Do you want to hire an employee in the United States without a permanent establishment but need an American payroll? IPS can help you hire and pay employees in the USA in compliance with the law, even without an American branch or permanent establishment in the US.
There is only one way to hire an employee in the USA without a permanent establishment:
- Employer of Record (USA) – Your employee will be hired directly by our US company and will be deployed to you full time. Thus, he is payrolled according to American law, but works full time for your company. This is also known as employee leasing or Professional Employment Organization.
Contact us to find out how the Employer of Record USA solution can help your company. We will be happy to consult with you and find the best solution for your company.
IPS is your global payroll solution for successful and rapid international expansion without a permanent establishment.
Remote Work Full Time from the USA – Information for Hiring Employees in America.
To make sure that you succeed directly abroad, IPS as your international payroll partner is here to assist you in hiring your employees correctly in the USA and in preparing American payroll in compliance with the country and state. Below is some information to help you understand the American payroll system.
Depending on the state in which the employee lives, employer costs can vary widely, ranging from 11% to 24% on top of gross salary. Some states charge additional amounts for state disability insurance, state unemployment insurance, or state workers’ compensation insurance. Contact us so we can give you an estimate of the total employer cost.
As your international payroll company in USA, we will make sure that your employee is hired correctly and payrolled according to both state and national rules.
How often per month an employee is paid varies widely in the United States. Employees can be paid weekly, every two weeks, or monthly. With an international payroll service in the US like IPS, we make sure you don’t pay more than you need to and that all payments are made on time.
Each state has different legal holidays. An employer is not required to give this day as paid time off but many do. The following 11 apply in all states:
- January 1
New Year’s Day
- Monday between Jan. 15 and Jan. 21
Martin Luther King’s birthday
- 3rd Monday in February
- Monday between May 25 and 31
- June 19 – Juneteeth
National Independence Day commemorating the emancipation of enslaved African Americans
- July 4
- First Monday in September
- 2nd Monday in October
- November 11
- Thursday between November 22 and 28
- December 25
An employer in the U.S. is not required by federal law to offer paid sick leave. Some states have different rules and require a minimum amount of paid sick leave. Many employers do offer a specific amount of paid sick days.
When an employee becomes ill, an employer complies with the FMLA (Family Leave and Medical Act), which ensures that the employee receives up to 12 weeks of unpaid, job-protected leave per year. An employer may also decide to offer a certain number of paid sick days. Once these are used up, the employee will receive unpaid leave.
Termination / Severance
In most states, the “at-will” employment rule applies. These state that employment is voluntary and can be terminated at any time. A reason for termination is not required as long as the employee is not terminated for discriminatory reasons (such as gender, race, or religion).
Severance pay is not required, although different practices apply in different states. Sometimes severance pay can be used to reach an agreement with an employee to avoid future claims.
To assist you in the termination process, IPS’s international payroll service is just what you need.