United States of America

Occupying a huge swathe of the North American continent, the United States consists of fifty states and is widely recognized as the world’s largest economy and most powerful country.
Contractor Management
Payroll
Contractor of Record
Currency
United States dollar (USD)
Payroll Frequency
Varies by employer; common cycles include weekly, biweekly, semimonthly, and monthly
Employer Taxes
13.65%

Overview

Population
~ 332 million
Language
English
Capital
Washington DC
Currency
United States dollar (USD)
Country code
+1
Min wage
7.25 USD/hour federally
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
Avg employer tax

13.65%

Tax Breakdown

Federal Income Tax Brackets (2025):

On income up to $11,000 ($22,000 for married couples)
10%
On income over $11,000 ($22,000 for married couples)
12%
On income over $44,725 ($89,450 for married couples)
22%
On income over $95,375 ($190,750 for married couples)
24%
On income over $182,100 ($364,200 for married couples)
32%
On income over $231,250 ($462,500 for married couples)
35%
On income over $578,100 ($693,750 for married couples)
37%

Federal Unemployment Tax (FUTA):

Tax Rate
6.0% on the first $7,000 of each employee's wages
Credit Reduction
Employers may receive a 5.4% credit if they pay state unemployment taxes, reducing the effective rate to 0.6%

VAT

VAT

There is no federal VAT in the US.

Tax Calculation for United States
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Top Countries
Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in United States typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Internal Revenue Service (IRS) and obtain a Social Security Number (SSN)

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in United States
When drafting an employment contract for employees in United States, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Not federally required; varies by employer and state
Maternity leave
  • 12 weeks of unpaid leave under the Family and Medical Leave Act (FMLA) for eligible employees
Paternity leave
  • Not federally required; varies by employer

Parental Leave:

  • Unpaid leave under FMLA; some states and employers offer paid leave

Annual Leave
  • Not mandated by federal law; varies by employer
11 Public holidays in United States
1st
New Year's Day
17th
Martin Luther King Jr. Day
21st
President’s Day
30th
Memorial Day
20th
Juneteenth
4th
Independence Day
4th
Labor Day
10th
Columbus Day
11th
Veterans Day
24th
Thanksgiving
26th
Christmas Day
  • 1 Jan: New Year’s Day
  • 17 Jan: Martin Luther King Jr. Day
  • 21 Feb: President’s Day
  • 30 May: Memorial Day
  • 20 Jun: Juneteenth (in lieu)
  • 4 Jul: Independence Day
  • 4 Sep: Labor Day
  • 10 Oct: Columbus Day
  • 11 Nov: Veterans Day
  • 24 Nov: Thanksgiving
  • 26 Dec: Christmas Day (in lieu)

Termination Process

Notice Period

Generally "at-will" employment; either party can terminate without notice unless specified in a contract

Severance Pay

Not required by federal law; varies by employer

Final Paycheck

Must be provided promptly after termination; timing varies by state

Unemployment Benefits

Available to eligible workers; administered by states

Probation Period

  • Duration: Typically 90 days
  • Benefits: Employees may not be entitled to full benefits during this period
  • Termination: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in United States
with RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including United States.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Hiring in the United States | Payroll, Tax & Employment Guide

The US delivers diverse, highly skilled talent across all sectors within the world's largest economy, where at-will employment provides flexibility but state-specific rules shape compliance.

RemotePass simplifies hiring in the United States by managing compliance, payroll, contracts, and benefits across federal and state requirements so you can scale your team with confidence.

Key Takeaways for Hiring in the United States

  • The U.S. follows an at-will employment system, allowing termination with or without cause unless restricted by contract or law.
  • Payroll and employment compliance vary by state, even though federal laws set the baseline.
  • Private employers are not required to provide paid vacation, sick leave, or public holidays under federal law.
  • Employers must contribute to Social Security, Medicare, and unemployment insurance, while employees also fund part of Social Security and Medicare.

Quick Facts For Hiring In USA

Continent
North America
Capital
Washington, DC.
Currency
US Dollars (USD, $)
Language
English
Payroll Cycle
Bi-weekly
Pay Date
Every two weeks, on Fridays.

USA Employment Contract Overview

Below is the core structure we use when preparing compliant employment contracts for hires in the United States.

Contract Type
Open-ended
Local Language Required?
Yes
Bilingual?
Yes
Probation Period
There is no federal law that mandates a specific probation period for new employees. Probationary periods, if used, are set by the employer’s policies or employment contracts and can vary widely in length, commonly ranging up to 90 days.
Minimum Paid Time Off
Under U.S. federal law, private employers are not required to provide paid annual leave (vacation). Whether employees receive paid time off is determined entirely by the employer’s policy, employment contract, or a collective bargaining agreement.
There is no federal mandate to offer or pay out unused vacation time upon termination, although some states do require payout of accrued vacation. State laws may vary, but at the federal level, paid time off remains discretionary.
Public Holidays
The United States recognizes 11 federal public holidays under law (5 U.S.C. § 6103).
However, private employers are not required by federal law to observe these holidays or provide paid time off.
Whether employees receive time off or additional pay for working on a holiday depends on company policy, employment contracts, or applicable state laws, particularly in regulated industries or government-contracted work.
Notice Period
At the federal level, the U.S. follows an “at-will” employment doctrine, meaning employers can terminate employees at any time without advance notice or cause, except where prohibited by law or contract.
There is no mandatory notice period employers must give before ending employment, except in specific circumstances. Some states or contracts may require notice periods, but federally, no general employer notice period is mandated.
In practice, a standard notice period of around two weeks is common, with up to one month often observed for senior employees, where agreed by policy or contract.

What Do You Need To Include In A USA Employment Contract?

