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.
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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
Table of Contents
United States Dollar (USD)
Washington D. C.
Bi-Monthly / Monthly
Through its relatively short life, so far, as a country, the United States is known for innovation and the ability for people to prosper.
The United States grants a lot of decision-making power to individuals, employers, cities and states, allowing different entities to enact their own rules and regulations that may be in addition to any federal legislation.
Federal, state and municipal leaders all have authority to legislate, regulate and tax residents.
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.
The Importance of Small and Medium-sized Companies
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.
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.
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:
It’s worth noting, technological advances, including machine learning and artificial intelligence (AI), fueled growth in other sectors in the U.S., as well.
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.
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.
The Texas city used to be best known for its music, but recently Forbes put it on its list as a “top innovative city.”
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.
Business Culture in United States
• Stand Back
Even pre-COVID, close physical contact was frowned upon among American business people.
• Risky Business
Americans are known for taking big risks to gain big rewards. Very different from most other countries around the world, Americans want to be known as rebels or mavericks, even on the business scene.
Developing relationships is important to U.S. citizens; it’s just not a business goal.
• The Direct Approach
Americans are known for being far more casual than their counterparts in other countries in the world.
This extends to the business dress code and simple communication. Americans are usually focused on closing the deal and don’t mind some conflict in the meeting room, if that’s what it takes.
United States Gastronomy: regional and traditional cuisines
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.
|Country||United States of America|
|Num. States / Province||50 states|
|Principal Cities||New York, Los Angeles, San Francisco, Boston, Seattle, Miami|
No official language but the most commonly
used is American English
|Local Currency||U.S. Dollar (USD)|
|Thousands Separator Format||99,999,999.99|
|Country Dial Code||+1|
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)
|Border Countries||Canada & Mexico|
|Continental surface||9,831,510 km2|
|Fiscal Year||October 1 – September 30|
Federal minimum wage is $7.25/hour.
Some cities or states set a higher rate but it can’t be lower.
|Taxpayer Identification Number Name in the country||TIN|
|Current President||Joe Biden|
What you need to know about employing personal in United States:
Laws and Agencies that regulate labor relationships
|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|
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.|
In the U.S. there are no minimum requirements for an employment contract.
The International Labor
|Member of the ILO Governing Body.|
|Work Hours||Traditionally 9 am – 5 pm, Monday through Friday, with a one hour lunch break|
Labor contracts are not required in the U.S.
Legal Benefits in America
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
Federal flat rate corporate tax
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.
The Labor Code provides for public holidays that are observed in the United States.
New Year’s Day
Monday that falls in January 15-21
Martin Luther King, Jr. Day
Monday that falls February 15-21
Monday that falls in May 25-31
Columbus Day/Indigenous People’s Day
Thursday falling in November 22-28
In the U.S. there are no minimum requirements for an employment contract.
Type of Termination
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.
It’s called “wrongful termination” when an employer fires an employee for an illegal reason. This could include sex, religion, disability or ethnic background.
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
**Only in some states, each year of employment
One to two weeks’ wages
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