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💡 OVERVIEW

• Language(s): English
• Currency: US Dollar (USD)
• Capital City: Washington, D.C.
• Population: 335 Million
• Cost of Living Rank: 15th
• VAT (Valued Added Tax): Varies by State

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💡 EMPLOYER TAXES ⇒ 7.65% (estimated)
★  6.2% - Social security
★  1.45% -  Medicare

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Employer of Record (EOR) in United States (USA)

What you'll learn

• Country Introduction
• Tax Breakdown for Employers
• Statutory Leave Laws
• Minimum Wage and Working Hours
• Termination Process
• Additional Information

United States (USA) Introduction

The United States of America (US or USA) is a country in North America consisting of 50 states, a federal district, 5 major unincorporated territories, 9 minor outlying islands, and 326 Indian reservations with limited sovereignty. The country is bordered by Mexico and Canada, and has the largest GDP in the world. The United States is a melting pot of cultures and ethnicities, and its population has been profoundly shaped by its centuries of immigration from other countries.

Paid Leave and Statutory Leave

Parental Leave

Employees can receive 12 weeks of unpaid leave for legal parents upon the birth or adoption of their child. There is no paternity leave entitlement federally, but some states have paid leave policies.

Sick Leave

Sick leave is covered by the same act as parental leave, called the Family and Medical Leave Act (FMLA). It only applies to serious illnesses and allows employees to take 12 weeks of unpaid leave. Some states will offer additional Family, Medical, Maternity, and parental leave that works concurrently or in addition to FMLA.

Paid Leave

There are 10 federal holidays in the US, and there is no statutory requirement to grant employees paid time off (some states do). Employees can qualify for military leave or donor leave.

Wage Requirements and Working Hours

The federal minimum wage is $7.25 per hour and has not been raised since 2009. However, each state has their own minimum wage laws (such as California where it is $15/hr). A standard workweek is 40 hours at 8 hours per day, and overtime work is paid at between 150%-200% of the regular salary.

Termination Process

Process

All states (except Montana) have at-will employment, which means either employees or employers can terminate the employment relationship at any time. Employers can generally terminate employees without any reason, explanation, or warning.

Notice Period

Notice periods of 2 weeks can be included in the employment contract, but there is no statutory requirement.

Severance Pay

Severance pay is not required in the United States, but some employers provide 1-2 months of pay for every year worked at the company.

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