Must-have information in employment contracts:

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in the USA?

Payroll in the United States is shaped by federal labor laws, state-level variations, and a flexible pay structure, with clear rules around minimum wage, overtime, and payroll frequency.

Payroll Setup

Salary currency

US Dollars (USD, $)

Minimum Wage

The federal minimum wage is USD 7.25 per hour for covered, non-exempt employees

Hours per Week

There is no federal limit on total hours per week. Standard working hours are typically 40 hours per week and 8 hours per day, though this varies by role.

Non-exempt employees must receive overtime pay at a minimum of 1.5× the regular rate for hours worked over 40 in a workweek.

Payroll Frequency

Bi-weekly

Weekdays

Monday through Friday

Mandatory Bonuses

The Fair Labor Standards Act (FLSA) does not require employers to pay bonuses, such as holiday or performance bonuses, unless there is a prior agreement or contractual obligation.

Gross Salary Structure

Gross salary doesn’t follow a standardized structure in the United States.

What Payroll Taxes Do Employers Pay in USA?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Social Security (OASDI):

6.2 % on wages up to the wage base

Medicare:

1.45% on all wages

FUTA (for first $7,000)

0.6 % net (if state credit applies)

Long-term Care Insurance (Pflegeversicherung):

1.525% of gross salary, maximum income subject to this contribution is €58,050/year

State unemployment / state payroll taxes:

Varies by state.

What Payroll Taxes Do Employees Pay in USA?

Individual Income Tax

The U.S. uses a progressive federal income tax system with multiple marginal tax brackets, as published annually by the Internal Revenue Service (IRS).

For 2025, brackets vary by filing status (single, married filing jointly, head of household), with a top marginal rate of 37%. In addition to regular income tax, some high-income taxpayers may also be subject to the Alternative Minimum Tax (AMT).

Federal income tax is withheld at source by the employer.

Social Contributions


Total:

8.55%

Social Security (OASDI):

6.2% on wages up to the annual wage base

Medicare:

1.45% on all wages

Additional Medicare Tax:

0.9% on wages above the statutory threshold

State payroll taxes:

Vary by state and, in many cases, do not apply to employees

Hiring cost calculator 

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US
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Top Countries
Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Mandatory Employee Benefits in USA

Employment of expats is supported in this country.

Benefits Provider Funded Through Notes
Health Insurance Government

Payroll Contributions

Under U.S. federal law, Social Security (OASDI) and Medicare are mandatory payroll contributions for most employees and employers under the Federal Insurance Contributions Act (FICA).

Both parties contribute through payroll withholding.

These programs provide retirement, disability, survivor, and health insurance benefits and are not optional for eligible workers, except in limited cases such as certain nonresident aliens or employees covered by international totalization agreements.

Other Statutory Benefits Government

Payroll Contributions

Unemployment Insurance: Operates under a federal–state system.

Employers must pay federal unemployment tax (FUTA) and usually state unemployment taxes; employees generally do not contribute.

Workers’ Compensation: Not mandated at the federal level but required by state law in nearly all jurisdictions.

It provides wage replacement and medical benefits for employees who suffer work-related injuries or illnesses.

Leave And Holiday Entitlement In USA

Annual leave

Under U.S. federal law, private employers are not required to provide paid annual leave (vacation). Whether employees receive paid time off is entirely determined by the employer’s policy, the employment contract, or a collective bargaining agreement.

There is also no federal requirement to pay out unused vacation time upon termination. However, several states do mandate payout of accrued vacation, depending on state law and company policy.

Rules around holiday pay or time off may vary by state, but at the federal level, annual leave remains fully discretionary.

Public holidays

The United States recognizes 11 federal public holidays under federal law (5 U.S.C. § 6103). Private employers are not legally required to observe these holidays or provide paid time off.

Whether an employee receives the day off or premium pay for working on a holiday depends on company policy, employment contracts, or applicable state laws, particularly in regulated sectors.

The 11 federal public holidays are:

  • New Year’s Day – January 1

  • Martin Luther King Jr. Day – Third Monday in January

  • Washington’s Birthday (Presidents Day) – Third Monday in February

  • Memorial Day – Last Monday in May

  • Juneteenth National Independence Day – June 19

  • Independence Day – July 4

  • Labor Day – First Monday in September

  • Columbus Day – Second Monday in October

  • Veterans Day – November 11

  • Thanksgiving Day – Fourth Thursday in November

  • Christmas Day – December 25

  • Sick Leave

There is no federal mandate requiring private employers to provide paid sick leave.

However, under the Family and Medical Leave Act (FMLA), eligible employees of covered employers (those with 50 or more employees within a 75-mile radius) may take up to 12 weeks of unpaid, job-protected leave per year for serious health conditions affecting themselves or close family members.

In addition, many states and cities have enacted laws that require employers to offer a minimum amount of paid sick leave, which employers must comply with where applicable.

Maternity Leave

At the federal level, maternity leave is governed by the FMLA, which provides eligible employees with up to 12 weeks of unpaid, job-protected leave for the birth or adoption of a child or to care for a newborn.

There is no federal requirement for private employers to offer paid maternity leave. Some states operate paid family leave programs, funded through payroll taxes, that provide partial wage replacement during qualifying leave periods.

Paternity Leave

Paternity leave follows the same federal framework as maternity leave under the FMLA, granting eligible employees up to 12 weeks of unpaid, job-protected leave for the birth or adoption of a child.

As with maternity leave, there is no federal mandate for paid paternity leave. Paid benefits may apply in states that have implemented family leave insurance programs.

Other Types of Leave

Private employers may be subject to specific federal or state leave requirements, depending on the situation.

