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Employer of Record Service. US Hiring Made Simple.

Build a compliant presence in the USA and hire top talent by using Foothold America’s globally-trusted Employer of Record Service.

No US entity required.

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What is an Employer of Record Service (EOR)?

US Employer of Record Service, also known as EMS, offers a turn-key, cost-effective solution for your company to have a legitimate US presence with employees anywhere in the country in as little as one week without the cost and complexity of setting up a US entity. Foothold America hires, as the employer of record, the employees who represent you, so you have personnel dedicated to you to unlock your US expansion. Partner with Foothold America – a globally trusted US expansion expert that is more advanced than any other Employer of Record (EoR) service and Professional Employer Organisation (PEO). If you’d like more information on what an Employer of Record service is and how it works, please click here.

OUR EMPLOYER OF RECORD USA SERVICE

We remove complexity,
not control

Fast onboarding process, hassle free

Establishing a US entity can take months to complete. As the employer of record (EOR), we hire the employees who represent your company entirely, and you direct personnel activities.

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Ensure a compliant US workplace

The US can seem like 50 countries in one – each with its own rules on hiring, termination, labour laws and structuring compensation packages. As local experts, we will reduce your compliance risks and help you stay within the rules by being your extended HR team.

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Avoid costly mistakes

As an employer of record (EOR), we take on the burden, risk and legal responsibility of employing your US workforce. Our in-house experts shield your business from the risk of missing ever-changing regulations.

US employment law guidance

We offer direct access to in-country employment law guidance for those challenging employment situations.

Attractive employee benefits

We provide a comprehensive suite of the benefits US employees expect in accordance with all local laws and requirements.

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Remain flexible

Boundaries shouldn’t get in the way of your business. With our EoR service, you can enter and exit the United States market as you wish without a long-term commitment.

US EMPLOYER OF RECORD SERVICE

Is the Employer of Record Service right for your company?

You do not want a long-term contractual commitment. You want to test the waters so you can withdraw from the US market if needed.

You have recruited an employee who needs to start ASAP, and you do not have a US entity.

You are thinking of hiring at least one staff member in the US quickly, but you don't know where to start.

You want to focus on your business without worrying about administrative tasks and bureaucracy.

You already have a US employee in mind, but you need help hiring, including background check, legal work status, payroll management and medical benefits.

You want to be confident you are following US laws and avoiding penalties.

CLIENT TESTIMONIALS

Find out what EMS clients have to say about Foothold America

Read More
Foothold was able to get things done for us very quickly. They made life easier for us and worked with us to make sure staff were looked after and that we were able to get up and running.
Operation Manager, Network Security Company
Read More
Foothold America was instrumental in helping my UK company employ field applications sales people in the US without having to set up a US subsidiary, which is the usual route for foreign companies. Foothold America facilitated this by employing the people we had chosen and handling all the employment, terms, salaries, visa, taxes, social costs etc. They then billed us monthly for these costs plus a reasonable service charge. As a result, we were able get going very quickly with our own people in the USA and at a much lower cost base.
Managing Director, UK Biotech Company
Read More
We needed to access the US market to maximize our potential for growth. We selected our employee and Foothold America managed the payroll, taxes, benefits and other employee logistics, enabling us to avoid dealing with the bureaucratic maze of employing someone in the US.
CEO, Belgium Manufacturing Company

Hire the best talent quickly, compliantly and hassle-free.

EMPLOYER OF RECORD USA - STEP BY STEP

How our Employer of Record USA (EMS) service works

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Identify the opportunity

America is a vast country with great variety across its 50 states. We can help you determine where you can secure qualified talent. Once we understand your needs, your expansion advisor prepares an Employee Budget Projection which gives you visibility of the full costs of hiring and managing a US employee. We are here to guide your decision making.

Identify the candidate

If you already have an employee in mind, that is great! If you don’t, Foothold America works with you, your recruiter or our network in the recruitment of the best candidate for the position – and together, we develop a competitive compensation and benefits package which attracts and retains quality candidates.

Make the offer

Once you select the candidate, Foothold America works with you to develop the offer letter ( similar to an employment contract) and extend it to them. Once the offer is signed, the employee can begin in as little as one week. As the employer of record (eor), our team ensures the employee’s right to work in the US, conducts background checks, submits income tax and employer tax deductions, and guides the employee through the online employee portal to enroll in benefits.

