, Seattle, Miami |
Language | No official language but the most commonly used is American English |
Local currency | U.S. Dollar (USD) |
Date format | mm/dd/yyyy |
Thousands separator format | 99,999,999.99 |
Country dial code | +1 |
Time zone | UTC-5Eastern Standard Time (EST) UTC-6Central Standard Time (CST) UTC-7Mountain Standard Time (MST) UTC-7Mountain Standard Time (MST) UTC-8Pacific Standard Time (PST) UTC-9Alaska Standard Time (AKST) UTC-10Hawaii-Aleutian Standard Time (HAST) |
Population | 335,565,000 (2023) |
Border countries | Canada and Mexico |
Continental surface | 9,831,510 km2 |
Fiscal year | October 1 – September 30 |
VAT % | none |
Minimum wage | Federal minimum wage is $7.25/hour. Some cities or states set a higher rate. |
Taxpayer identification number name in the country | TIN |
What you need to know about employing personnel in United States:
Laws and agencies that regulate labor relationships
Laws | Brief description |
See U.S. Constitution, Art. VI | Congress put the National Labor Relations Act (NLRA) in place to regulate interstate commerce, govern the employer/employee bargaining and union relationship on a national level. |
Code of Federal Regulations | Title 29 – Labor |
Internal Revenue Code (IRC) | Written by congress |
Social Security | No matter what an employee earns, everyone pays at the same rate into the Social Security system. The employee pays 6.2% of their earnings each paycheck and the employer matches that amount. (Maximum limit is $142,800.01 annual earnings) |
Key tax and labor authorities
Internal revenue service | This department handles tax. |
Department of Labor | This department handles labor. |
Labor contracts
In the U.S. there are no minimum requirements for an employment contract.
The International Labor Organization (ILO) | Member of the ILO Governing Body. |
Work hours | Traditionally 9 am – 5 pm, Monday through Friday, with a one hour lunch break |
Basic requirements
Labor contracts are not required in the U.S.
Payroll
Legal benefits in America
Overtime | Above 40 hours per week the employee is paid overtime at time and a half the regular rates of pay |
Annual bonus | Completely up to an employer and not required by law |
Occupational risk insurance | Called “workers compensation”, this varies by state. If covered under workers’ comp, when an accident or injury happens that’s not the worker’s fault there are benefits including medical expenses, disability, lost income and survivor benefits |
Vacations or PTO | No federal requirement. Businesses can create their own PTO policies. |
Leaves of absence | • Maternity leave — 12 weeks of unpaid leave Any other sort of leave, and whether that leave is paid or unpaid, is an agreement between the employer and their employee. (whether for a death in the family, sick leave or similar) |
Annual taxable income
Depends on both income level as well as whether the person files as single, married individuals filing joint returns or head of household. Low income people may pay a 10% tax, people earning over $523,600 will pay at a rate of 37%.
Corporate tax rates
Different among provinces. Based on lower and higher tax rates as well as business limits. Not including Quebec and Alberta.
Taxable gross income | Tax rate |
Federal flat rate corporate tax | 21% |
Disability
Social Security disability law decides, based on set rules, who can get Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). And how much money the employee will get.
Because these are federal programs, state and local laws do not apply.
Public holidays
The Labor code provides for public holidays that are observed in the United States.
Date | Holiday Name |
January 1 | New Year’s Day |
Monday that falls in January 15-21 | Martin Luther King, Jr. Day |
Monday that falls February 15-21 | President’s Day |
Monday that falls in May 25-31 | Memorial Day |
June 20 | Juneteenth |
July 4 | Independence Day |
September 5 | Labor Day |
October 10 | Columbus Day/Indigenous People’s Day |
November 11 | Veterans Day |
Thursday falling in November 22-28 | Thanksgiving Day |
December 25 | Christmas Day |
Termination
In the U.S. there are no minimum requirements for an employment contract.
Type of termination | Brief description |
Justified dismissal | An employer can end a worker’s employment if the economy takes a downturn or when the employee is not able to perform well enough. Some states have laws, so an employer can fire an employee with no explanation at all. Generally these are referred to as “at will” states. |
Unjustified dismissal | It’s called “wrongful termination” when an employer fires an employee for an illegal reason. This could include sex, religion, disability or ethnic background. |
Voluntary resignation | Terminating employment either by the employee’s choice or by agreement with the employer. |
There is no law requiring an employer to pay a terminated employee severance. This differs by state. Some employees may receive one to two weeks’ wages for each year worked.
Length of employment | Severance amount |
**Only in some states, each year of employment | One to two weeks’ wages |
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