These may include leave for:

  • Jury duty

  • Educational Leave (Bildungsurlaub): In most federal states, employees may take up to five days per year of paid leave for professional development. Entitlement and duration vary by region.

  • Military service

  • Voting

Whether such leave is paid depends on federal or state law and employer policy.

Bereavement leave is not required under federal law, and availability depends entirely on employer policy.

Some states mandate bereavement leave or other specialized leave types, such as organ donation leave, but these requirements are not universal.

Termination and Offboarding in USA

Ending an employment relationship in the United States is largely shaped by the at-will employment doctrine, but employers still need to navigate federal, state, and contractual requirements carefully to remain compliant.

This section explains how termination, final pay, benefits, and documentation work when offboarding employees in the U.S.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

USA Employee Resignation

Notice

Form

U.S. federal law does not require a specific resignation format. Employees may resign verbally or in writing, though written notice is widely recommended for clarity and recordkeeping. Employers may also set internal policies that require written notice.

Notice period

Federal law does not require employees to give advance notice before resigning. In practice, notice periods are typically governed by employer policies or employment contracts, with two weeks being common but not mandatory

Payment in lieu of notice or notice waiver

Not applicable.

End-of-Service Benefits

Severance/Gratuity

U.S. federal law does not require employers to pay severance or gratuity upon resignation or termination unless an employment contract, company policy, or collective bargaining agreement specifically provides for it. In most cases, severance remains discretionary or contract-based.

Other Benefits

  • Depending on state law and employer policy, accrued but unused vacation or paid time off (PTO) may be payable upon resignation. While federal law does not mandate payout, many states require it if the employer has an established policy or practice of paying out unused vacation.

  • Eligible employees may also continue their group health insurance coverage through COBRA after separation, at their own cost.

Termination Documentation

  • Federal law generally does not require employers to issue termination letters or formal documentation upon resignation. However, many employers provide written confirmation for recordkeeping and to document the employment end date.

  • Certain federal laws do require benefit-related documentation, such as COBRA notices and final pay disclosures.

  • Employers must also comply with federal anti-discrimination laws and maintain records as required by agencies such as the EEOC.

Employer Termination With Cause in the United States

At the federal level, the U.S. operates under an at-will employment doctrine, allowing employers to terminate employees at any time and for any reason or no reason provided the termination does not violate employment contracts or applicable laws. Federal law does not impose a general notice requirement, though state laws or contracts may.

Acceptable grounds

    Termination with cause typically involves serious employee misconduct, violation of company policies, poor performance, dishonesty, insubordination, theft, harassment, or other significant breaches of duty. Employers generally do not need to prove cause in at-will employment unless a contract or collective bargaining agreement requires it.

Notice

Form

There is no federally mandated format for termination notice. Employers often provide written notice for clarity and legal documentation but may also communicate verbally. Mutual agreements typically require written documentation.

Notice period

No federal law requires employers to give advance notice for termination, whether with or without cause, except in specific situations governed by laws like the Worker Adjustment and Retraining Notification (WARN) Act. Notice periods may be set by contract or company policy. Mutual termination agreements often specify notice terms.

Payment in lieu of notice or notice waiver

Payment in lieu of notice is not required by federal law but may be offered voluntarily or stipulated in contracts or agreements. This applies to all termination types, though it is less common in termination with cause.

End-of-Service Benefits

Severance

There is no federal requirement to provide severance pay in any termination type unless stipulated by contract, company policy, or collective bargaining agreements. Severance is generally discretionary and often withheld in terminations for cause.

Other Benefits

Final wages for hours worked must be paid timely according to state laws. Payment of accrued vacation or PTO on termination depends on state law and employer policies. Health insurance continuation (COBRA) must be offered for eligible employees regardless of termination type, with the employee responsible for premiums.

Termination Documentation

  • Employers commonly provide written documentation of termination details, especially for with-cause terminations and mutual agreements, to protect against legal claims and ensure clarity.

  • Proper documentation supports compliance with federal laws, including anti-discrimination statutes, and is important for recordkeeping under agencies like the EEOC and Department of Labor.

  • Documentation typically includes reasons for termination (if applicable), final pay information, benefits continuation rights, and any agreements reached upon separation.

Employer Termination Without Cause in the United States

At the federal level, the U.S. operates under an at-will employment doctrine, allowing employers to terminate employees at any time and for any reason or no reason provided the termination does not violate employment contracts or applicable laws. Federal law does not impose a general notice requirement, though state laws or contracts may.

Acceptable grounds

Employers can terminate employees without cause under the at-will employment doctrine, meaning no specific reason or fault is needed, provided the termination does not violate anti-discrimination laws or other protections.

Notice

Form

There is no federally mandated format for termination notice. Employers often provide written notice for clarity and legal documentation but may also communicate verbally. Mutual agreements typically require written documentation.

Notice period

No federal law requires employers to give advance notice for termination, whether with or without cause, except in specific situations governed by laws like the Worker Adjustment and Retraining Notification (WARN) Act. Notice periods may be set by contract or company policy. Mutual termination agreements often specify notice terms.

Payment in lieu of notice or notice waiver

Payment in lieu of notice is not required by federal law but may be offered voluntarily or stipulated in contracts or agreements. This applies to all termination types, though it is less common in termination with cause.

End-of-Service Benefits

Severance

There is no federal requirement to provide severance pay in any termination type unless stipulated by contract, company policy, or collective bargaining agreements. Severance is generally discretionary and often withheld in terminations for cause.

Other Benefits

Final wages for hours worked must be paid timely according to state laws. Payment of accrued vacation or PTO on termination depends on state law and employer policies. Health insurance continuation (COBRA) must be offered for eligible employees regardless of termination type, with the employee responsible for premiums.