Manage the US employee

We manage payroll processing, social contributions, expenses, holidays, workers’ compensation and more whilst you drive the day-to-day activities of your assigned personnel. We are with you every step of the way and ensure continued compliance.

US hiring cost with and without Foothold America

Businesses around the world partner with Foothold America and save thousands of dollars on their US hiring cost. With our advanced US Employer of Record Service, you can expand your business to the USA quickly, compliantly, and cost-effectively.

Expand with others

$900 – $1,500

Per employee per month for comparable service

Expand with Foothold America

$650 – $1,000

Per employee per month

How to Hire in the USA with an EOR Service [eBook]

Are you planning to hire in the USA but feeling overwhelmed by the complexities of US employment law and regulations? Look no further! We have the perfect solution to simplify this process for you. Introducing our new ebook: ‘How to Hire in the USA with an EOR Service’.

Hire with an EOR

Quick HR guide to hiring employees in the USA

Taxes & Wages

Employee Benefits

Leave Policies

Terminations

Vacations &
Paid Time Off

Employer Tax Liabilities

On average, the employer cost is estimated at 15% of the employee’s salary, without including the benefits costs. 

Employer Tax LiabilityAverage Tax Rate (%)
Federal Insurance Contribution Act (FICA)6.2%, up to $147,000 annual salary
Medicare portion of FICA1.45% of all salary, with an additional tax of 0.90% for salary over $200,000
Federal Unemployment Tax Act (FUTA) 0.60%  of salary up to first $7,000 of wages
State Unemployment Insurance (SUI)varies by state, an estimate of 5% of the first $10,000 of salary
Workers’ Compensationvaries by state, with an estimate of $1.00 per $100 of wage

Payroll & Pay Periods

The bi-weekly payroll schedule is the most common in the United States of America. This means that the employee’s wages are sent every two weeks.

Apart from the bi-weekly payroll schedule, the US has two other pay period options available: semi-monthly and monthly. However, some states prohibit the monthly pay period. 

Health Insurance

Unlike other developed nations, the US doesn’t have a national health service for all citizens. The health insurance industry is privately run, and since the 1940s, most Americans have received coverage through their employers. While there is no federal requirement for most businesses to offer health insurance, the reality is that US workers expect it to be available. On average, employers contribute $15,000 per employee per year to healthcare insurance coverage – for some industries, the contribution can top $25,000 per employee per year. Due to the high cost of coverage, employees also contribute to insurance premiums from their pay, ranging from $15,000 to $25,000 per year. No wonder employees want a lot of details about this benefit before accepting a job.

401(k) Retirement Plan

The most common employee retirement plan is referred to as a 401(k), named after the section of the IRS Internal Revenue Code in which it is found. Employers are not required to offer retirement benefits. However, much like health insurance, employees expect it. On average, employers contribute 4% of employee salary up to IRS limits. Interestingly, given the popularity of this benefit, only about 65% of workers who are offered a 401(k) plan contribute. Participation tends to increase with income, age, tenure, and education.

Comprehensive Benefits Package

Often workers judge employers by how comprehensive and generous their overall benefits plan is. It’s seen as a sign of a stable company and impacts an employer’s ability to attract and retain employees. The most common benefits include dental insurance, vision insurance, short-term & long-term disability insurance, Flexible Spending Accounts (FSA), and flexible hours. For those going the extra mile, benefits may include a four-day workweek, student loan assistance, tuition reimbursement, commuting/travel assistance, car allowance, and gym/wellness benefits.

Parental Leave

There is no obligation for US employers to give paid parental leave to their workers. Instead, parental leave is a matter left to each employer to decide upon. It’s treated as an additional form of benefit, so the duration and conditions of parental leave vary from business to business and state to state.

However, the Family Medical Leave Act
(FMLA) requires that US employers (with 50 or more employees) allow eligible employees to take unpaid time off (up to 12 weeks) for the birth and care of the newborn child or for the placement with the employee of a child for adoption or foster care. To be eligible, the employee must have worked at least 1250 hours for their employer over the past 12 months.

During an employee’s parental leave, the employer must hold the worker’s job and health insurance in place. There is no requirement to provide payment.

However, some US states do offer family paid leave, which can be used by any new parent. The states that offer this are California, Connecticut, the District of Columbia, Massachusetts, New Jersey, New York, Oregon, and Rhode Island.

