Employer Of Record Services USA
Infotree Global Solutions assists you streamline your business expansion in USA with professional employer of record services. Our services help you have your employees onboard while saving your time in establishing a new setup. It means that you can kick start your business operations in USA without delay. By becoming your US employer of record, we let you take advantage of our global network and resources to compliantly hire and manage international workers. Our experts handle payroll, hiring & legal formalities on your behalf. With Infotree Global, you can reduce risk, cost, time and efforts required for a new set up and stay focused on global business expansion.
Starting a business or employing in USA– Here is the required information that clarifies the various factors of hiring in USA.
Table of Contents
• Hiring in United States
• Visa and Work Permits in USA
• Setting up Payroll in USA
• Payroll and Tax in USA
• Employee Entitlements
• Setting up a Company in USA
• USA Employment Compliance
• Benefits of USA Hiring Outsourcing
• Why Infotree Global Solutions?
Hiring in United States
Employment laws in USA can vary from state, federal, and local sources making it difficult to figure out the suitable ones for employers looking for expansion. For example, federal law recommends a higher minimum wage rate as compared with the state law. On the contrary, state law may ask employers to maintain a record for a longer time period, unlike federal law. Due to varying standards of liabilities on the employers, it is recommended to consider the assistance of an employer of record US.
Visa and Work Permits in USA
As per USA immigration law, international employees are allowed to work after fulfilling visas and work permit requirements. These work permits must be protected for employees and sponsored by an established entity. It can be an issue for organizations just taking their first step to the US market. If you need to complete the incorporation process, it is better to take the help of an outsourced management company to sponsor the workers for all the essential permits. You need to have a number of documents to obtain a work permit in the USA. These include Form I-129 Nonimmigrant Arrival-Departure Record, copy of electronic Form I-94, and passport and travel document. Besides, you need passport size photos, Form G-28, a copy of last EAD, and a copy of government-issued identity proof. With the help of the employer of record USA, you can apply for a suitable visa for you.
H1B is the most commonly used one. It is the U.S working visa for special occupation professionals. Since it is a non-immigrant visa, it allows international professionals to travel to the U.S and stay in the country on a temporary basis. Non-immigrant visas are easy to acquire and enable people to migrate to the country and stay there permanently.
Types of Work Permits in USA
There is a variety of work visas for foreign employees willing to work and stay in the U.S.
The common work visa categories are:
• E-2 visa for investors
• I visa for international media spokesperson
• H-1B visa for professionals
• H-1C visa for registered nurses
• L-1A/B visa for intra-company employees
• O visas for international persons with remarkable achievements
• TN NAFTA visas for experts from Mexico or Canada
Setting up Payroll in USA
First, the company looking for expansion should determine the state it wants to conduct business operations in USA. Since the rules vary between different states, it is good to learn the employment and payroll concerns else you may find yourself trapped in non-compliance penalties. Besides state tax, you will require to consider federal tax no matter in which part of the country you are. The U.S. presents seven federal income tax categories depending on income. The lowest rate of tax is 10%, while the highest one goes to 37%. Being an employer, you can decide to withhold the federal income tax from your workers’ salaries and forward the amount to the government.
The Fair Labor Standards Act or FLSA enforces employers to follow the guidelines while setting up the payroll. There are many states which choose to establish more robust laws for their own benefits and employers must follow them. The FLSA also demands employers to have the information related to their staff working hours and compensation on record which may be asked for later. Registering your business online by yourself or by an employer of record USA helps you in streamlining the process.
Payroll and Tax in United States
Depending on business operations, there are specific rules for payroll and taxation in the USA. The federal and state payroll tax include Medicare costs, social security, sales tax, and corporate tax. For many companies using an employer of record, it is easy to remain compliant with local laws. As a US company, it is vital to register for the payroll tax and acquire an Employer Identification Number (EIN) to adhere to the federal tax rules. Payroll tax is a state-based tax which is crucial. With a local payroll provider or an EOR, you can simplify the process and ensure compliance with local laws.
All U.S. taxpayers are permitted to have health insurance or pay a penalty. As a part of US custom, the employer should provide varied medical insurance plans to cover a part of the cost. The employee’s sharer of the premiums is included in payroll deductions. No other insurance is recommended by law but companies can offer short-term and long-term disability insurance and life insurance.