Termination Documentation

  • Employers commonly provide written documentation of termination details, especially for with-cause terminations and mutual agreements, to protect against legal claims and ensure clarity.

  • Proper documentation supports compliance with federal laws, including anti-discrimination statutes, and is important for recordkeeping under agencies like the EEOC and Department of Labor.

  • Documentation typically includes reasons for termination (if applicable), final pay information, benefits continuation rights, and any agreements reached upon separation.

Mutual Termination Agreements in the United States

At the federal level, the U.S. operates under an at-will employment doctrine, allowing employers to terminate employees at any time and for any reason or no reason provided the termination does not violate employment contracts or applicable laws. Federal law does not impose a general notice requirement, though state laws or contracts may.

Acceptable grounds

Both employer and employee agree to end the employment relationship, often with negotiated terms regarding notice, severance, and other conditions.

Notice

Form

There is no federally mandated format for termination notice. Employers often provide written notice for clarity and legal documentation but may also communicate verbally. Mutual agreements typically require written documentation.

Notice period

No federal law requires employers to give advance notice for termination, whether with or without cause, except in specific situations governed by laws like the Worker Adjustment and Retraining Notification (WARN) Act. Notice periods may be set by contract or company policy. Mutual termination agreements often specify notice terms.

Payment in lieu of notice or notice waiver

Payment in lieu of notice is not required by federal law but may be offered voluntarily or stipulated in contracts or agreements. This applies to all termination types, though it is less common in termination with cause.

End-of-Service Benefits

Severance

There is no federal requirement to provide severance pay in any termination type unless stipulated by contract, company policy, or collective bargaining agreements. Severance is generally discretionary and often withheld in terminations for cause.

Other Benefits

Final wages for hours worked must be paid timely according to state laws. Payment of accrued vacation or PTO on termination depends on state law and employer policies. Health insurance continuation (COBRA) must be offered for eligible employees regardless of termination type, with the employee responsible for premiums.

Termination Documentation

  • Employers commonly provide written documentation of termination details, especially for with-cause terminations and mutual agreements, to protect against legal claims and ensure clarity.

  • Proper documentation supports compliance with federal laws, including anti-discrimination statutes, and is important for recordkeeping under agencies like the EEOC and Department of Labor.

  • Documentation typically includes reasons for termination (if applicable), final pay information, benefits continuation rights, and any agreements reached upon separation.

Final Payment Timing & Immigration and Visa Compliance in the United States

Final Payment Deadline

Federal law does not set a specific deadline for final paycheck delivery, but all wages earned must be paid. Final pay timing is primarily governed by state law, which often requires payment on the last day of work or within a certain number of days (commonly between immediately and 72 hours). Employers must comply with the applicable state’s rules to avoid penalties.

Penalty

Failure to pay final wages on time can result in penalties under state law, including fines, waiting time penalties (daily damages until payment), and potential lawsuits. There is no uniform federal penalty for late payment, but noncompliance can lead to claims with state labor departments and legal action.

Visa and Immigration Compliance

U.S. employers must comply with federal immigration rules by verifying employment eligibility through Form I-9 for all employees. When employment ends, employers must update and retain I-9 records in accordance with USCIS requirements.

For employees on work visas (such as H-1B visas), termination can affect immigration status and the right to remain in the country. Employers should issue termination notices promptly and comply with all applicable reporting and recordkeeping obligations. Employers must also avoid discrimination based on immigration status.

Key Elements of an Employment Contract in United States
When drafting an employment contract for employees in United States, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Simplify U.S. hiring and payroll

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including United States.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in USA

Got Questions? Find Answers Here

What does "at-will employment" actually mean?

You can terminate employees at any time, for any reason or no reason, without advance notice or severance, as long as the termination doesn't violate anti-discrimination laws, contracts, or specific protections. Employees can also quit without notice. This is very different from most countries' employment systems and applies across the U.S. unless a contract or collective bargaining agreement says otherwise.

Private employers really don't have to provide paid vacation or sick leave?

Correct. Federal law doesn't require private employers to offer paid vacation, sick leave, or even paid public holidays. Whether you provide these benefits is entirely up to your company policy or employment contract. However, some states and cities mandate paid sick leave, and those requirements override the federal framework.

How do I know which state laws apply?

State laws apply based on where the employee works. Federal law sets the baseline, but states can add stricter requirements around final pay timing, paid leave, unemployment insurance, and other employment rules. If you're hiring across multiple states, you need to comply with each state's specific requirements.

Do I have to pay out unused vacation when someone leaves?

It depends on state law and your company policy. Federal law doesn't require payout of accrued vacation upon termination, but many states do mandate it if you have an established policy or practice of providing vacation. Check the specific state's rules where the employee works.

What's the final paycheck deadline?

There's no federal deadline. Each state sets its own rules, typically requiring payment on the last day of work or within 24-72 hours. Some states differentiate between resignation and termination. Missing the state deadline can result in fines, waiting time penalties (daily damages), and legal claims.

Why are employer costs listed as 8-25%?

Federal contributions are fixed: 6.2% Social Security (on wages up to the cap), 1.45% Medicare, and 0.6% FUTA. But state unemployment taxes and workers' compensation insurance vary significantly by state, industry, and claims history, pushing total costs anywhere from 8% to 25% or higher.

How does termination affect work visa status?

For employees on work visas like H-1B, termination can immediately affect their legal status and right to remain in the U.S. You must issue termination notices promptly and comply with reporting requirements. The employee may need to find new sponsorship, change visa status, or leave the country within their grace period.