Sick Leave

There are no federal requirements for businesses to offer paid sick leave to their employees in the US, though many states have their own laws requiring paid sick leave, such as California.

Based on the Family and Medical Leave Act (FMLA), employees can take sick days to care for a spouse, child, or parent with a serious health condition or when an employee is unable to work because of their serious health condition.

Termination Requirements

Every Federal, State, and City ordinance must be followed by employers when dismissing an employee. Termination costs might include Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), which is a federal law that allows employees to continue health insurance whilst unemployed.

At-will employment

Most US employees work under an at-will arrangement. This means that the employer or employee is free to terminate employment at any time without notice, for any reason, as long as the termination is not discriminatory or for another illegal reason. To learn more about at-will employment, read our blog post on how to compliantly terminate an at-will employee.

Severance for Employees

According to the U.S. Department of Labor, severance pay is often granted to employees upon termination of employment. This is based on the length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for employers to offer severance pay and it is dependent on whether an agreement has been made between the employer and the employee.

Paid Time Off

US workers are not legally entitled to any paid time off. However, most US employers offer paid vacation time to their workers. The number of days varies from employer to employer, but on average, US workers receive at least ten days of paid vacation each year.

Public Holidays (2023)

There are nine US federal holidays; private employers are not required by law to observe these holidays, but many employers choose to do it. If a federal holiday falls on a Saturday, the holiday is observed the Friday prior. If the federal holiday falls on a Sunday, the holiday is observed the Monday after.

US Federal Public HolidaysDates
New Year’s DaySunday, January 1 (Observed Monday, January 2)
Martin Luther King Jr. DayMonday, January 16
Presidents’ DayMonday, February 20
Memorial DayMonday, May 29
JuneteenthMonday, June 19
Independence DayTuesday, July 4
Labor DayMonday, September 4
Indigenous Peoples’ Day (also observed as Columbus Day)Monday, October 9
Veterans’ DaySaturday, November 11 (Observed Friday, November 10)
ThanksgivingThursday, November 23
ChristmasMonday, December 25
FAST HIRING PROCESS

Hire employees in the United States. No US entity required.

Traditionally, to hire new employees in a new country, you need to set up a business entity. The good news is that we already have ours in the USA, so you don’t have to spend months working with lawyers, banks, and many other advisors to get yours up and running.

Instead, by using our US Employer of Record Service, Foothold America hires US employees for you without the expense of setting up your own US subsidiary. Not only will employees start working in a fraction of the time it normally takes, but you won’t have to deal with the legal, tax, or HR burdens that come with each state.

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complience man
COMPLIANCE MADE EASY

Federal, state, and local compliance at all times

Due to the ever-changing landscape of US employment law, it is crucial that businesses maintain compliance with regulations that govern their market of operation. Once you find a candidate to hire, our team manages the onboarding process in accordance with local legal requirements and guidelines. We also handle the many complexities of state-specific benefits packages and ensure these are in line with what local employers are required to offer. 

As the legal employer, Foothold America manages your payroll, retirement, income tax deductions, expenses, workers’ compensation, and more for your assigned personnel compliantly in whichever state they live. 

ATTRACT GLOBAL TALENT

Competitive benefits to attract top talent

Sometimes, it can be difficult for small-to-medium-sized businesses to source competitive benefits for their employees. 

With EMS, our EOR service, you get access to our comprehensive benefits package that includes an extensive choice of medical insurance, dental and vision plans, short and long-term disability, life insurance and an attractive retirement plan. Our competitive benefits packages are regularly reviewed by our US experts to meet state-specific regulations and best practices.

Expand to the US without leaving your office

Access useful guidance, speak to one of our US Expansion Advisors, get a quote, sign a contract, and launch your company in the USA – all in just a few clicks.

LOCATION COMPARISON

Where should you hire employees in the US?

The US has multiple regions with their own character, rules, and economic strengths. You should research and identify where in America the opportunity lies for your business – and where the workers with the skills, expertise, and experience you require are likely to be based. 

This choice is specific to your circumstances, but it is worth stressing that there are significant salary and cost of living variations across the US. See below for the average salaries for some of the most popular states, as well as those where salaries are lowest.

