Hire in United States

Employer of Record(EOR) in United States

United States Workforce Unlocked: How Employer of Record Makes Hiring Easy

Talk to our experts

At a Glance

Capital City
Washington D.C.
ChaadHR entity
Own Entity


Hire employees
$599.00 / month
Hire contractors
$49.00 / month


The USA is known to be one of the most developed countries and is considered to be a high-income nation. The main economic contributions of the country are the industry and service sector. The country holds the highest economy in the world with 24,796 (in billion U.S. dollars) GDP per capita. Most businesses are into expansion in the US for better economic growth.

Major Economic Hubs:

Washington, D.C., New York City, California

Skills in Demand:

Software Engineer, IT Engineer, Data Analyst, Data Scientist

Public and Provincial Holidays

Employee Leaves

The annual leaves, sick leaves and maternity leaves will be determined by the employment agreement.


Resident Tax Information

The tax brackets play an important role for an employee so they understand how much of  deductions can be expected from the employer thereby allowing them to understand the  amount that finally they can expect in-hand.


A 401(k) plan is a retirement savings fund offered by numerous American organizations which gives many tax benefits to the employee. Any professional working for a company, who signs up for a 401(k), agrees to the deduction of a fixed amount from their paycheck, which goes directly to an investment account. The employer can match the amount, or a part of it, while the employee can select from a  number of investment options.  

There are four types of 401(k)s:


The amount is deducted from the gross income, before the income tax is levied. As a  result, the taxable income is reduced but there are no remaining dues on the money contributed, until the employee withdraws the money. The employee must pass the Actual  

Deferral Percentage (ADP) and Actual COntribution Percentage (ACP) tests to retain a  traditional 401(k) plan.

Safe harbor

This plan automatically passes the ADP and ACP tests each year. These plans are popular  amongst small businesses; however, they must contribute a certain amount to the plan  regardless of the employee’s job title, duration of service or compensation.


The best plan for small businesses or self-employed professionals having 100 or fewer  employees. In this plan too, the employee does not have to perform non-discrimination  tests. However, they cannot receive the benefits of other employer-sponsored retirement  plans and the contributions cannot be canceled once released.


The amount is deducted from the post-income tax paycheck, so the employee does not  have to pay any additional tax while withdrawing the amount at a later stage. However,  very few employers offer a Roth 401(k) account.

Contribution Limit

Fringe Benefits

Fringe benefits are additional benefits which companies offer their employees in the form  of financial compensation or commodities. Such benefits are either awarded for covering  the employee’s cost related to work and sometimes to generate job satisfaction. The  motive of fringe benefits is to hire and motivate high performing employees.  

Common fringe benefits include:

  • Health insurance
  • Life insurance
  • Tuition assistance
  • Cafeteria subsidies
  • Below-market loans
  • Childcare reimbursement
  • Employee discounts
  • Employee stock options
  • Company-owned vehicle
  • Vacations
  • Discount on properties
  • Commercial flight tickets
  • Membership to social clubs
  • Tickets to entertainment or sporting events
  • Worker’s compensation
  • Retirement plans

While the aforementioned fringe benefits are taxable, depending on their fair market value,  there are few such benefits which are exempt from tax according to the IRS. Following are  the fringe benefits for which employees do not have to pay any tax:

  • Adoption assistance
  • Athletic facilities
  • De minimis benefits (small perks like free coffee)
  • Educational assistance
  • Employee discounts
  • Achievement awards
  • Dependent care assistance
  • Accident and health benefits
  • Employee stock options
  • Employer-provided cell phones
  • Group-term life insurance coverage

Exempt Benefits

Depending on their fair market value, there are few benefits which are exempt from tax  according to the IRS:

  • Accident and health benefits
  • Adoption assistance
  • Educational assistance
  • De minimis benefits
 (small perks like free coffee)
  • Employee stock options
  • Group-term life
 insurance coverage
  • Achievement awards
  • Athletic facilities
  • Employee discounts
  • Dependent care assistance
  • Employer-provided cell phones

Long-term Incentives

Long-term incentives are the largest component of a senior-level employee’s pay. Over the  years, the scale increased by 4.1% while short-term incentives have decreased by 5.3%.  Long-term benefits are offered to executives as at this position, their compensations may  be too massive to be offered in cash. Thus they are offered in the form of stocks and  equity.

