No US entity? No problem.
Hire anywhere in the US with our Employee Management Service (EMS)
Setting up a US local entity, payroll, benefits, and trying to keep on top of local employment laws all take time, cost money, and can delay your journey to success. You can build a compliant presence in the USA and hire top talent without having to establish a US entity alongside a globally trusted expansion partner that is more advanced than any other EOR services and PEOs.
What is the Employee Management Service?
Our employer of record service, EMS, offers a turn-key, cost-effective solution for your company to have a legitimate US presence with US employees anywhere in the country and 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 assigned personnel dedicated to you to unlock your global expansion.
We remove complexity,
Establishing a US entity can take months to complete. As the employer of record, 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, and structuring compensation packages. As local experts, we help you stay within the rules by being your extended HR team.
As an employer of record, 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.
With our EOR service, you can enter and exit the United States market as you wish, without a long-term commitment.
Is our EMS service right for your organisation?
Find out what EMS clients have to say about Foothold America
Ready to start your US business expansion?
HOW IT WORKS
How our Employee Management 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 EMS 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 guide to hiring 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|
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 health 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 work week, 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, 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 (2022)
There are nine US federal holidays; private employers are not required by law to observe these holidays, but many employers chose 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||Sat, 31 Dec 2022|
|Martin Luther King Jr. Day||Mon, 17 Jan 2022|
|Washington’s Birthday||Mon, 21 Feb 2022|
|Memorial Day||Mon, 30 May 2022|
|Juneteenth||Sun, 19 Jun 2022|
|Independence Day||Mon, 4 Jul 2022|
|Labor Day||Mon, 5 Sept 2022|
|Columbus Day||Mon, 10 Oct 2022|
|Veterans Day||Fri, 11 Nov 2022|
|Veterans Day||Fri, 11 Nov 2022|
|Thanksgiving||Thu, 24 Nov 2022|
|Christmas Day||Mon, 26 Dec 2022|
FAST HIRING PROCESS
Hire employees in the United States. No entity required.
Traditionally, to hire new employees in another 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 Employee Management 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 TOP 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, 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.
INVEST IN THE USA
Why invest in the USA?
To put it simply, investing in the USA provides an amazing opportunity to grow revenue. With a GDP of more than $20 trillion, the United States offers a huge opportunity for companies that want to expand internationally.
Combining top talent, unparalleled market access, and unbeatable opportunities, the USA abounds with growth opportunities for global investors.
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 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 health 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
Meet our team of experts
Foothold America has the knowledge and expertise to help you navigate the legal and administrative maze of doing business in the US.
PRESIDENT AND CEO
Joanne M. Farquharson
US entrepreneur with 30 years experience in advising small and medium-sized businesses in international employment, employee benefits and employment contracts, insurance plans, labor law compliance, and risk management. Joanne has a passion for growing small companies and helping business owners actualize their goals.
Vice President of People & Operations
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.
Head of HR Operations & Client Service
Robert R. Esquijarosa
US Expansion Advisor
US Expansion Advisor
Senior Staff Accountant
Ovidio E. Santistevan
HR & Client Service Manager
Senior Marketing Manager
Miruna Eliza Ionescu
CoFounder & Board Chair
Digital Marketing Manager
HR & Client Service Specialist
Experienced Human Resources Professional with 15+ years of experience in employee relations, staff development, payroll, benefits administration and HRIS management in the US. Jennifer enjoys providing excellent client service solutions and effectiveness.
Get answers to all your questions and take the first step towards a US business expansion.
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.
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.
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.
GET IN TOUCH
Request a quote, talk with our US expansion experts or ask any questions. We will get back to you within one business day.