Hiring guide · Americas
How to hire in United States
To hire in the United States you need either a US entity registered for payroll tax in the employee's state, or an Employer of Record that already holds those registrations. Employer statutory cost runs roughly 10–15% of salary, plus health benefits, and payroll is usually semi-monthly.
- Currency
- USD
- Payroll cycle
- Semi-monthly
- Employer cost
- ~10–15% + benefits
- Notice
- At-will, none statutory
The talent market in United States
The US is the deepest market in the world for senior product, engineering, AI and enterprise commercial talent, and it is usually the first country where a distributed team becomes strategically unavoidable. Compensation benchmarks sit well above most other markets for equivalent seniority, and equity is an expected component of a competitive offer.
The complexity is jurisdictional rather than legal. Employment is federal law layered under fifty state regimes, each with its own payroll tax registration, unemployment insurance account, wage-statement rules and paid-sick-leave mandate. Hiring one person in a new state creates an ongoing filing obligation there.
Salary benchmarks in United States
Indicative annual gross base salary in USD for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | USD 130,000 – 175,000 |
| Senior software engineer | USD 170,000 – 230,000 |
| Account executive (SaaS) | USD 90,000 – 130,000 base + variable |
| Customer support specialist | USD 50,000 – 70,000 |
Employment rules and payroll in United States
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
40 hours; overtime rules under FLSA for non-exempt roles
Probation
Not a legal concept; at-will from day one
Notice period
None required, though two weeks is customary
Paid leave
No federal minimum; 15–20 days PTO is market
Public holidays
11 federal holidays, not legally mandated as paid
Payroll cycle
Semi-monthly or bi-weekly, set by state law
Employer contributions
FICA 7.65%, plus FUTA and state unemployment insurance
Contractor, EOR employee or your own entity?
Three ways to engage someone in United States. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in United States
The IRS common-law test and state tests such as California's ABC test both look at control, integration and economic dependence. A misclassified contractor exposes you to back taxes, unpaid overtime, benefit reinstatement and penalties — and California, New Jersey and Massachusetts enforce aggressively.
Work permits and right to work
Work authorisation is checked through Form I-9 within three business days of the start date, and an EOR partner completes it as the legal employer. An EOR cannot sponsor most employment visas: H-1B, L-1 and O-1 petitions require the sponsoring entity to be the one directing the work, so a US entity is generally needed for sponsorship.
Hire in United States without an entity
Our Employer of Record page for United States covers statutory cost, compliance obligations and onboarding timelines in detail, through licensed in-country partners.
EOR in United States- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in United States: frequently asked questions
Can we hire a US employee without a US entity?
Yes. A US Employer of Record employs the person under its own entity and state payroll registrations, so you can hire in any state within a few days without incorporating, appointing a registered agent or opening unemployment insurance accounts.
What does a US employee actually cost above salary?
Budget roughly 10–15% of salary in statutory cost — FICA at 7.65%, federal and state unemployment insurance and workers' compensation — plus the employer share of health, dental and vision, commonly USD 500–1,200 per employee per month.
Can a US contractor be converted to an employee?
Yes, and it is often the safer path once the person works fixed hours under your direction. Conversion through an EOR takes a few days; the main considerations are back-dating exposure, equity treatment and whether accrued time off carries across.
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Get the United States Hiring Cost Guide
A country brief covering fully loaded employment cost in USD, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for United States.