Countrypedia

Easily manage employment in

USA

Make employment in USA easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in USA, all in one easy-to-use platform.

Capital City

Washington, D.C.

Currency

United States Dollar (USD)

Employer Taxes

7.65%

Population size

334.9 million

Payroll Frequency

Bi-weekly

Services available in this country:

Employer of Record Services
Local Payroll Solutions

Overview:

The United States of America is the third-largest country by land area, located in North America, bordered by Canada to the north and Mexico to the south. It is made up of 50 states and a federal district, spanning diverse landscapes, including mountains, plains, and coasts. The USA is known for its cultural influence, economic power, and technological advancements. Major population hubs include New York City, Los Angeles, Chicago, Houston, and Washington, D.C. The country has maritime borders with Russia, the Bahamas, and Cuba.

Risks of misclassification

USA, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in USA may lead to fines and penalties for the offending company.

Get Compliant Now

Hiring:

The US economy is diverse and robust, led by the services sector, followed by manufacturing and agriculture. Major industries include technology, healthcare, finance, and entertainment, with large metropolitan areas like New York, San Francisco, Los Angeles, and Chicago serving as employment hubs. Graduates are more likely to find jobs that match their skills in these cities due to the concentration of businesses and opportunities.

Graduates enjoy lower unemployment rates than non-graduates and typically have better career prospects, including higher earning potential. There is also significant scope for growth in emerging industries such as renewable energy, AI, and biotechnology.

Recruitment:

In the USA, recruitment is conducted through various channels, including job boards like LinkedIn and Indeed, as well as recruitment agencies and headhunters. Networking events and career fairs also play a vital role in connecting employers with skilled professionals. These methods ensure a smooth and effective hiring process across diverse industries.

Interview:

In the USA, recruitment involves steps like vacancy identification, job advertisements, application screening, and shortlisting candidates. The interview stage is the most decisive, as it allows employers to evaluate a candidate’s personality, problem-solving abilities, and potential fit with the company’s culture. Both technical and behavioral interviews are commonly used to make informed hiring decisions.

Application:

In the USA, resumes play a vital role in the application process, serving as a snapshot of a candidate’s professional achievements and qualifications. The structure, clarity, and relevance of the resume significantly influence an employer’s perception. Well-presented resumes enable early screening, helping recruiters identify candidates who are a strong fit for the position.

Employment:

The standard parameters of employment in the USA:

Working Hours (Depend on the client’s company) – Generally 8 hours a day, 5 days a week, with a 40-hour workweek being the standard.

Probation Period (Depend on the client’s company) – Typically ranges from 3 to 6 months, depending on the company.

Payroll cycles– Pay cycles are usually weekly, bi-weekly, or monthly, varying by employer.

Official Deduction from Salary – Include federal and state taxes, Social Security, and Medicare contributions.

Typical work hours in Australia– 9 am to 5 pm, Monday to Friday, with a 30-60 minute lunch break.

Public Holidays– Federal holidays include Independence Day, Thanksgiving, and Christmas, with variations based on state or company policies.

Casual Leave/Sick Leave– Leave policies vary; some companies provide 10 to 15 days of paid leave annually, while others follow state-mandated sick leave laws.

Maternity & Paternity Leave – Federal law provides 12 weeks of unpaid leave under the FMLA. Some companies offer paid leave as part of their benefits package.

Earned Leave – Vacation policies vary but typically range from 2 to 4 weeks annually, depending on tenure and company policy.

Payroll:

Payroll in the USA adheres to both federal and state regulations, ensuring accurate computation of gross and net income with appropriate tax deductions.

Net Pay = Gross Pay – Taxes (Federal, State, Local) – Social Security & Medicare Contributions

Important Elements of Salary Structure in the USA:

Salary After Tax – The total earnings an employee receives before deductions, including wages, bonuses, and allowances.

Salary After Tax (Net Income) – The remaining amount after deductions for federal, state, and local taxes, as well as Social Security and Medicare contributions.

Total Tax Due – Includes federal income tax, FICA taxes (Social Security and Medicare), state and local taxes, and additional contributions, if applicable.

Payroll Cycle – Employers commonly follow weekly, bi-weekly, semi-monthly, or monthly pay schedules, depending on company policy.

13th Salary– There is no legal provision for a 13th salary in the USA. However, bonuses may be provided at the employer’s discretion.

Overtime– As per the Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay at 1.5 times their regular pay rate for hours worked over 40 in a week. Exempt employees, usually salaried and meeting specific criteria, are not entitled to overtime pay.

Business Setup:

If you’re a non-citizen interested in launching a business in the USA, it’s vital to understand:

The visa options for entrepreneurs.
The legal requirements for forming a business in the USA.

1. Understand the visa process

The U.S. Citizenship and Immigration Services (USCIS) administers various visa programs for entrepreneurs. Foreign nationals must secure the appropriate visa to legally operate a business.

Key steps in the process include:

Research and apply for the right visa category.
Demonstrate the intent to invest or actively manage a business.
Submit all required documentation, including business plans and financial records, to support your application.

2. Find the right visa for you

Several visa categories cater to foreign entrepreneurs:

E-2 Investor Visa
For individuals from treaty countries investing a substantial amount of capital in a U.S. business.
Provides temporary residency for business operations.

L-1 Visa
For business owners transferring to the U.S. to establish a branch or subsidiary.
Allows managerial or executive-level employment.

EB-5 Immigrant Investor Visa
A permanent visa for entrepreneurs investing at least $1.8 million (or $900,000 in targeted employment areas) in a new business that creates at least 10 full-time jobs.

3. Business Registration Process

Decide your business structure: LLC, corporation, partnership, or sole proprietorship.
Register your business at the federal, state, or local level depending on the structure.
Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes.

4. Taxation and Compliance

Businesses in the USA are subject to federal, state, and local taxes. Tax obligations vary by business structure and location, so consulting a legal or tax expert is recommended.