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United States of America

Occupying a huge swathe of the North American continent, the United States consists of fifty states and is widely recognized as the world’s largest economy and most powerful country.
Contractor Management
Payroll
Contractor of Record
العملة
United States dollar (USD)
تردد الرواتب
Varies by employer; common cycles include weekly, biweekly, semimonthly, and monthly
ضرائب أصحاب العمل
13.65%

نظرة عامة

التركيبة السكانية
~ 332 million
اللغة
English
العاصمة
Washington DC
العملة
United States dollar (USD)
رمز الاتصال الدولي
+1
الحد الأدنى للأجور
7.25 USD/hour federally
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
متوسط ​​ضريبة صاحب العمل

13.65%

تحصيل الضرائب

Federal Income Tax Brackets (2025):

On income up to $11,000 ($22,000 for married couples)
10%
On income over $11,000 ($22,000 for married couples)
12%
On income over $44,725 ($89,450 for married couples)
22%
On income over $95,375 ($190,750 for married couples)
24%
On income over $182,100 ($364,200 for married couples)
32%
On income over $231,250 ($462,500 for married couples)
35%
On income over $578,100 ($693,750 for married couples)
37%

Federal Unemployment Tax (FUTA):

Tax Rate
6.0% on the first $7,000 of each employee's wages
Credit Reduction
Employers may receive a 5.4% credit if they pay state unemployment taxes, reducing the effective rate to 0.6%

ضريبة القيمة المضافة

ضريبة القيمة المضافة

There is no federal VAT in the US.

حساب الضريبة في United States of America
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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في United States of America عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Internal Revenue Service (IRS) and obtain a Social Security Number (SSN)

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في United States of America
عند إعداد عقد عمل للموظفين في United States of America يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Not federally required; varies by employer and state
إجازة الأمومة
  • 12 weeks of unpaid leave under the Family and Medical Leave Act (FMLA) for eligible employees
إجازة الأبوة
  • Not federally required; varies by employer

Parental Leave:

  • Unpaid leave under FMLA; some states and employers offer paid leave

الإجازة السنوية
  • Not mandated by federal law; varies by employer
11 عطلات رسمية في United States of America
1st
New Year's Day
17th
Martin Luther King Jr. Day
21st
President’s Day
30th
Memorial Day
20th
Juneteenth
4th
Independence Day
4th
Labor Day
10th
Columbus Day
11th
Veterans Day
24th
Thanksgiving
26th
Christmas Day
  • 1 Jan: New Year’s Day
  • 17 Jan: Martin Luther King Jr. Day
  • 21 Feb: President’s Day
  • 30 May: Memorial Day
  • 20 Jun: Juneteenth (in lieu)
  • 4 Jul: Independence Day
  • 4 Sep: Labor Day
  • 10 Oct: Columbus Day
  • 11 Nov: Veterans Day
  • 24 Nov: Thanksgiving
  • 26 Dec: Christmas Day (in lieu)

عملية إنهاء العقود

Notice Period

Generally "at-will" employment; either party can terminate without notice unless specified in a contract

Severance Pay

Not required by federal law; varies by employer

Final Paycheck

Must be provided promptly after termination; timing varies by state

Unemployment Benefits

Available to eligible workers; administered by states

Probation Period

  • Duration: Typically 90 days
  • Benefits: Employees may not be entitled to full benefits during this period
  • Termination: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في United States of America
مع ريموت باس

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك United States of America.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

Hiring in the United States | Payroll, Tax & Employment Guide

The US delivers diverse, highly skilled talent across all sectors within the world's largest economy, where at-will employment provides flexibility but state-specific rules shape compliance.

RemotePass simplifies hiring in the United States by managing compliance, payroll, contracts, and benefits across federal and state requirements so you can scale your team with confidence.

Key Takeaways for Hiring in the United States

  • The U.S. follows an at-will employment system, allowing termination with or without cause unless restricted by contract or law.
  • Payroll and employment compliance vary by state, even though federal laws set the baseline.
  • Private employers are not required to provide paid vacation, sick leave, or public holidays under federal law.
  • Employers must contribute to Social Security, Medicare, and unemployment insurance, while employees also fund part of Social Security and Medicare.

Quick Facts For Hiring In USA

Continent
North America
Capital
Washington, DC.
Currency
US Dollars (USD, $)
Language
English
Payroll Cycle
Bi-weekly
Pay Date
Every two weeks, on Fridays.

USA Employment Contract Overview

Below is the core structure we use when preparing compliant employment contracts for hires in the United States.

Contract Type
Open-ended
Local Language Required?
Yes
Bilingual?
Yes
Probation Period
There is no federal law that mandates a specific probation period for new employees. Probationary periods, if used, are set by the employer’s policies or employment contracts and can vary widely in length, commonly ranging up to 90 days.
Minimum Paid Time Off
Under U.S. federal law, private employers are not required to provide paid annual leave (vacation). Whether employees receive paid time off is determined entirely by the employer’s policy, employment contract, or a collective bargaining agreement.
There is no federal mandate to offer or pay out unused vacation time upon termination, although some states do require payout of accrued vacation. State laws may vary, but at the federal level, paid time off remains discretionary.
Public Holidays
The United States recognizes 11 federal public holidays under law (5 U.S.C. § 6103).
However, private employers are not required by federal law to observe these holidays or provide paid time off.
Whether employees receive time off or additional pay for working on a holiday depends on company policy, employment contracts, or applicable state laws, particularly in regulated industries or government-contracted work.
Notice Period
At the federal level, the U.S. follows an “at-will” employment doctrine, meaning employers can terminate employees at any time without advance notice or cause, except where prohibited by law or contract.
There is no mandatory notice period employers must give before ending employment, except in specific circumstances. Some states or contracts may require notice periods, but federally, no general employer notice period is mandated.
In practice, a standard notice period of around two weeks is common, with up to one month often observed for senior employees, where agreed by policy or contract.

