How much does it cost to employ a worker in the USA?

You will need to pay your US employee a salary, and then factor in an additional cost of approximately 20% on top of the worker’s salary. This 20% is necessary to cover health insurance, other benefits and taxation.

The amount it will cost to employ a US worker largely depends on the salary you want to offer. However, you can factor in an additional cost of approximately 20% on top of your worker’s salary. This 20% is necessary to cover taxes and benefits. In the US, employers are expected to:

  • provide or assist with health insurance and company benefits
  • be responsible for state, local and federal employment taxes – this includes Medicare, FICA (the Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and the SUI (State Unemployed Insurance)

If this sounds very complicated, there’s no need to be dissuaded from having US employees on the ground in America: for a monthly fee, Foothold America can provide and manage all payroll, HR and other services, including benefits administration.

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