The American Dream is the embodiment of equality, hardwork and capitalizing on new opportunities. It is these three values that have made the USA rank no.6 in the ease of doing business index.
Economically, the USA is one of the largest in the world. The GDP is $20 trillion large with a high consumer spending at $64,000. USA is also known for being a hardcore consumerist market.
There are several advantages to doing business in the USA. People in the USA are highly competent. Talent is simply another commodity.
Being a highly consumer centric market with diverse cultures, there is practically a market for anything in the USA. This is why many businesses rush to expand into the USA, sometimes taking advantage of the resources provided by specialist organizations.
Multiplier’s US PEO and EOR solution enables businesses to stay compliant when hiring and paying employees in the country.
Why Use an USA PEO
Employers partner with a PEO in the US to outclass competitors in their talent acquisition strategy. It is unlikely that an employer in the USA would need the aid of a specialist company given the ease of hiring and firing in the market. However, offloading HR tasks can save both monetary and opportunity costs for the employer.
Factors such as obtaining an Employer Identification Number, withholding taxes, generating compliant employment contracts can take a fair share of time. For bigger businesses, a US PEO can help navigate through the different laws and regulations postulated by the federal and state governments.
Thus employing talent in the USA depends on a range of factors. You also have to consider office location, number of people employed, annual revenue, and the minimum number of employees specified in the particular employment law statute.
Grow with Multiplier’s Professional Employer Organization and Global Employer of Record services into the prolific USA market seamlessly. With our Saas-based solution, you can employ any number of employees, anywhere in the USA with full compliance. Our 1000+ experts worldwide stay cognizant of changes in employment laws. You can offer employment benefits, process payrolls in a few clicks.
US PEO and Employer of Record Costs
Usually, PEOs charge based on two pricing models - fixed and variable. A PEO based on the fixed pricing model charges a transparent fee ranging between $200 - $1000 per employee per month.
Multiplier is one such PEO solution for the USA. The final price depends on the complexity of employment laws of the employee's jurisdiction.
Our prices ensure that you get the most out of your spending. Every employee hired through our US PEO also receives HR support, benefits management, and a live dashboard to track workforce spending in real-time.
How to Hire in the USA
Despite being one of the most employer-friendly markets in the world, many companies partner with services like an USA PEO, to improve the HR experiences they provide to their employees.Employers still have specific obligations to fulfill when creating employment contracts for hiring employees in the USA.
For instance, the USA lays different federal and state level employment laws for the situation. For example, the state laws on minimum wages are different to what the federal laws dictate.
To navigate safely through this complex maze of laws, stay compliant with Multiplier's US PEO. Use our Saas-based solution to create compliant employment contracts in minutes.
In the United States, employment is on an at-will basis. By statutory requirement, this means that both employers and employees are allowed to leave each other anytime without ny reason, expect citing reasons for discrimination.
Although employment is at-will, employers strive to clearly stipulate terms and conditions of employment in a written contract.
It is certainly a dream to employ talent without going through the pain of creating employment contracts that are compliant at every level.
However, employment contracts offer a high degree of security to your employee. Contracts define benefits, payment method, frequency of pay, responsibilities, position. They legally bind the employee and employer to the conditions of the contract.
Use Multiplier’s SaaS-based PEO solution to create fully-compliant employment contracts in minutes.
Refer to the table below to understand the tax slabs in the USA.
According to the Fair Labor Standards Act (FLSA) employers have to pay at least $7.25 per hour as a minimum statutory wage.
You can task your US employees for upto 40 hours a week. The 40 hours is usually spread across 5 days a week.
Any additional hours put by your employee should be adequately compensated by paying more than one and half times their normal wages.
Employees categorised as exempt employees can be exempted from being paid overtime wages.. These employees include those who occupy managerial or executive positions, administrative positions, creative jobs, and professional positions.
Employees in the USA aren’t not covered by any state funded healthcare. Apart from Medicare for citizens above 65 years of age and Medicaid for low-salaried professionals , nobody receives state funded health benefits.
Employers have to provide health insurance plans for their employees or will be penalized by the Affordable Care Act. Particularly, employees with more than 50 full-time employees must offer health insurance for 95% of their employees.
Coverage and affordability of these employer-sponsored insurance must meet all local statutory requirements. Programs should also extend in coverage to include employee’s dependents.
Employees and employers take shared responsibility in obtaining and offering these benefits.
Smaller employers are not obligated to offer any benefits. However, in order to stay competitive in hiring talent, many employers offer insurance for their employees.
Here are some tips to plan leaves for your American employees.
There are 10 federal holidays in the U.S.:
- ~New Year’s Day
- ~Martin Luther King, Jr. Day
- ~Presidents’ Day
- ~Memorial Day
- ~Independence Day
- ~Labor Day
- ~Columbus Day (celebrated in some places as Indigenous Peoples’ Day)
- ~Veterans Day
- ~Thanksgiving Day
- ~Christmas Day
There is no minimum statutory requirement for leaves in the USA. The number of vacation leave offered to an employee is left at the discretion of the employer.
Here again, there is no minimum statutory requirement for sick leaves. Employees can take up to 12 weeks of sick leave on an unpaid basis.
The USA is one of the few countries in the world where employers need not offer paid maternity leave. However, employees are entitled for up to 12 weeks of unpaid maternity leave according to the FMLA.
Altogether, employers are not compelled by law to offer paid sick leaves or vacations. However, in order to remain competitive in attracting top talent many employers plan paid leave quotas for their employees.
Most employers and employees usually agree on an at-will basis which means that either party can terminate the service with or without notice. However, proper communication of the same is compulsory on both sides.
Terminating employees in the USA need not be a big deal. As your EOR in the USA, we will bear all legal responsibility for your employer. You can comfortably terminate an employee in case of unforeseen circumstances without following any processes - we would handle all the paperwork to ensure your employee is fairly terminated.
Get The Multiplier Advantage
With Multiplier's PEO/EOR solution, expanding into a new market is seamless and simple.
We can help you onboard your preferred candidate, handle HR issues and payroll, and ensure compliance with local laws. By partnering with our USA EOR, you avoid the hassle of setting up a foreign branch or subsidiary.
Once you have chosen your desired talent, start generating and customizing employment contracts for them in a few clicks and manage the workforce from a single platform. You can also pay thousands of employees in United States Dollars in a single click.
Hire and expand using the best SaaS-based USA PEO/EOR. Contact us to grow your business today.