What Do You Need To Include In A USA Employment Contract?

Must-have information in employment contracts:

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in the USA?

Payroll in the United States is shaped by federal labor laws, state-level variations, and a flexible pay structure, with clear rules around minimum wage, overtime, and payroll frequency.

Payroll Setup

Salary currency

US Dollars (USD, $)

Minimum Wage

The federal minimum wage is USD 7.25 per hour for covered, non-exempt employees

Hours per Week

There is no federal limit on total hours per week. Standard working hours are typically 40 hours per week and 8 hours per day, though this varies by role.

Non-exempt employees must receive overtime pay at a minimum of 1.5× the regular rate for hours worked over 40 in a workweek.

Payroll Frequency

Bi-weekly

Weekdays

Monday through Friday

Mandatory Bonuses

The Fair Labor Standards Act (FLSA) does not require employers to pay bonuses, such as holiday or performance bonuses, unless there is a prior agreement or contractual obligation.

Gross Salary Structure

Gross salary doesn’t follow a standardized structure in the United States.

What Payroll Taxes Do Employers Pay in USA?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Social Security (OASDI):

6.2 % on wages up to the wage base

Medicare:

1.45% on all wages

FUTA (for first $7,000)

0.6 % net (if state credit applies)

Long-term Care Insurance (Pflegeversicherung):

1.525% of gross salary, maximum income subject to this contribution is €58,050/year

State unemployment / state payroll taxes:

Varies by state.

What Payroll Taxes Do Employees Pay in USA?

Individual Income Tax

The U.S. uses a progressive federal income tax system with multiple marginal tax brackets, as published annually by the Internal Revenue Service (IRS).

For 2025, brackets vary by filing status (single, married filing jointly, head of household), with a top marginal rate of 37%. In addition to regular income tax, some high-income taxpayers may also be subject to the Alternative Minimum Tax (AMT).

Federal income tax is withheld at source by the employer.

Social Contributions


Total:

8.55%

Social Security (OASDI):

6.2% on wages up to the annual wage base

Medicare:

1.45% on all wages

Additional Medicare Tax:

0.9% on wages above the statutory threshold

State payroll taxes:

Vary by state and, in many cases, do not apply to employees

حاسبة تكلفة التوظيف

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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

Mandatory Employee Benefits in USA

Employment of expats is supported in this country.

Benefits Provider Funded Through Notes
Health Insurance Government

Payroll Contributions

Under U.S. federal law, Social Security (OASDI) and Medicare are mandatory payroll contributions for most employees and employers under the Federal Insurance Contributions Act (FICA).

Both parties contribute through payroll withholding.

These programs provide retirement, disability, survivor, and health insurance benefits and are not optional for eligible workers, except in limited cases such as certain nonresident aliens or employees covered by international totalization agreements.

Other Statutory Benefits Government

Payroll Contributions

Unemployment Insurance: Operates under a federal–state system.

Employers must pay federal unemployment tax (FUTA) and usually state unemployment taxes; employees generally do not contribute.

Workers’ Compensation: Not mandated at the federal level but required by state law in nearly all jurisdictions.

It provides wage replacement and medical benefits for employees who suffer work-related injuries or illnesses.

Leave And Holiday Entitlement In USA

Annual leave

Under U.S. federal law, private employers are not required to provide paid annual leave (vacation). Whether employees receive paid time off is entirely determined by the employer’s policy, the employment contract, or a collective bargaining agreement.

There is also no federal requirement to pay out unused vacation time upon termination. However, several states do mandate payout of accrued vacation, depending on state law and company policy.

Rules around holiday pay or time off may vary by state, but at the federal level, annual leave remains fully discretionary.

Public holidays

The United States recognizes 11 federal public holidays under federal law (5 U.S.C. § 6103). Private employers are not legally required to observe these holidays or provide paid time off.

Whether an employee receives the day off or premium pay for working on a holiday depends on company policy, employment contracts, or applicable state laws, particularly in regulated sectors.

The 11 federal public holidays are:

  • New Year’s Day – January 1

  • Martin Luther King Jr. Day – Third Monday in January

  • Washington’s Birthday (Presidents Day) – Third Monday in February

  • Memorial Day – Last Monday in May

  • Juneteenth National Independence Day – June 19

  • Independence Day – July 4

  • Labor Day – First Monday in September

  • Columbus Day – Second Monday in October

  • Veterans Day – November 11

  • Thanksgiving Day – Fourth Thursday in November

  • Christmas Day – December 25

  • Sick Leave

There is no federal mandate requiring private employers to provide paid sick leave.

However, under the Family and Medical Leave Act (FMLA), eligible employees of covered employers (those with 50 or more employees within a 75-mile radius) may take up to 12 weeks of unpaid, job-protected leave per year for serious health conditions affecting themselves or close family members.

In addition, many states and cities have enacted laws that require employers to offer a minimum amount of paid sick leave, which employers must comply with where applicable.

Maternity Leave

At the federal level, maternity leave is governed by the FMLA, which provides eligible employees with up to 12 weeks of unpaid, job-protected leave for the birth or adoption of a child or to care for a newborn.

There is no federal requirement for private employers to offer paid maternity leave. Some states operate paid family leave programs, funded through payroll taxes, that provide partial wage replacement during qualifying leave periods.

Paternity Leave

Paternity leave follows the same federal framework as maternity leave under the FMLA, granting eligible employees up to 12 weeks of unpaid, job-protected leave for the birth or adoption of a child.

As with maternity leave, there is no federal mandate for paid paternity leave. Paid benefits may apply in states that have implemented family leave insurance programs.