While setting payroll in the United States one should be aware that there is a flat 35% corporate tax rate on organizations that have annual taxable earnings equal to or above USD 18,333,333. The progressive tax rate is 15% applicable to firms with a taxable income of below USD 18,333,333. Social Security and Medicare tax are components of the payroll tax. Employers and employees both contribute 6.2% towards social security tax and 1.45% towards Medicare tax.
There are a number of aspects that need to be familiarized with to adhere to the employment laws in the USA. It is vital for organizations planning to start an office and HR department. In general, contracts are not required for employment. However, these can be given to senior-level employees or experts stating their compensation. Legal working hours in the USA are 40 hours with a minimum of 8 hours per day. You can consider taking the assistance of a US employer of record for more accurate details.
There are specific rules on overtime for employees. Any hours crossing 8 hours are considered as overtime. Then employers must pay for overtime which is generally 1.5 times the normal pay rate. For most companies, paid public holidays are only decided as per the company policy. According to the Fair Labor Standards Act (FLSA), employers are not forced to pay workers for the time they have not actively worked in the office. However, as per company policy, holiday pay can be allowed.
Setting up a Company in USA
While setting up a company in USA, you need to consider a few aspects. These include business type, products, industry, and nature of business, nationality, license, and trade agreements.
You need to consider the following steps to set up a subsidiary:
Choose a Business Type
Determining the company type is the first step. You should know whether you want the organization to be limited liability or a corporation. Both kinds of entities have their advantages and disadvantages, so choose wisely that goes well with your own system.
Select a State
When it comes to U.S, there are 50 states. Some of them are more suitable for operating a business than others. Every state has its own set of rules for businesses, so you should be well-aware of what that means for your organization before you set up.
Set Up a Corporate Bank Account
It is a little harder for international businesses to have a bank account in the country but it becomes easy with a U.S. subsidiary. Holding a U.S. bank account will help you manage payroll for your foreign employees.
As accounting and tax laws abound in complications here, so most international businesses also seek expert guidance like EOR during the process of establishing a subsidiary. The EOR Company should file a petition on your behalf addressing the specific details, duties, and dates of employment. It should determine the higher wages to the employees. The next step is to file a Labor Certification Application (LCA) specifying the benefits of employees and after its approval, the company will get a certified copy from the Department of Labor. H1B petition should be filed with the proper USCIS Service office and after processing, the company should get a receipt from the same office. Thus, it involves a crucial and tedious process for which you need to consider taking the employer of record USA services.
US Employment Compliance
There are a few areas that are not specifically highlighted in either state or federal law. In such a scenario, the terms will depend upon the employment contract. An employer of record helps to set out the terms clearly to avoid implied agreements. For example, a probation period may be considered as an implied agreement. It specifies that there will be increased job security once the probation period ends. These services allow you to learn which law is applicable by considering the factors like office location, number of employees, annual revenue, thus saving you from legal troubles. While negotiating terms of employment contract, your US employer of record considers various standard benefits as recommended by the employment laws of USA.
Benefits of USA Hiring Outsourcing
Choosing an employer of record services in USA is the most informed decision one can make. It assists you to hire anywhere in the world with efficiency without setting up an actual office. For a company looking for expansion, it is really challenging to find the best individuals and retain them. By hiring outsourcing services, your EOR steps in to find the eligible in-country workers. Clients can outsource their employee’s payroll, HR, compliance, and in-country outgoing support. It enables you to have control over the responsibilities in the chosen country and saves time too. With EOR services, you can expect your staff arriving in the chosen country smoothly and ready to start their job quickly. Outsourcing can relieve you from the issues associated with in-country liabilities and local laws.
Why Infotree Global Solutions?
Ensuring total compliance with employment laws comes as a major concern for many companies. The complications of laws make it vital to use US Employer of Record services by Infotree Global Solutions. Right from the drafting of local contracts for workers, we take care of the onboarding and fulfill all the legal formalities for the new country.
Our core objective is to ensure that you can make the most of mobility without a legal entity. Focusing on employee satisfaction, we promise to deliver increased productivity, high efficiency, and revenue. Our EOR model is designed in a way that provides you everything you need at every step of your global expansion journey.
Candidates are mobilized in-country quickly, saving you time, energy, and resources. Our dedicated personal support ensures a stress-free transition of employees around the world. Besides, you will also retain complete control over your employees and their day-to-day tasks. That too, without engaging yourself in the administrative hassles because we overcome them for you.
Using Infotree Global Solutions is the fastest way to deploy local and foreign employees in the USA. Know more about outsourced employment through Infotree Global Solutions.