How much does it cost to hire an employee through an EOR in United States of America?

EOR pricing typically ranges from $400–$700 per month per employee, plus the employee's base salary and benefits. Beyond the EOR fee, you'll pay: (1) **Base salary**—market rate for the role in United States of America. (2) **Employer contributions**—approximately 15% on top of salary for taxes, social insurance, and mandatory benefits. (3) **Optional benefits**—health insurance, bonuses, stock options. For example, hiring a developer earning $3,000/month would cost approximately $3,000 + (15% = $450) + $500 EOR fee = $3950/month total.

Is using an EOR legally safe in United States of America?

Yes, using an EOR in United States of America is fully legal and compliant when you work with established providers like Deel, Remote, or Oyster. These providers are registered employers in United States of America and handle all legal obligations. USA has federal employment law plus significant state variation. Employer burden (~15%) is lower than most developed countries. At-will employment is default (can terminate without cause with notice). Compliance varies dramatically by state and local jurisdiction. The EOR assumes the legal employer role, so you avoid misclassification risks that come with contractor arrangements. However, choose reputable EOR providers with proven track records in United States of America—smaller or unregistered providers carry significant risk.

What are the mandatory benefits I need to provide to employees in United States of America?

United States of America requires employers to provide several mandatory benefits: - **FICA**: Employer contributes 7.65% (6.2% Social Security, 1.45% Medicare). - **FUTA**: Employer contributes ~0.6% (up to $420/employee/year) for unemployment insurance. - **State Unemployment**: Employer contribution varies by state (~0.5-5%). - **Workers Compensation**: Employer provides mandatory workers compensation insurance (varies by state/industry). - **Annual Leave**: No federal minimum; state/industry norms vary (typically 10-20 days). - **Paid Sick Leave**: Increasingly required by state/local law (varies). These benefits are built into the EOR fee and handled automatically by your EOR provider. You don't need to manage them separately—just pay the total monthly fee and the EOR handles all compliance.

How long does it take to onboard an employee through an EOR in United States of America?

With an EOR, the typical timeline is 5 days from offer acceptance to the employee's first paycheck. The process includes: (1) **Days 1–2**: Background checks and document verification. (2) **Days 3–3**: Employment contract in local language, tax registration. (3) **Days 4–5**: Payroll setup, benefits enrollment, system access. This is dramatically faster than hiring via a subsidiary (which typically takes 2–3 months), making EOR ideal for time-sensitive hiring.

Should I use an EOR or set up a legal subsidiary in United States of America?

Use an **EOR** if you're: hiring your first employee in United States of America, want to avoid legal complexity and ongoing compliance costs, or plan to hire fewer than 5 people. EORs typically cost $400–$700/month per employee and offer simple, predictable pricing with zero additional administrative burden. Use a **subsidiary** if you're: planning to hire 10+ people in United States of America, want direct control over hiring and contracts, or are already established in the country. Setting up a subsidiary takes 2–3 months and costs $2,000–$10,000 in legal and accounting fees, but gives you flexibility and lower per-employee costs long-term. For most small companies hiring their first international team, EOR is the faster, safer choice.

Which EOR providers support hiring in United States of America?

The major EOR providers supporting United States of America are: **Deel** (150+ countries), **Remote** (80+ countries), **Oyster** (130+ countries), **Rippling** (50+ countries), and **Multiplier** (150+ countries). Each offers similar core features—payroll, compliance, tax handling—with varying prices, customer support, and platform quality. Compare based on: (1) **Price**: $400–$700/month, (2) **Support quality**: Check reviews for your timezone, (3) **Feature set**: Some offer built-in benefits, others are payroll-only, (4) **User experience**: Platform simplicity varies significantly.

What happens to my EOR employee if I stop using the EOR service?

If you decide to leave an EOR service, your options depend on your long-term plan: (1) **Switch to another EOR**: The employee transitions to a new EOR provider within days—no job loss. (2) **Set up a local subsidiary**: The employee becomes employed by your subsidiary. Most EOR providers can help facilitate this transition. (3) **Separate from the employee**: You can terminate the employment agreement with notice (typically 30–60 days in United States of America), following all local severance requirements. Because the EOR is the legal employer, any transitions or terminations must comply with United States of America's labor laws—another reason to use established, licensed EOR providers.