Other Types of Leave

Private employers may be subject to specific federal or state leave requirements, depending on the situation.

These may include leave for:

  • Jury duty

  • Educational Leave (Bildungsurlaub): In most federal states, employees may take up to five days per year of paid leave for professional development. Entitlement and duration vary by region.

  • Military service

  • Voting

Whether such leave is paid depends on federal or state law and employer policy.

Bereavement leave is not required under federal law, and availability depends entirely on employer policy.

Some states mandate bereavement leave or other specialized leave types, such as organ donation leave, but these requirements are not universal.

Termination and Offboarding in USA

Ending an employment relationship in the United States is largely shaped by the at-will employment doctrine, but employers still need to navigate federal, state, and contractual requirements carefully to remain compliant.

This section explains how termination, final pay, benefits, and documentation work when offboarding employees in the U.S.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

USA Employee Resignation

Notice

Form

U.S. federal law does not require a specific resignation format. Employees may resign verbally or in writing, though written notice is widely recommended for clarity and recordkeeping. Employers may also set internal policies that require written notice.

Notice period

Federal law does not require employees to give advance notice before resigning. In practice, notice periods are typically governed by employer policies or employment contracts, with two weeks being common but not mandatory

Payment in lieu of notice or notice waiver

Not applicable.

End-of-Service Benefits

Severance/Gratuity

U.S. federal law does not require employers to pay severance or gratuity upon resignation or termination unless an employment contract, company policy, or collective bargaining agreement specifically provides for it. In most cases, severance remains discretionary or contract-based.

Other Benefits

  • Depending on state law and employer policy, accrued but unused vacation or paid time off (PTO) may be payable upon resignation. While federal law does not mandate payout, many states require it if the employer has an established policy or practice of paying out unused vacation.

  • Eligible employees may also continue their group health insurance coverage through COBRA after separation, at their own cost.

Termination Documentation

  • Federal law generally does not require employers to issue termination letters or formal documentation upon resignation. However, many employers provide written confirmation for recordkeeping and to document the employment end date.

  • Certain federal laws do require benefit-related documentation, such as COBRA notices and final pay disclosures.

  • Employers must also comply with federal anti-discrimination laws and maintain records as required by agencies such as the EEOC.

Employer Termination With Cause in the United States

At the federal level, the U.S. operates under an at-will employment doctrine, allowing employers to terminate employees at any time and for any reason or no reason provided the termination does not violate employment contracts or applicable laws. Federal law does not impose a general notice requirement, though state laws or contracts may.

Acceptable grounds

    Termination with cause typically involves serious employee misconduct, violation of company policies, poor performance, dishonesty, insubordination, theft, harassment, or other significant breaches of duty. Employers generally do not need to prove cause in at-will employment unless a contract or collective bargaining agreement requires it.

Notice

Form

There is no federally mandated format for termination notice. Employers often provide written notice for clarity and legal documentation but may also communicate verbally. Mutual agreements typically require written documentation.

Notice period

No federal law requires employers to give advance notice for termination, whether with or without cause, except in specific situations governed by laws like the Worker Adjustment and Retraining Notification (WARN) Act. Notice periods may be set by contract or company policy. Mutual termination agreements often specify notice terms.

Payment in lieu of notice or notice waiver

Payment in lieu of notice is not required by federal law but may be offered voluntarily or stipulated in contracts or agreements. This applies to all termination types, though it is less common in termination with cause.

End-of-Service Benefits

Severance

There is no federal requirement to provide severance pay in any termination type unless stipulated by contract, company policy, or collective bargaining agreements. Severance is generally discretionary and often withheld in terminations for cause.

Other Benefits

Final wages for hours worked must be paid timely according to state laws. Payment of accrued vacation or PTO on termination depends on state law and employer policies. Health insurance continuation (COBRA) must be offered for eligible employees regardless of termination type, with the employee responsible for premiums.

Termination Documentation

  • Employers commonly provide written documentation of termination details, especially for with-cause terminations and mutual agreements, to protect against legal claims and ensure clarity.

  • Proper documentation supports compliance with federal laws, including anti-discrimination statutes, and is important for recordkeeping under agencies like the EEOC and Department of Labor.

  • Documentation typically includes reasons for termination (if applicable), final pay information, benefits continuation rights, and any agreements reached upon separation.

Employer Termination Without Cause in the United States

At the federal level, the U.S. operates under an at-will employment doctrine, allowing employers to terminate employees at any time and for any reason or no reason provided the termination does not violate employment contracts or applicable laws. Federal law does not impose a general notice requirement, though state laws or contracts may.

Acceptable grounds

Employers can terminate employees without cause under the at-will employment doctrine, meaning no specific reason or fault is needed, provided the termination does not violate anti-discrimination laws or other protections.

Notice

Form

There is no federally mandated format for termination notice. Employers often provide written notice for clarity and legal documentation but may also communicate verbally. Mutual agreements typically require written documentation.

Notice period

No federal law requires employers to give advance notice for termination, whether with or without cause, except in specific situations governed by laws like the Worker Adjustment and Retraining Notification (WARN) Act. Notice periods may be set by contract or company policy. Mutual termination agreements often specify notice terms.

Payment in lieu of notice or notice waiver

Payment in lieu of notice is not required by federal law but may be offered voluntarily or stipulated in contracts or agreements. This applies to all termination types, though it is less common in termination with cause.

End-of-Service Benefits

Severance

There is no federal requirement to provide severance pay in any termination type unless stipulated by contract, company policy, or collective bargaining agreements. Severance is generally discretionary and often withheld in terminations for cause.

