Employer of Record (EOR) in the USA
Simplify your US expansion with Native Teams. Hire and manage employees in the USA without the costs and difficulties of establishing a legal entity. We handle every aspect of your operations in the USA so you can focus on growing your business.
How does an EOR in the USA work?
Traditionally, businesses must set up a legal entity to hire in the USA, which involves registering an address, opening a local bank account, and managing payroll, taxes, and benefits—an expensive and time-consuming process.
With Native Teams as your EOR provider, you can avoid these costs and hire in the USA without establishing a local entity. We act as the legal employer, ensuring full compliance with federal and state laws while handling payroll, tax management, and HR administration. Meanwhile, you retain complete control over your employees' daily tasks and responsibilities.
Who can use EOR services in the USA?
Native Teams’ EOR services are designed for businesses of all sizes looking to expand their presence in the USA. Whether you’re a startup, SME, or large enterprise, our solutions adapt to your specific needs.
Our EOR services are ideal for companies that want to expand into the USA without a local entity, businesses looking to hire remote employees in the USA, startups and SMEs seeking a cost-effective way to stay compliant, and enterprises looking to reduce overhead and compliance burdens while managing distributed teams with ease.
Features of Native Teams EOR services in the USA
Employment status
With our EOR service, your employees receive full local employment status under our legally registered US entity. This means they are hired on fully compliant contracts that align with federal and state labour laws.
HR administration and documentation
We manage all aspects of HR administration, including employment contracts, payroll and administrative tasks. Our comprehensive dashboard provides easy access to all employment records with just a few clicks, making document storage easier than ever.
Global payroll
The Native Teams platform provides payroll calculators tailored to 85+ countries, including the USA. Our system automatically calculates salaries, tax deductions, benefits, and other withholdings based on federal and state regulations. This allows you to forecast employment costs accurately and ensure compliance with payroll tax requirements.
Benefits
We ensure that your employees receive all mandatory employee benefits, such as healthcare, retirement contributions, etc, according to US employment laws. Additionally, we also offer optional perks like wellness programmes, gym memberships, and other customised benefits according to your preference to enhance employee satisfaction and retention.
Learn more about the labour laws and regulations of the USA with our detailed hiring guide
What legal requirements exist for employment in the USA?
Employment eligibility verification
All employers must verify that their employees are legally allowed to work in the USA. This is done by completing Form I-9, which requires employees to present valid identification and work authorisation documents.
Non-discrimination laws
Federal and state laws prohibit discrimination in hiring and employment based on race, colour, religion, sex, national origin, age, disability, and genetic information. Employers must ensure fair hiring practices, equal opportunities, and a non-discriminatory work environment.
Minimum wage compliance
Employers must adhere to minimum wage laws set by the federal government and individual states. The federal minimum wage applies to non-exempt employees, but some states and cities impose higher wage requirements.
Workers' compensation insurance
Employers must provide workers' compensation insurance to cover employees in case of job-related injuries or illnesses. This insurance covers medical expenses, lost wages, and rehabilitation costs. Requirements vary by state, so compliance with local laws is essential.
Social security & medicare taxes
Employers are required to withhold Social Security and Medicare taxes from employees' wages and contribute an equal amount. These contributions fund retirement benefits, disability insurance, and healthcare for eligible employees and retirees.
Federal & state income tax
Employers must deduct federal income tax from employees' wages and submit these payments to the Internal Revenue Service (IRS). Additionally, state and local income taxes may apply, depending on the employee’s work location. Employers must ensure proper tax calculations and timely remittances to avoid penalties.
Please note that all these requirements may vary depending on the job type, the employer and individual circumstances.
Why choose Native Teams as your USA Employer of Record?
Native Teams simplifies your hiring process while ensuring compliance with US employment regulations. With legal entities in 85+ countries, our EOR services provide flexible solutions tailored to businesses of all sizes.
From expert guidance on US labour laws and tax regulations to hassle-free payroll and HR administration, we offer a cost-effective alternative to entity setup, helping you grow your business in global markets without any added stress.
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party provider that legally employs your workers on your behalf. The EOR handles payroll, tax compliance, benefits, and HR tasks, allowing your business to operate in a foreign country without setting up a local entity.
What are the costs of using an Employer of Record in the USA?
The cost of EOR services in the USA varies based on factors like the number of employees and the scope of services required. To get a detailed breakdown, please visit our pricing page.
What is the difference between PEO and EOR?
An EOR or Employer of Record takes full legal responsibility for employment, including payroll, taxes, compliance, and benefits administration, without requiring the client to establish a local entity, while a PEO (Professional Employer Organisation) acts as a co-employer, sharing employment responsibilities with the client company. However, the client must have a legal entity in the hiring country.
What are the responsibilities of an Employer of Record (EOR)?
An Employer of Record (EOR) takes on the full legal responsibility of employing workers on your behalf. This includes drafting and managing employment contracts in compliance with local labour laws, ensuring proper worker classification, and adhering to employment standards.
EORs also handle payroll processing, including salary disbursement, tax withholdings, and compliance with federal, state, and local tax regulations. Additionally, they oversee employee benefits such as healthcare, retirement plans, and insurance coverage, ensuring that all mandatory and optional benefits align with legal requirements.
Is using an Employer of Record in the USA legal?
Yes, using an EOR in the USA is a completely legal and recognised method of hiring employees while ensuring compliance with local labour laws.
Why should I use EOR instead of opening my own company or an office in the USA?
Expanding into the USA by setting up a company takes time, money, and effort. You need to register a business, open bank accounts, manage taxes and comply with complex labour laws. An Employer of Record (EOR) offers a simpler, faster, and more cost-effective solution.
With an EOR, you can hire employees in the USA without setting up a local entity. We handle payroll, taxes, contracts, and legal compliance, so you don’t have to worry about paperwork or changing regulations. This saves you time and reduces costs while ensuring your employees are paid correctly and on time.
An EOR also gives you flexibility—you can hire, scale, or manage teams without long-term commitments. Whether you’re hiring one employee or building a larger team, Native Teams makes the process hassle-free.
How many people can I employ in the USA?
There is no specific limit. With Native Teams, you can hire as many employees as your business needs, ensuring compliance with local regulations.