The logic behind offering equity compensation is that a portion of the executive’s overall  pay is aligned with the value of the company. If considering equity compensation, the  existing owners must be willing to share ownership.  

Common forms of equity-based incentives include:

  • Company stock
  • Stock bonus and employee stock purchase plans
  • Profits interest and capital interests (in partnerships)
  • Stock options  (incentive and non-qualified)
  • Phantom stock
  • Restricted stock
  • Stock appreciation rights

Long-term incentives (LTI) are of three types


Value is calculated as per the increase in a company’s underlying value, which is reflected  

in share prices in case of a listed company. The employee will receive the difference  between the company’s underlying value at some point in the future and the same value  when the stock options are allocated.


Value is received by the employee in the form of company stocks. However, the final  payout may depend on the employee performance. Some companies also grant “phantom  shares”, which trace the movement of the underlying value but pay out in cash


Value is delivered in cash payments, without any relations whatsoever to performance of  shares. The cash payment is received strictly on a performance basis.

Often long-term incentives are given after obtaining the approval of the board

Termination/Severance in United States

Termination Process

The USA follows “Work at will,” meaning there is no set length of an employment relationship. Either the employer or the employee can put an end to it at any particular time, with or without notice, and also, with or without cause. If there is an employer policy, employment contract, or union agreement, the employment relationship shall be in accordance with those terms and conditions of that agreement.

Notice Period

As the employment is done “at will,” there is no notice period. Although if the employer mentions any specific notice period, the employee has to serve it.

Severance Pay

There is no statutory law for severance pay in the USA.

Get started - free

ChaadHR an experience like no other

Autopilot Global Payroll
Streamline payments in more than 70 currencies and manage your worldwide payroll in one location. Put it on autopliot mode and never worry about it again.
Scalable Pricing
Competitive pricing. We offer different payment plan for SMBs and enenterprises. Get discounts when you hire more.
Speedup Global Expansion
No more sourcing and vetting local vendors for weeks. No more email back and force every payroll periods. We take care of everything in hours.
Third-party Integrations
Have your favorite HR system or accounting software? No problem, we support varies thrid-party intergrations.
Local Expert
We have local experts on the ground, offering in-country support. Your employee are in good hands.
Compliance Ready
We take all responsibility for ensuring that you comply with local regulations when you hire employees through Chaad.
manage your global team

We handle the complexity, so you don't need to.

Payroll management tools

Run payroll with zero effort

Pay your employees in 70+ currencies and take advantage of the best currency rates available. Send global payments with a single click and keep track of your transfers in real time.

150+ countries EOR system

Employer of Record

With our Employer of Record(EOR) network you don't need to set up entities to hire full-time talent abroad. We help you hire in 150+ countries and ensure 100% compliance with local laws.

EOR in 150+ countires
Handle taxes, social contributions
compliance ready System

Stay Compliant

We take care of all the details to make sure you comply with local laws, including those related to taxes, social security, the minimum salary, termination regulations, and more.

Sign Local Contract
Business Liability Free

Trusted by global businesses and leaders

“ChaadHR is like a global-hiring specialist sitting by our side, and makes hiring globally as smooth as hiring on our local sites. We hire people, present requirements, and ChaadHR covers everything else.”

Yuki Akiyama
HR Director, Bimgoo

“Hiring compliance is always a complicated issue during global hiring. ChaadHR optimized this problem transparently and thoroughly. We no need to worry furthermore, and our employees and contractors also feel comfortable and give us positive feedback about ChaadHR."

Andrew Ellison
Hiring Manager, Wimton Logistics

Pick plan that best suits your needs

$ 49.00 USD
Get started
per month, per contractor
Compliant contracts for 150+ countries
Free local payments in 70+ currencies
Manage payroll, compliance and onboarding, all in one place
International payments at low cost
$ 299.00 USD
Get started
per month, per employee
Leverage our EOR, Hire employee in 150+ countries.
Local tax, employment, accounting and legal expertise
Offer local benefits
24/7 customer service
Global Payroll
Get a quote
Book a Call
Multi-country payroll in countries where you have entities
Streamline your global payroll processing
Ensure compliance with the latest local wage regulations
Generate and access payroll reports by country
Reduce costs by centralizing payroll management
Custom pricing
Contact Sales
Tailored solutions for global enterprise
Dedicated to supporting the employment of employees in multiple countries simultaneously
Professional technical support team
Free consultations with our in-house HR and legal experts
Customized reporting, benefits and payroll administration, and system integrations