Introduction
The United States remains one of the most influential markets globally, offering unparalleled scale, purchasing power, and a highly diversified economy. With its culture of innovation, deep capital markets, and a strong legal framework protecting businesses and intellectual property, the U.S. provides fertile ground for companies seeking growth. Its vast consumer base, combined with access to top talent and advanced infrastructure, makes it a strategic destination for international expansion.
EOR & PEO Solutions in United States
If you’re looking to hire employees in United States without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in United States acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.
This model allows you to expand into United States quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.
What Is an Employer of Record in United States?
An Employer of Record United States (also known as an EOR provider) enables businesses to hire and onboard United States employees without having to incorporate in-country. The EOR manages:
- Employment contracts in United States
- Monthly payroll and tax filings
- Statutory benefits in United States (like social insurance and leave)
- Ongoing HR and compliance responsibilities
What’s the Difference Between EOR and PEO?
A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in United States, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in United States but still want to hire full-time staff.
Whether you choose an EOR or PEO depends on your United States hiring strategy, budget, and long-term plans for the market.
Benefits of Using an EOR Service in United States
- Hire employees in United States faster, with no setup delays
- Stay compliant with American labor and tax laws
- Avoid the cost of forming and maintaining a local entity
- Access local expertise in employment law and payroll in United States
- Simplify HR management while maintaining control over your team
By using an EOR solution, companies can confidently build their team in United States, access top talent in United States, and stay focused on business growth — without getting tangled in bureaucracy.
Hiring in United States
United States is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in United States successfully, it’s important to understand your options especially when you don’t have a legal entity in United States.
That’s where using an Employer of Record in United States makes all the difference.
Your Hiring Options in United States
Businesses have two main paths to hire employees in United States:
- Register a local entity, manage payroll and HR directly, and take on full legal responsibility.
- Use an Employer of Record (EOR) a third-party EOR provider that acts as the legal employer in United States on your behalf.
The second option is faster, lower-risk, and ideal for companies that want to test the American market, launch quickly, or hire remote employees without permanent infrastructure.
Why Use an EOR to Hire in United States?
- Drafting and executing employment contracts in United States
- Managing United States payroll and mandatory contributions
- Handling employee benefits as required under American labor law
Employment in United States
Understanding how employment in United States works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow American labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.
That’s why many growing businesses choose to use an EOR in United States to handle these responsibilities with confidence.
Employment Contracts in United States
All employees in United States must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of United States, and are usually signed before or on the first day of work.
By working with a United States employer of record, you can ensure that all employment contracts in United States are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.
Payroll & Employer Contributions
Payroll in United States involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:
- Social Security
- Medicare
- Federal / State Unemployment Insurance
- State Disability Insurance
- Health Insurance
- Workers’ Comp
These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in United States handles this for you managing all payroll, tax filings, and reporting on your behalf.
Employee Benefits and Leave
American labor law mandates several employee benefits, including:
- Vacation, Sick Leave & PTO
- Maternity & Family Leave (FMLA)
- Paid Paid Holidays
- Health Insurance & Related Benefits
- Retirement Plans
- Workers’ Compensation & Insurance
- Short-Term Disability / Paid Family & Medical Leave (State-Level)
- Flexible Benefits & Wellness Programs
Using an employer of record service ensures your team in United States receives all required benefits and that your business remains fully compliant with American employment law.
Termination & Notice Periods
Ending an employment contract in the United States requires careful attention to federal and state employment laws, as well as company policies. While most employment is “at-will,” meaning either party may end the relationship without cause, employers must still comply with anti-discrimination laws, final paycheck requirements, and any contractual or collective bargaining obligations.
Partnering with an Employer of Record (EOR) ensures these processes are handled lawfully and consistently, reducing risk and safeguarding both the business and the employee experience.
Visas & Permits in United States
If you’re planning to hire employees in United States or bring in foreign talent, understanding United States’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in United States makes it much easier.
An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in United States with confidence.
Work Permits for Foreign Employees in United States
Foreign nationals who plan to work in the United States must obtain the appropriate work authorization, which typically comes in the form of an employment-based visa or permit. The process can be complex, involving strict eligibility criteria, employer sponsorship, and compliance with immigration regulations. An Employer of Record (EOR) helps streamline this journey by guiding employers through visa sponsorship requirements, ensuring compliance, and enabling foreign talent to work legally and effectively in the United States.
Types of Visas for Foreign Talent
There are several types of visas used to work or do business in United States, including:
- H-1B Visas
- L-1 Visas
- O-1 Visas
- E-1/E-2 Visas
- B-1 Visas
- TN Visas
- EB-1/EB-2/EB-3 Visas
Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in United States or send international staff temporarily, an EOR United States solution helps you identify the right visa and manage the application process end-to-end.
Business Permits for Foreign Companies
To operate directly in United States, foreign companies typically need to register a legal entity in United States and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with American labor laws.
Alternatively, you can use an EOR in United States to bypass the need for a local entity. The United States employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in United States.
Why Visas & Permits Matter for Global Hiring
If you’re hiring foreign employees in United States, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:
- Avoid visa delays or permit denials
- Ensure alignment with American employment law
- Quickly hire and onboard top talent without risk
- Operate legally, even without a registered entity in United States
Common Questions on EOR in United States
Yes, it is. The EOR model is a legal and common practice in the U.S., where the EOR acts as the legal employer, ensuring full compliance with federal, state, and local labor laws, including tax regulations. The EOR’s co-employment relationship with the client company is a well-established model.
An EOR in the U.S. offers a comprehensive range of services. This includes managing payroll, withholding and remitting federal and state income taxes, FICA (Social Security and Medicare), and unemployment taxes. They also handle workers' compensation, administer employee benefits, and ensure compliance with state-specific labor laws and regulations.
Onboarding an employee through an EOR is significantly faster than establishing a new legal entity. For U.S. citizens or permanent residents, the process can often be completed in as little as a few days to a week. For foreign nationals, the timeline is dependent on the processing time for their visa and work authorization.
Yes, one of the primary functions of an EOR is to handle all payroll tax administration. They are responsible for calculating and withholding federal income tax, state income tax (where applicable), FICA taxes, and unemployment taxes from the employee's paycheck and remitting them to the appropriate tax authorities, ensuring the company remains fully compliant.
A great EOR solution is flexible. When your business in Vietnam is ready to set up its own local entity, the EOR provider can support the employee transition process, including new contracts, benefits transfer, and legal filings — ensuring a smooth shift from EOR to direct employment.