Employer of Record in United States of America

Onboarding Time

5 days

Employer Contributions

15%

EOR Providers

Currency

US Dollar (USD)

Employer Cost Breakdown in United States of America

15%

$750

Monthly cost on $5k salary

~$500

Typical EOR fee/mo

Onboarding time

The United States has the world's largest economy and a mature tech market. US-based hiring offers access to the broadest talent pool and highest compensation. However, employment in the USA is complex due to federal + state variations. Employer burden (~15%) is moderate compared to Europe. At-will employment is default (employer can terminate without cause with notice). However, state laws vary significantly—California is highly protective, while Texas is employer-friendly. Local laws (city, county) can add additional requirements. Using an EOR in the USA simplifies multi-state compliance, FICA/FUTA management, and ensures you navigate state-specific employment laws. Onboarding is fast (5 days). Useful for foreign companies establishing US operations.

EOR Providers for United States of America

Compare the leading Employer of Record providers for hiring in United States of America. All prices are monthly and exclude employee salary and benefits.

Provider	Monthly Fee	Coverage	Best For	Key Features	Action
Deel	$599	150+	Companies scaling globally	Fast onboardingBuilt-in compliance	Get Quote
Remote	$599	80+	Mid-size companies	Own legal entitiesBenefits management	Get Quote
Oyster	$599	130+	Remote-first companies	Guided hiringLocal benefits	Get Quote
Rippling	$600	50+	Tech companies	Unified HR platformIT management	Get Quote
Multiplier	$400	150+	Cost-conscious companies	Competitive pricingMulti-currency payroll	Get Quote

Tip: Most EOR providers offer a free trial or demo. Contact multiple providers to compare features, customer support quality, and specific support for United States of America. Pricing and coverage may change after 2026.

Legal Requirements in United States of America

EIN (Employer Identification Number) registration

State business registration

FICA (Social Security and Medicare) registration

FUTA (Unemployment) registration

State-specific payroll tax registration

Compliance with federal and state employment law

Mandatory Benefits

Benefit	Description
FICA	Employer contributes 7.65% (6.2% Social Security, 1.45% Medicare).
FUTA	Employer contributes ~0.6% (up to $420/employee/year) for unemployment insurance.
State Unemployment	Employer contribution varies by state (~0.5-5%).
Workers Compensation	Employer provides mandatory workers compensation insurance (varies by state/industry).
Annual Leave	No federal minimum; state/industry norms vary (typically 10-20 days).
Paid Sick Leave	Increasingly required by state/local law (varies).

Compliance Guide

**Employment Contract**: No federal requirement for written contract, but best practice. Can be in English. Specify job title, duties, salary, benefits, work schedule, and termination conditions. **EIN Registration**: Employer must register for EIN (Employer Identification Number) with IRS. Used for tax purposes and payroll reporting. **FICA Withholding**: Employer contributes 7.65% (6.2% Social Security + 1.45% Medicare). Withheld from employee paycheck and matched by employer. **FUTA**: Federal unemployment tax (~0.6%) up to $420 per employee per year. Used to fund unemployment insurance. **State Unemployment**: Varies by state (~0.5-5%) depending on experience rating and industry. Employer must register with state unemployment agency. **Income Tax Withholding**: Federal income tax is withheld based on W-4 form submitted by employee. State income tax varies (some states have no income tax). **Workers Compensation**: Employer must carry workers compensation insurance. Requirements and costs vary by state and industry. Provides benefits for workplace injuries. **State-Specific Requirements**: Some states (CA, NY, IL, NJ, etc.) have paid family leave, paid sick leave, or other benefits. Confirm your state's requirements. **Payroll Frequency**: Most common is bi-weekly or semi-monthly. Must comply with state laws on payment frequency and timing. **At-Will Employment**: Default employment relationship. Either party can terminate without cause with notice. However, exceptions exist: implied contracts, public policy, and good faith. **At-Risk Groups**: Some protections exist for specific groups: pregnant employees, disabled employees, veterans, etc. **Tax Compliance**: Federal, state, and sometimes local income tax, plus FICA and FUTA. Quarterly payroll tax filings required.

Why Use an EOR in United States of America?

For foreign companies hiring in USA, EOR simplifies federal tax compliance, state registration, FICA/FUTA management, and state-specific employment law adherence. Particularly valuable for navigating state variations.

Other EOR Options in North-america

Canada

Onboarding: 10 days

14% contributions→

Hiring in United States of America: FAQs

An Employer of Record (EOR) is a third-party company that becomes the legal employer of your remote workers in United States of America. You define the role, manage the day-to-day work, and set the compensation. The EOR handles all employer responsibilities: payroll, benefits, tax compliance, employment contracts, and labor law compliance. This means you can hire full-time employees in United States of America without establishing a subsidiary or legal entity. The process typically takes 5 days from offer to first paycheck.

Start hiring talent in United States of America

Deel handles payroll, compliance, and benefits. No local entity needed.

Hire with Deel