Expand your business into the USA, without an entity
At Horizons, we provide a comprehensive and tailored set of outsourcing services specifically designed to help organizations expand and hire in the USA. Our USA PEO & Employer of Record, payroll, and additional services enable you to outsource all of the complex administration and legal compliance work so you can focus your efforts on a rapid and successful expansion.
Our dedicated in-house recruitment experts can also help you to source, recruit, and onboard new employees in the USA. Even if you don’t have a registered entity in the USA, you can use our local subsidiary as employer of record, providing all the benefits of hiring talent in the USA but without any of the associated legwork.
Together, our services can reduce your expansion costs by thousands of dollars while offering you a fast, flexible, low-risk, and scalable route into the US marketplace.
Our USA PEO simplifies your expansion
Horizons enables your business to expand its operations into the US, without setting up a legal subsidiary.
Employment & Labor Laws in the United States
📝 USA employment contracts
It is important for employers in the US to provide all employees with a written employment contract which includes all relevant details of the working relationship, such as sick leave, vacation leave, compensation, and so on. The contracts should be written in English and use the local currency of US dollars. Oral contracts can also technically be legally enforceable but can present issues in practice, so it is always best to use formal written contracts.
By partnering with our USA PEO & Employer of Record, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
⏰ Working hours in the USA
Normal working hours in the US are 40 hours per week and eight hours per day, although this does vary from role to role. When employees work over 40 hours, most are legally entitled to overtime pay at a rate of at least 150% of normal pay. Some employees are exempt from maximum working hours, and this exemption should always be written into their individual employment contract.
📅 Public holidays in the USA
In the US, employees are not legally entitled to any paid public holidays. However, most employers do offer some, with the following being the most common:
🏖 USA vacation leave
Employees in the US are not legally entitled to vacation leave as standard. Most employers do offer some paid leave allowance, but it varies massively from employer to employer and role to role and is still generally significantly lower than most other countries in the world.
Due to the dedicated working culture in the US, many employees do not take their full allowance even when offered it.
😷 USA sick leave
Employees in the US are not entitled to any paid sick leave as standard. However, the Family and Medical Leave Act (FMLA) does dictate that most employees are entitled to up to 12 weeks of unpaid sick leave every year. Additionally, most employers choose to offer a paid sick leave allowance for their employees as part of their benefits package. Also, some state-level regulation does entitle employers to paid sick leave, so it is important that you understand the local laws when employing in the US.
👶 Maternity and paternity leave in the USA
Unlike most countries, employees in the US are not entitled to paid parental leave as standard. However, some states do have regulations to provide paid parental leave, and many employers choose to offer it as part of their benefits packages. Also, the FMLA does provide 12 weeks of unpaid leave for all employees in the US.
💰 Employee severance and terminations in the USA
The US varies from most countries in its laws around terminations and severance rights. Most states adhere to the concept of ‘at-will employment’, meaning that employees can be terminated at any time and for almost any reason (besides things like race, gender, or religion). Employees are also allowed to leave for any reason and are not required to give notice.
Severance payments are not required, but some employers do offer them as part of their benefits packages. Some employees may be entitled to payment when they lose their jobs and it isn’t their fault. They also retain employer-linked health insurance for a time after losing their jobs.
By partnering with our USA PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
🏦 Taxation in the USA
Employers and employees in the US are required to pay towards different funds, with both needing to pay 6.2% of salary to social security tax and 1.45% to Medicare. Additionally, employers need to pay unemployment tax for every employee.
Employees in the US are taxed progressively, so pay more at higher levels of income. The rates range from 10% to 37%. Rates also vary depending on whether the payer is single, married, or head of a household. Employers do not need to withhold taxes, but some choose to.
Businesses are taxed on a federal level, but there are also varying rates imposed by different states, so you need to understand the specific laws in your location.
🏥 Health coverage in the USA
Employers are not legally required to offer private health insurance, but almost all do, and they may be penalized by the government for not doing so. The US does not have nationalized healthcare, so most employees rely on their employers for some or all of their health coverage, and it is an important element of most benefits packages.
💳 USA compensations & benefits
Compensation Laws in the USA
The minimum wage in the US is set at a federal level, but some states also have their own higher rate. The standard federal minimum is $7.25 per hour.
Benefit management in the USA
Benefits packages are particularly important in the US, with many employees relying on their packages to provide healthcare, sick leave, and more. This makes them a deciding factor for many when choosing their next role. But establishing a benefits system in the US as a foreign organization can be a difficult process with many different laws and administrative procedures potentially causing delays.
One effective solution is to outsource your USA benefits management to Horizons benefits specialists. Our team will ensure that your benefits system is set up quickly and compliantly, so you can focus on a rapid and successful expansion. Horizons USA PEO can provide expert guidance to help simplify the process of expanding into the United States.