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Hiring Employees in the US: A Comprehensive Guide
Hiring Employees in the US: A Comprehensive Guide
Emmett Arthur avatar
Written by Emmett Arthur
Updated over a week ago

Table of Contents

  1. Introduction

  2. Key Considerations for Employing in the US

  3. Benefits

  4. Employment Contracts

  5. Onboarding

  6. Leaves

  7. Payroll & Taxes

  8. Termination Process

  9. Invoice Schedule

  10. Get Started with Omnipresent


1. Introduction

Hiring employees in the United States can be simple and compliant with Omnipresent’s Employer of Record (EOR) service. We provide payroll, benefits, and HR support to ensure a seamless hiring experience.

This guide focuses on federal regulations. State-specific requirements may vary, particularly in states like California and New York, which have stricter employer regulations.


2. Key Considerations for Employing in the US

  • Currency: United States Dollar (USD, $)

  • Language: English

  • Employer Costs: Average (~12% of salary)

  • Termination Complexity: Simple (At-Will Employment)

  • Onboarding Timeline: Approximately 13 calendar days

  • Payroll Frequency: Semi-monthly (15th & last day of the month)


3. Benefits

Types of Benefits Offered

  • Mandatory Benefits: Public healthcare (Medicare, ACA-compliant health plans), social security, workers’ compensation.

  • Supplementary Benefits: Private healthcare, dental & vision insurance, life & disability insurance, 401K retirement plans, employee assistance programs.

Healthcare

  • Public healthcare is funded through employer and employee Medicare contributions.

  • Private healthcare is a standard employer-provided benefit.

Retirement

  • Social Security (OASDI program) is mandatory.

  • Employers typically offer 401K retirement plans, though employer contributions are not required.


4. Employment Contracts

Contract Types

  • Indefinite-term contracts (Salaried employees only)

  • Part-time contracts

  • Fixed-term contracts are not available due to at-will employment.

Requirements

  • Written employment agreements are standard but not legally required for at-will employees.

  • Language: English

  • Signature Requirements: Digital

  • Backdating: Not permitted under Omnipresent’s policy.

Probation Period

  • Not necessary due to at-will employment.

  • Probationary periods may conflict with at-will employment laws.

Contract Customisation

  • Optional clauses for customization, such as unlimited PTO or extra-legal sick days.

  • Certain contract elements (e.g., restrictive covenants, overtime pay) cannot be modified due to legal restrictions.


5. Onboarding

Timeline

The onboarding process in the US typically takes 13 calendar days, including:

  1. Platform Setup

  2. Right-to-Work Check

  3. Employment Contract Processing

  4. Benefits & Payroll Enrollment

Registration & Approvals

  • Employers must report new hires within a few days to state agencies.

Immigration & Visas

  • Omnipresent does not sponsor visas in the US.

  • Employees must hold valid work authorization (e.g., Green Card, TN Visa, EAD, H-1B, or other valid non-employer-dependent work visas).

Right-to-Work Verification

  • Employers and employees must complete Form I-9 as part of employment eligibility verification.

Employee Transfers from Another EOR

  • If an employee has worked under another EOR, their seniority can be recognized in the contract.


6. Leaves

Leave Entitlements

  • No federal law mandates paid vacation leave.

  • Employers may provide unlimited PTO or set custom leave policies.

Annual Leave Carryover

  • Max carryover: 240 hours, except in states where mandatory vacation payout is required.

Maternity, Paternity & Adoption Leave

  • No federally mandated paid parental leave.

  • The Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid leave for eligible employees.

  • Some states (e.g., California, New York) mandate paid leave.

Public Holidays (11 Federal Days)

  • New Year’s Day, Martin Luther King Jr. Day, Washington’s Birthday, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, Christmas Day.

Sick Leave

  • No federal requirement for paid sick leave.

  • Some states require mandatory paid sick leave policies.


7. Payroll & Taxes

Payroll Cycle

  • Frequency: Semi-monthly (15th & last day of the month)

  • Cut-off Date: 6th of each month (changes must be submitted by this date).

  • Payment Date: Last working day of the month.

Compensation

  • No mandatory extra payments (e.g., 13th-month salary).

  • Bonuses & commissions are allowed and taxed as salary.

  • Hourly Wage Employees: Omnipresent does not support hourly wages.

Standard Work Schedule

  • 40 hours per week, Monday-Friday.

  • Overtime pay applies only to non-exempt employees.

Employer Costs

  • Estimated 12% of salary. Use the OmniCalculator for a detailed breakdown.


8. Termination Process

At-Will Employment

  • Employers can terminate employees at any time, for any legal reason, with or without notice.

  • Exceptions:

    • Montana (requires valid cause post-probation).

    • Discrimination & retaliation claims.

Notice Period

  • No legally required notice period.

  • Mass layoffs require Worker Adjustment and Retraining Notification (WARN) Act compliance.

Severance Pay

  • No statutory right to severance.

  • Some employers provide severance based on company policies or contracts.


9. Invoice Schedule

Initial Fees

  • Setup Fees: Due upon signing Terms.

  • Deposit: Payable when the local employment contract is ready for signature.

  • First Salary Prepayment: Invoiced on the first day of employment.

Ongoing Monthly Payments

  • Labour costs invoiced monthly in arrears after final payroll calculations.

  • Each invoice includes:

    • Monthly service fee

    • Deposit insurance (if applicable)

    • FX fee (if applicable)


10. Get Started with Omnipresent

We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey towards hassle-free global employment.

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