Other Benefits

Final wages for hours worked must be paid timely according to state laws. Payment of accrued vacation or PTO on termination depends on state law and employer policies. Health insurance continuation (COBRA) must be offered for eligible employees regardless of termination type, with the employee responsible for premiums.

Termination Documentation

  • Employers commonly provide written documentation of termination details, especially for with-cause terminations and mutual agreements, to protect against legal claims and ensure clarity.

  • Proper documentation supports compliance with federal laws, including anti-discrimination statutes, and is important for recordkeeping under agencies like the EEOC and Department of Labor.

  • Documentation typically includes reasons for termination (if applicable), final pay information, benefits continuation rights, and any agreements reached upon separation.

Mutual Termination Agreements in the United States

At the federal level, the U.S. operates under an at-will employment doctrine, allowing employers to terminate employees at any time and for any reason or no reason provided the termination does not violate employment contracts or applicable laws. Federal law does not impose a general notice requirement, though state laws or contracts may.

Acceptable grounds

Both employer and employee agree to end the employment relationship, often with negotiated terms regarding notice, severance, and other conditions.

Notice

Form

There is no federally mandated format for termination notice. Employers often provide written notice for clarity and legal documentation but may also communicate verbally. Mutual agreements typically require written documentation.

Notice period

No federal law requires employers to give advance notice for termination, whether with or without cause, except in specific situations governed by laws like the Worker Adjustment and Retraining Notification (WARN) Act. Notice periods may be set by contract or company policy. Mutual termination agreements often specify notice terms.

Payment in lieu of notice or notice waiver

Payment in lieu of notice is not required by federal law but may be offered voluntarily or stipulated in contracts or agreements. This applies to all termination types, though it is less common in termination with cause.

End-of-Service Benefits

Severance

There is no federal requirement to provide severance pay in any termination type unless stipulated by contract, company policy, or collective bargaining agreements. Severance is generally discretionary and often withheld in terminations for cause.

Other Benefits

Final wages for hours worked must be paid timely according to state laws. Payment of accrued vacation or PTO on termination depends on state law and employer policies. Health insurance continuation (COBRA) must be offered for eligible employees regardless of termination type, with the employee responsible for premiums.

Termination Documentation

  • Employers commonly provide written documentation of termination details, especially for with-cause terminations and mutual agreements, to protect against legal claims and ensure clarity.

  • Proper documentation supports compliance with federal laws, including anti-discrimination statutes, and is important for recordkeeping under agencies like the EEOC and Department of Labor.

  • Documentation typically includes reasons for termination (if applicable), final pay information, benefits continuation rights, and any agreements reached upon separation.

Final Payment Timing & Immigration and Visa Compliance in the United States

Final Payment Deadline

Federal law does not set a specific deadline for final paycheck delivery, but all wages earned must be paid. Final pay timing is primarily governed by state law, which often requires payment on the last day of work or within a certain number of days (commonly between immediately and 72 hours). Employers must comply with the applicable state’s rules to avoid penalties.

Penalty

Failure to pay final wages on time can result in penalties under state law, including fines, waiting time penalties (daily damages until payment), and potential lawsuits. There is no uniform federal penalty for late payment, but noncompliance can lead to claims with state labor departments and legal action.

Visa and Immigration Compliance

U.S. employers must comply with federal immigration rules by verifying employment eligibility through Form I-9 for all employees. When employment ends, employers must update and retain I-9 records in accordance with USCIS requirements.

For employees on work visas (such as H-1B visas), termination can affect immigration status and the right to remain in the country. Employers should issue termination notices promptly and comply with all applicable reporting and recordkeeping obligations. Employers must also avoid discrimination based on immigration status.

Key Elements of an Employment Contract in United States
When drafting an employment contract for employees in United States, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Simplify U.S. hiring and payroll

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including United States.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in USA

Got Questions? Find Answers Here

What does "at-will employment" actually mean?

You can terminate employees at any time, for any reason or no reason, without advance notice or severance, as long as the termination doesn't violate anti-discrimination laws, contracts, or specific protections. Employees can also quit without notice. This is very different from most countries' employment systems and applies across the U.S. unless a contract or collective bargaining agreement says otherwise.

Private employers really don't have to provide paid vacation or sick leave?

Correct. Federal law doesn't require private employers to offer paid vacation, sick leave, or even paid public holidays. Whether you provide these benefits is entirely up to your company policy or employment contract. However, some states and cities mandate paid sick leave, and those requirements override the federal framework.

How do I know which state laws apply?

State laws apply based on where the employee works. Federal law sets the baseline, but states can add stricter requirements around final pay timing, paid leave, unemployment insurance, and other employment rules. If you're hiring across multiple states, you need to comply with each state's specific requirements.

Do I have to pay out unused vacation when someone leaves?

It depends on state law and your company policy. Federal law doesn't require payout of accrued vacation upon termination, but many states do mandate it if you have an established policy or practice of providing vacation. Check the specific state's rules where the employee works.

What's the final paycheck deadline?

There's no federal deadline. Each state sets its own rules, typically requiring payment on the last day of work or within 24-72 hours. Some states differentiate between resignation and termination. Missing the state deadline can result in fines, waiting time penalties (daily damages), and legal claims.

Why are employer costs listed as 8-25%?

Federal contributions are fixed: 6.2% Social Security (on wages up to the cap), 1.45% Medicare, and 0.6% FUTA. But state unemployment taxes and workers' compensation insurance vary significantly by state, industry, and claims history, pushing total costs anywhere from 8% to 25% or higher.

How does termination affect work visa status?

For employees on work visas like H-1B, termination can immediately affect their legal status and right to remain in the U.S. You must issue termination notices promptly and comply with reporting requirements. The employee may need to find new sponsorship, change visa status, or leave the country within their grace period.

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