The US’s vast talent pool and economic power are ideal, but its labor laws vary by state and can complicate hiring. Omnipresent, as your Employer of Record (EOR), ensures compliance with IRS regulations, no local entity needed.

Our EOR services cover payroll, benefits like paid time off, and taxes, freeing you to oversee teams in New York, California, or beyond. We deliver a tech-driven solution tailored to the US’s diverse market.

• Swift hiring across states.
• Payroll in USD, locally aligned.
• Local wage and benefit guidance.
• Seamless scaling support.

Employer costs include Federal Insurance Contributions Act (FICA) Social Security/Medicare, Unemployment, and Life Insurance. Use the OmniCalculator to estimate costs, or contact us for further information.

Income taxes

Federal withholding is based on the employee’s W4, taxable wages and pay frequency. 

State withholding is based on the employee’s state form, taxable wages and pay frequency.

Employee contributions

Social Security is 6.2% of taxable wages (for both the employee and employer) up to a limit ($160,200 for 2023). Taxable wages will vary depending on an employee’s pre-tax deductions.

Medicare is 1.45 % of taxable wages (for both the employee and the employer) with no limit. The employee portion increases to 2.9% when the employee goes over $200,000 of taxable wages. Taxable wages will vary depending on an employee’s pre-tax deductions.

Working Hours per Week:‍

The standard US workweek is 40 hours. Typical working hours are 9 to 5 from Monday to Friday.

Overtime Laws:‍

Federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the act must receive overtime pay for hours worked over 40 in a workweek at a rate no less than time and one-half their regular rates of pay. There is no limit in the act on the number of hours employees aged 16 and older may work in any particular week. The Act also does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.

There is no national requirement in the US to offer paid sick leave, though many states have their own laws on this. The Family and Medical Leave Act (FMLA) requires companies with more than 50 employees to allow them unpaid time off for medical leave or to care for a family member. It’s important to note that in reality, even without a legal obligation to provide paid leave, 74% of full-time US workers have an arrangement with their employer to provide paid time off in the event of sickness. Arrangements vary from state to state.

Maternity Leave:‍

FMLA was signed into law in 1993 and requires employers to provide up to 12 weeks unpaid leave for both parents at the birth of a baby for companies of 50 employees or more. Many smaller businesses do not have mandated paid maternity leave for employees. 

Paternity Leave:‍

Paternity leave varies state by state. Many states do not require employers to provide paid paternity or parental leave. If an employee is eligible and covered by FMLA, they may be allowed unpaid leave from the federal government. 

Vacation time is not required by US law. Instead, it's a benefit decided on an individual basis between employees and employers. 14 working days off is standard practice.

Employees do not have the legal right to severance pay.

In almost all states, an employer can terminate an employee for any non-discriminatory, non-retaliatory reason, at any time, with or without notice, and with or without cause. But typically, employees are terminated with 2 weeks notice.