Median household income
for five popular US states

States with the lowest
median household income

1. Maryland

$87,063

1. Mississippi

$46,511

2. New Jersey

$85,245

2. West Virginia

$48,037

3. Massachusetts

$84,385

3. Arkansas

$49,475

4. California

$78,672

4. Louisiana

$50,800

5. New York

$71,117

5.  Alabama

$52,035

Median household income
for five popular US states

States with the lowest
median household income

1. Maryland

$78,945

1. Mississippi

$41,754

2. New Jersey

$76,126

2. West Virginia

$43,485

3. Massachusetts

$75,297

3. Arkansas
$43,485
4. California
$67,739
4. Louisiana
$43,485
5. New York

$62,909

5. Alabama

$45,146

Not sure if this service is right for you?
Check out our People Partnership Service (PPS)

CLIENT REVIEWS

Hundreds of businesses have put their trust in us.

10 days ago
10 days ago
Read More

"Foothold was able to get things done for us very quickly. They made life easier for us and worked with us to make sure staff were looked after and that we were able to get up and running."

Operations Manager, UK Network Security Company
1 year ago
1 year ago
Read More

"We needed to access the US market to maximize our potential for growth. We selected our employee and Foothold America managed the payroll and payroll taxes, benefits, taxes and other employee logistics, enabling us to avoid dealing with the bureaucratic maze of employing someone in the US."

CEO, Belgium Manufacturing Company
2 months ago
2 months ago
Read More

"Foothold America was instrumental in helping my UK company employ field applications sales people in the US without having to set up a US subsidiary, which is the usual route for foreign companies. Foothold America facilitated this by employing the people we had chosen and handling all the employment, terms, salaries, taxes, social costs etc. They then billed us monthly for these costs plus a reasonable service charge. As a result, we were able get going very quickly with our own people in the USA and at a much lower cost base."

CEO, UK Biotech Company
7 months ago
7 months ago
Read More

"I couldn’t manage our US subsidiary without Foothold America. Our small HR department isn’t equipped with the knowledge or staff to handle our US employees. I could end my workday in the UK knowing Foothold America would take care of everything in the US."

Head of HR, UK financial services firm
9 months ago
9 months ago
Read More

"We currently use the Foothold America Employee Management Service and plan to move to their People Partnership Service when we set up an entity in the coming months. It’s great knowing we can work with one partner through various stages of our growth."

CMO, Norway IT company
2 years ago
2 years ago
Read More

"We started US expansion on our own and soon after, we stumbled over employee benefits leaving our expat staff and families without healthcare insurance. It was a huge risk for them and our company. Foothold America came in and got us sorted. They’ve been taking care of us ever since."

Sr. People Partner, UK software company
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WHO WE ARE

We're real people. Not platforms

Our team of experts has the knowledge and expertise to help you navigate the legal and administrative maze of doing business in the US.

RESOURCES

FAQ’s

Get answers to all your questions and take the first step towards a US business expansion.

PEO stands for Professional Employer Organization, while EOR stands for Employer of Record. Both PEO and EOR services are designed to help companies manage their HR and administrative tasks, but they differ in some important ways. 

A PEO is a company that provides outsourced HR and administrative services to other businesses. To work with a PEO, you must have or set up a legal entity in the country where the employees would be located. If you consider partnering with a PEO, you will enter into a co-employment relationship. Whilst you would be the legal employer of your employees, the PEO handles payroll, benefits administration, compliance, and other HR-related tasks. The company retains control over its day-to-day operations and management decisions but can offload many of the time-consuming and complex HR responsibilities to the PEO.

An EOR, on the other hand, is a service provider that takes on full legal responsibility for employing workers on behalf of another company. This hiring option is ideal for companies that do not have an entity in the country where their employees would be located. As the EOR becomes the legal employer, they would handle all aspects of employment, including payroll, taxes, benefits, compliance, and more. The client company remains responsible for managing its employees’ day-to-day work but does not have to worry about any of the legal or administrative aspects of employment.

In summary, both PEO and EOR services can be valuable for businesses looking to streamline their HR processes and reduce administrative burdens. However, they differ in terms of the level of responsibility each takes on, whether or not the client has an entity in the country where the employees are located, and the degree of control retained by the client company.

