Hire in the United States compliantly. Navigate 50-state payroll tax variation, at-will employment that still carries wrongful termination risk, no federal paid leave mandate and an ACA health insurance obligation that adds $6,000-$15,000 per employee per year.
Capital
Washington
Language
English
Average Salary
$5,200
Payroll Cycle
Bi-weekly
Employer Cost
10-30%
Paid Leave
No mandate
Public Holidays
11 days
Tax Rates
10-37%
Hiring guides covering regulations, contributions and costs when you hire in the United States. Updated for 2026.
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The United States is the only major economy with no federal paid leave, no universal health coverage, and 50 separate state employment law regimes. An EOR must manage FICA withholding, FUTA/SUTA unemployment taxes, ACA-compliant health insurance, workers’ compensation across every state, and at-will termination with wrongful dismissal exposure.
Our assessment of EOR providers for the United States evaluates multi-state payroll accuracy, ACA compliance, workers’ comp coverage and state-specific paid leave programme administration.
When you hire in the United States, the absence of federal mandates for paid leave, sick pay and health insurance creates a system where benefits are largely employer-defined. This makes hiring in the US uniquely flexible but also uniquely complex, as state laws fill the gaps with varying requirements.
| Key Employment Facts | |
| Federal Minimum Wage | $7.25/hour (unchanged since 2009; 30+ states set higher rates) |
| Probation Period | No statutory concept (at-will employment) |
| Standard Working Hours | 40 hours/week (overtime at 1.5x after 40 hours under FLSA) |
| Paid Annual Leave | No federal mandate (average: 10-15 days by employer policy) |
| Notice Period | No federal requirement (WARN Act: 60 days for mass layoffs of 100+) |
| 13th Salary | Not statutory |
| Sick Leave | No federal mandate (15+ states and many cities require paid sick leave) |
| Maternity Leave | FMLA: 12 weeks unpaid (employers with 50+ employees); 13 states + DC have paid programmes |
| Paternity Leave | Same FMLA entitlement as maternity (12 weeks unpaid); paid in states with PFML |
Good to Know: The United States is the only OECD country with no federal paid maternity leave. In practice, competitive employers offer 10-20 days PTO, employer-sponsored health insurance, 401(k) retirement plans with employer match (typically 3-6% of salary), and short/long-term disability insurance. These voluntary benefits add 20-30% to base salary cost and are expected by professional workers. States with mandatory paid family and medical leave include California, New York, New Jersey, Massachusetts, Washington, Connecticut, Oregon, Colorado, Maryland, Delaware, Minnesota, Maine, Rhode Island and the District of Columbia. Each has different contribution rates, benefit durations and eligibility rules.
When you hire in the United States, mandatory employer payroll taxes (FICA + FUTA + SUTA) add approximately 10-12% to base salary. With health insurance, 401(k) match and other benefits, total employer cost typically reaches 1.25-1.40x gross salary.
| Employer Contributions (2026) | |
| Contribution | Employer Rate |
| Social Security (OASDI) | 6.2% on earnings up to $184,500 |
| Medicare | 1.45% (no wage cap) |
| FUTA (federal unemployment) | 0.6% on first $7,000 (after 5.4% state credit) |
| SUTA (state unemployment) | Varies by state and experience rating (0.1-12%+) |
| Workers’ compensation | Varies by state and industry ($0.50-$5+ per $100 payroll) |
| ACA health insurance (50+ FTEs) | ~$7,000-15,000/year per employee |
| Total Mandatory Payroll Taxes | ~10-12% (before benefits) |
| Employee Taxes (2026) | |
| Tax / Contribution | Employee Rate |
| Federal income tax | 10-37% (7 brackets, progressive) |
| Social Security | 6.2% on earnings up to $184,500 |
| Medicare | 1.45% (+ 0.9% on earnings above $200,000) |
| State income tax | 0-13.3% (9 states have no income tax) |
| State disability/PFML (where applicable) | Varies by state |
| Total Federal Payroll (employee share) | 7.65% + federal income tax |
Good to Know: Hiring in the United States looks cheap on mandatory payroll taxes (7.65% FICA employer share) compared to European countries at 20-40%. But that is misleading. A competitive US employer offering health insurance, 401(k) match, PTO and disability insurance spends 1.30-1.40x base salary in total compensation cost. For an employee earning $80,000/year: $6,120 in FICA, ~$42 in FUTA, ~$300 in SUTA, ~$8,000 in health insurance, ~$3,200 in 401(k) match (4%), ~$1,500 in workers’ comp and other benefits = roughly $99,000-$102,000 total cost (1.25-1.28x). The key difference from Europe: these benefits are voluntary (except FICA and workers’ comp) but functionally mandatory for hiring professional talent. No health insurance and no 401(k) match makes you uncompetitive for any role paying above $50,000.
The United States has 11 federal holidays. Private sector employers are not legally required to give any of them off. Most professional employers observe 6-10. Federal, state and bank employees generally receive all 11.
|
Date |
Holiday |
|
January 1 |
New Year’s Day |
|
January 19 |
Martin Luther King Jr. Day |
|
February 16 |
Presidents’ Day |
|
May 25 |
Memorial Day |
|
June 19 |
Juneteenth |
|
July 3 (observed) |
Independence Day (July 4 is Saturday) |
|
September 7 |
Labor Day |
|
October 12 |
Columbus Day |
|
November 11 |
Veterans Day |
|
November 26 |
Thanksgiving Day |
|
December 25 |
Christmas Day |
Good to Know: Private sector employers are under no federal obligation to provide any paid holidays. In practice, most employers observe at least 6 core holidays (New Year’s, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas). Juneteenth was added as a federal holiday in 2021 and adoption by private employers is growing but not universal. Columbus Day is increasingly replaced by Indigenous Peoples’ Day by some employers and state governments. When a holiday falls on Saturday, the preceding Friday is typically observed; when it falls on Sunday, the following Monday is observed. In 2026, July 4 falls on Saturday, so Friday July 3 is the observed day off.
Ready to hire in the United States? Filter providers by multi-state payroll capability, ACA compliance, workers’ comp coverage and pricing using the Employsome Comparison Tool. Over 130 providers compared.
