US Employer of Record Service. Hiring Made Easy.
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.
What is the Employee Management Service, Foothold America's US Employer of Record Service?
Our advanced 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).
OUR EMPLOYER OF RECORD USA SERVICE
We remove complexity,
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.
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.
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.
We offer direct access to in-country employment law guidance for those challenging employment situations.
We provide a comprehensive suite of the benefits US employees expect in accordance with all local laws and requirements.
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 our Employer of Record (EMS) service right for your company?
Find out what EMS clients have to say about Foothold America
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
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.
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.
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, 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.
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
$1,000 – $1,800
Per employee per month
Expand with Foothold America
$800 – $1,200
Per employee per month
Quick HR guide to hiring employees in the USA
Taxes & Wages
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 Liability||Average Tax Rate (%)|
|Federal Insurance Contribution Act (FICA)||6.2%, up to $147,000 annual salary|
|Medicare portion of FICA||1.45% 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’ Compensation||varies 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.
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
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.
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.
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.
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.
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
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 Holidays||Dates|
|New Year’s Day||Sunday, January 1 (Observed Monday, January 2)|
|Martin Luther King Jr. Day||Monday, January 16|
|Presidents’ Day||Monday, February 20|
|Memorial Day||Monday, May 29|
|Juneteenth||Monday, June 19|
|Independence Day||Tuesday, July 4|
|Labor Day||Monday, September 4|
|Indigenous Peoples’ Day (also observed as Columbus Day)||Monday, October 9|
|Veterans’ Day||Saturday, November 11 (Observed Friday, November 10)|
|Thanksgiving||Thursday, November 23|
|Christmas||Monday, 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.
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.
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
2. New Jersey
2. West Virginia
5. New York
Median household income
for five popular US states
States with the lowest
median household income
2. New Jersey
Not sure if this service is right for you?
Check out our People Partnership Service (PPS)
Hundreds of businesses have put their trust in us.
"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
"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
"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
"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
"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
"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
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.
Joanne M. Farquharson
US entrepreneur with 30 years experience in advising small and medium-sized businesses in employee benefits, insurance, labor law compliance, and risk management. Joanne has a passion for growing small companies and helping business owners actualize their goals.
Experienced Global Management leader with over 15 years of professional services and consulting experience. Highly knowledgeable in Human Resources, Employee Relations, Global Operations and Outsourcing. Strong Compliance background experience with employee contracts and US & Global Immigration.
Seasoned, determined, and highly accomplished executive professional with extensive experience spearheading financial services, managing business operations, monitoring performance indicators, and delivering high-quality strategic business support to drive exponential revenue growth for top-tier companies.
Robert R. Esquijarosa
Experienced HR & Client Success professional with a demonstrated 15-year history of working in employee relations, payroll & benefits administration, compliance, and recruitment within multiple industries throughout the US and UK.
US Expansion Advisor with 20 years of global HR experience, recruitment and client delivery, supporting clients from the UK, Europe, US and Australasia. Rose has extensive knowledge of candidate attraction and employee communication management.
Miruna Eliza Ionescu
Multilingual marketing professional with more than ten years of experience in traditional and digital marketing for B2B and B2C sectors. Miruna has an extensive background in building customer engagement and ensuring that clients have the best tools and information in hand.
Angelique Soulet-Bangurah, PHR
Angelique takes pride in providing client solutions, using more than seven years of experience as an HR Generalist with a vast knowledge of onboarding, employee relations and overall HR operations. She’s certified by the HR Certification Institute as a Professional in Human Resources (PHR).
Over 25 years of experience doing business in North American, European, and Asian markets, including seven years as an International Trade Advisor with a primary focus and specialism on the complexity of the US market.
Ovidio E. Santistevan
Senior Staff Accountant with over 25 years of finance experience and more than ten years as a full-cycle accountant. Ovi takes pride in ensuring that the information he provides to our clients and partners is accurate, relevant, timely and easily understandable.
Kate has a background of supporting the UK, US and Australia, with strategic direction on all areas of HR. She’s an experienced and CIPD-qualified HR professional with extensive experience in a variety of areas of human resources, including employee relations, HR strategy, recruitment, law advice, document creation, M&A, diversity and inclusion and learning & development.
This conversion-minded marketer is responsible for strategizing, planning and creating high-calibre content for our website visitor’s digital experience. With over seven years in marketing, Natalie specialises in PPC, SEO, emerging trends, and customer behavioural insights that help clients find the best solutions for their business needs.
Charlotte has worked as a Content Writer for 8 years and as a creative and analytical marketeer, she enjoys all aspects of her role, from content creation to audits, campaign testing, research and editing. Having worked in a content driven role for a trade association for many years, Charlotte’s experience in creating pragmatic, yet creative content, designed to inspire and educate SME businesses, is unparalleled.
Our HR & Client Specialist Priti is experienced in various HR activities such as recruitment and retention, compensation, labour relations, benefits and leave of absences. And her passion is troubleshooting data issues to identify strategic solutions using knowledge of HR process, benefits, training and development. She’s lived in the US for 18+ and dedicated most of them to her career in HR. With Priti, you are definitely in good hands.
Jisselle has 8+ years experience of efficient business administration, data analysing and reporting in diverse industries. She’s a HubSpot wizard and strives on improving operations that deliver high-value returns for our clients. Jisselle works closely with all departments ensuring efficiency and satisfaction.
Robert is the Co-founder of several successful US and UK life science companies. He serves as the Board Chair of Foothold America influencing the direction of the company.
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. When a company partners with a PEO, the PEO becomes the employer of record for the company’s employees, meaning that 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 means that the EOR handles 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 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.
The difference between PEO (Professional Employer Organization) and EOR (Employer of Record) is that a PEO acts as an employer for the company’s workforce, while an EOR provides a range of administrative services related to hiring and payroll.
A PEO is responsible for all aspects of the employment relationship, including recruiting, hiring, managing payroll and benefits, setting employee policies, handling disciplinary action and terminations, and ensuring compliance with relevant labor laws.
An EOR, on the other hand, provides administrative services such as payroll processing, tax filing and remittance, employee onboarding and offboarding, employee benefits management, and compliance with relevant labor laws. An EOR does not manage the day-to-day operations of the company’s workforce; rather they provide assistance to make sure HR processes are handled properly.
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.
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The US market is waiting. Hire top talent now with our advanced EOR service.