The responsibilities of an employer of record (EOR) can vary depending on the specific arrangement, but generally, an EOR is responsible for handling the administrative tasks associated with employing workers, such as payroll processing, tax withholding and reporting, benefits administration, and compliance with employment laws and regulations. Some specific responsibilities of an EOR may include:

 

1. Onboarding new employees and managing paperwork related to employment.

2. Processing payroll and ensuring timely payment of wages.

3. Withholding and reporting taxes to the appropriate authorities.

4. Administering employee benefits, such as health insurance and retirement plans.

5. Maintaining compliance with relevant employment laws and regulations.

6. Handling employee relations issues, such as grievances or disputes.

By outsourcing these administrative tasks to an EOR, businesses can focus on their core operations while still ensuring that their employees are properly compensated and supported. However, it is important for businesses to carefully evaluate potential EORs to ensure that they have the necessary expertise and resources to meet their needs.

If you decide to expand to the US via our employer of record service, EMS, Foothold America will hire your US assigned personnel and will manage payroll, medical benefits, retirement, income tax deductions, expenses, leave tracking, workers compensation, unemployment for your employee compliantly in whichever state they live.

Whilst we will hire your US assigned personnel, you lead your assigned personnel’s training or day-to-day relationship. You are free to plan professional development and training for your employee. When it comes to state-mandated training, for harassment prevention, for example, Foothold America takes responsibility for ensuring employees complete the required training. We aid our clients in keeping a remote workforce engaged with innovative tools that resonate with US workers. 

If you have decided to expand your business to the US via our Employee Management Service, Foothold America will work with you, your recruiter or our network of recruiters to identify the best candidate for the position. If you already have a candidate in mind, then this is great as well. Once the candidate is selected, we will offer a comprehensive benefits package and extend the hiring offer to your US assigned personnel. Once the offer is signed, the employee can begin in as little as one week. Our onboarding team will ensure the employee’s right to work in the US, will conduct background checks, set appropriate income tax and employer tax deductions and will guide your employee through the online employee portal to enroll in benefits. If things are not working out well with your US assigned personnel,  and you would like to terminate your employment relationship with your US worker or implement a Performance Improvement Plan, when recommended, for your US employee, Foothold America will provide support and assistance to do so compliantly. 

Employer of record (EOR) for tax purposes is a service offered by certain companies that allows businesses to outsource the responsibility of payroll, tax, and insurance compliance. The EOR assumes the legal responsibility of being the employer and handles all employee-related transactions such as hiring, onboarding, payroll, benefits, and taxes. This service simplifies the process of managing employees and eliminates the need for employers to be familiar with local regulations or file taxes in multiple jurisdictions. Employers benefit from this service by saving time and money on administrative tasks while ensuring they remain compliant with local labor laws.

At-will employment means the employee or the employer may terminate their work relationship at any time without the need to provide prior notice, as long as the termination is not discriminatory or for another illegal reason. It is also important to know that most states in the US are considered at-will employment states. To find out more about at-will employment and the doe’s and don’ts of terminating an at-will US employee, click here.  

We understand that sometimes, our clients decide to cease US operations. 

If you would like to discontinue using our Employee Management Service, you would need to give us a one month notice. With our one month notice period, we alleviate the stress of a long term commitment and ensure that the US assigned personnel is terminated compliantly. 

A US Employer of Record can provide many benefits to companies that want to establish or expand their business in the US market. The main benefit is that it enables companies to have personnel in the US, without having to establish a US subsidiary. Besides, EORs help companies reduce their administrative burden and minimise risks associated with local employment laws, taxes, and compliance requirements. It can also provide access to local expertise and networks and allows for flexibility in hiring employees, where companies can quickly onboard employees as per their needs.

Any non-US company looking to establish a presence or expand their business in the United States can benefit from using a US Employer of Record service. Because EORs eliminate the need for costly and time-consuming processes associated with setting up a US subsidiary, this hiring option is particularly useful for small and medium-sized businesses that cannot afford or do not want to establish a local legal entity but want to hire employees and operate in the United States. This hiring option can also benefit companies that prefer a quicker and more efficient entry into the US market. Because setting up a US subsidiary takes time and effort, many companies value the flexibility that comes with not having a physical presence in the US and choose to partner with EORs. Besides, many companies choose to partner with EORs to mitigate risks, as well as other tax obligations that come with having a subsidiary. 

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The US market is waiting. Hire top talent now with our advanced EOR service.

Download the How to Hire in the USA with an Employer of Record​ infographic

Unlock the doors to hiring in the USA with Foothold America’s newest infographic. Learn more about the complex world of expanding to the USA as we guide you through the steps towards seamless growth. Don’t let borders limit your potential – harness our expertise today!

Hire with an EOR