Hiring guide in United States of America

What should I know about hiring in the USA?

When it comes to hiring in the USA, there are a few things that you should keep in mind. First and foremost, it is essential to remember that the USA has several employment laws you must be aware of. 

These laws vary from state to state, so it is vital to research before making decisions about hiring in the USA. These laws can impact everything from the minimum wage you are required to pay your employees to the amount of vacation time they are entitled to.

Additionally, the USA has a very competitive job market. This means that you will need to ensure that your company can offer competitive salaries and benefits to attract the best employees. 

Finally, it is essential to remember that the USA has several laws and regulations you must follow when hiring. These laws and regulations can be complex, so it is crucial to make sure that you have a good understanding of them before you begin the hiring process.

Why is the USA a good choice for finding remote employees?

There are plenty of reasons to hire remote employees in the United States. For one, the talent pool is deep. You can find workers with all kinds of skills and experience levels in every corner of the country.

Another reason is the time zone difference. If you have a business that’s based in the US but you want to reach a global market, hiring remote employees in different time zones can help you keep your business running 24/7.

And then there are the cost savings. Hiring remote employees can be a lot cheaper than hiring in-office staff, since you don’t have to worry about things like office space and benefits.

How can Native Teams help you hire in the USA

When it comes to hiring in the United States, there are many things that companies need to take into account. One of the most important things is making sure that they are able to find the best talent possible. This is where Native Teams can come in and help out! 

Our Employer of Record is a service that allows businesses to legally employ people in any country without the need to set up a wholly new legal entity and in full conformity with local employment laws. As an added bonus, we can ensure that your company’s hiring, payment, and other financial incentives for new employees are in line with all US laws and regulations.

 Hire your first USA employee with Native Teams.

Legal requirements for hiring in the USA

Minimum wage

Contributions & taxes

Employer tax

Employer costs are typically calculated at 11.2% of salary.

• 6.2% goes to Social Security;
• 1.45% goes to Medicare;
• 0.60% goes to Federal Unemployment;
• 2.7% goes to State Unemployment;
• 0.25% goes to Workers’ Compensation.

Employee tax

The Cost of Employees runs between 7.65% and 8.65%.

To calculate the salary and taxes in the USA please click here.

Payroll cycle

Pay periods might be weekly, bi-monthly (every two weeks), semimonthly (twice a month), or monthly.

Is there a 13th salary in the USA?

Currently, the United States does not require 13-month pay.

Labor rules

Probation period

Due to at-will employment, probationary periods are not mandated by law in the United States.

Notice period 

As a general rule, U.S. law does not mandate a minimum amount of notice before terminating an employee. Thus, the working relationship can be ended immediately by either party

Severance period

United States legislation does not provide for severance pay for terminated workers.

Working hours

The typical workweek consists of 40 hours, divided evenly across 8-hour days. Monday through Friday makes up the regular work week. The federal government’s Fair Labor Standards Act (FLSA) and some individual states’ laws specify situations in which overtime pay is required.

Leave and benefits

Public holidays

There are 9 official holidays in the USA:

1. New Year’s Day: January 1
2. Martin Luther King Jr. Day: Third Monday in January
3. President’s Day: Third Monday in February
4. Memorial Day: Last Monday in May
5. Independence Day: July 4
6. Labor Day: First Monday in September
7. Veteran’s Day: November 11
8. Thanksgiving Day: Fourth Thursday in November
9. Christmas Day: December 25

Sick leave

In the United States, employers are not required by law to provide paid sick leave. However, the Family and Medical Leave Act (FMLA) guarantees eligible workers up to 12 weeks of unpaid, job-protected leave per year.

Maternity leave & paternity leave

In the United States, employers are not obligated to cover the costs of parental leave. However, employers with 50 or more workers are required by the Family and Medical Leave Act to grant up to 12 weeks of leave to new mothers and adoptive mothers while also guaranteeing their jobs. 

Therefore, unless both parents work for the same company, the leave time for childcare purposes must be divided evenly between them, and both parents are entitled to the full 12 weeks. 

Other leave

Jury duty leave

Any worker in the United States called to serve on a jury must be granted unpaid leave. However, you may be obligated to compensate employees for time spent serving on jury duty in certain states and municipalities.

Parental leave

After the birth or adoption of a child, either or both parents are entitled to take time off to care for the new addition to their family. Each employee is eligible for 12 weeks of unpaid leave per year. Unless otherwise approved by your employer, your time off will need to be consecutive.

Military leave

The Uniformed Services Employment and Reemployment Rights Act protects employees in the armed forces. Employees called to active military duty are protected by laws that mandate their employers give them time off without pay and rehire them when they return from military service.

What are the minimum vacation days?

In the United States, vacation and holiday time off are not required by law and therefore are not compensated for by employers. However, in most companies, employees receive between 10 and 20 days of paid time off (PTO) annually for vacation, sick leave, or other purposes.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us, and we will send a comparison of insurance packages and prices*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in the USA, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in the USA?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.