Americas · USD

Hire in United States

United States of America — 335 million population, $76,330 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in United States.

Capital

Washington, D.C.

Currency

US Dollar (USD)

Languages

English, Spanish

Time zones

UTC-5 (ET), UTC-6 (CT), UTC-7 (MT), UTC-8 (PT)

Hiring overview

Typical time to hire
2-4 weeks for contractor, 4-8 weeks for full-time
Entity requirement
Required for direct employment; each state may require separate registrations (state tax, unemployment insurance, workers' comp)
EOR available
Yes — from $399/employee/month through a Corpshore entity
Contractor of record
Yes — from $39/worker/month

Employment law

Standard workweek
40 hours (no federal cap, but FLSA overtime threshold applies)
Maximum weekly hours
40 hours
Minimum annual leave
No federal minimum (typical employer offers 10-15 days PTO)
Public holidays
11 per year
Maternity leave
12 weeks unpaid (FMLA, employers with 50+ employees)
Paternity leave
12 weeks unpaid (FMLA, same eligibility as maternity)
Notice period
At-will employment: no statutory notice in most states
Severance
No statutory requirement (common practice: 1-2 weeks per year of service)
Probation
No statutory concept; at-will status serves a similar function
Overtime rules
1.5x hourly rate for non-exempt workers over 40 hours/week (FLSA)

Tax overview

Income tax range
10% to 37% federal, plus state taxes (0-13.3%)
Corporate tax
21% federal flat rate
Social contributions
FICA: 7.65% employee + 7.65% employer (Social Security 6.2% + Medicare 1.45%)
VAT / GST
No federal VAT/GST; state sales taxes range 0% to 7.25%
Tax year
Calendar year (Jan-Dec)
Treaty network
Over 60 income tax treaties in force

Compliance landscape

Worker classification
IRS 20-factor test and ABC test (varies by state). California's AB5 imposes the strictest contractor test. Misclassification penalties include back taxes, overtime, and benefits.
Data protection
No single federal privacy law. State-level: CCPA/CPRA (California), VCDPA (Virginia), CPA (Colorado), and more. Sectoral: HIPAA (health), FERPA (education), GLBA (finance).
Right to work
I-9 verification required within 3 days of hire. E-Verify mandatory for federal contractors; optional elsewhere (required in some states).
Non-compete
FTC proposed a near-total ban (contested in courts as of 2024). California, Minnesota, Oklahoma, and North Dakota ban most non-competes already.
Collective bargaining
NLRA protects right to organize. Union membership ~10% of workforce. Sector-specific: strong in public sector, construction, healthcare.

Payment rails

Bank transfer (ACH)
Stripe Connect
Wise

ACH direct deposit is the standard payroll method. Same-day ACH available for most banks. Stripe Connect offers instant payout to debit cards.

Key considerations for hiring

  • At-will employment in 49 states (Montana requires cause after probation)
  • Benefits expectations are high: health insurance, 401(k), PTO are standard in professional roles
  • Worker classification enforcement has intensified since 2020, especially in California, New York, and Illinois
  • State-by-state compliance complexity: employment law varies significantly across jurisdictions

Business and cultural context: United States

Business culture

Direct, results-oriented, informal communication. Performance-driven culture with emphasis on individual contribution. Email remains primary business communication.

Key industries

Technology
Finance
Healthcare
Manufacturing
Energy
Professional services

Talent pool strengths

Software engineering
Data science
Product management
Digital marketing
Finance and accounting

Historical context

The US at-will employment doctrine, established in the 1877 Payne v. Western & Atlantic Railroad ruling, makes it one of the few developed economies where employment can be terminated without cause. This shapes the entire contractor-vs-employee classification landscape.

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Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in United States for you.

Hire in United States — employment law, tax, compliance | Corpshore Work