Hiring, Payroll & Employment
in the USA

Hire Employees and Contractors in the USA

Project Global helps international businesses hire, onboard and manage employees and contractors in the USA without needing to establish their own local entity. Through our established presence in the USA and local expertise, we provide Employer of Record (EOR), contractor management, payroll, compliance, recruitment and workforce administration services.

Services available in the USA:

USA Flag

About The USA

The United States of America comprises of fifty states ranging from vast plains to bustling cities and is a global economic powerhouse. It boasts the world’s largest economy by nominal GDP and excels in industries such as technology, finance, healthcare, manufacturing, and entertainment. The highly educated and skilled workforce drives innovation and productivity. Since 1787, a robust constitution has underpinned the nation, fostering entrepreneurship and industry leadership. The USA plays a key role in shaping global economic trends and labour markets. With major commercial centres including Toronto, Vancouver and Montreal, a culture of innovation and close economic ties with the United States, Canada remains a popular destination for businesses looking to build and support global teams.

United States of America: Country Resources

Currency:

United States Dollar (USD)

Capital:

Washington DC

Language:

American English

Ease of doing Business

Easy

Population Size

349.5M

VAT

Ranges from 2.9% to 7.25% depending on which state

Capitol Building, Washington DC

Go Global in the USA

Our multinational clients trust us to take care of international payments and compliance for employees, contractors and freelancers working in the US.

You can use our Employer of Record (EoR) service to employ your team via our legal entity – onboarding your Top Talent quickly and with ease.

Experience our world class service – for your business and your team.

Explore Other North American Employment Guides

Explore our country-specific guides covering employment, payroll, compliance and workforce management across North America.

Canada

Canada

Source, onboard and manage workers in Canada.

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FAQ's

In the USA, public holidays are established by federal law, but individual states and employers may recognize additional holidays. Some commonly recognized federal public holidays include New Year’s Day, Independence Day, Thanksgiving Day, and Christmas Day. Employers are not required to provide paid leave on these holidays, but many do as part of their benefits package.

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. Employees are entitled to overtime pay at a rate of one and one-half times their regular rates of pay for hours worked in excess of 40 in a work week.

In the USA, the Family and Medical Leave Act (FMLA) allows eligible employees to take unpaid, job-protected leave for specified family and medical reasons, such as:

Birth of a child and to care for the newborn
Adoption or foster care placement of a child
Caring for an immediate family member (spouse, child, or parent) with a serious health condition
Medical leave when the employee is unable to work due to a serious health condition
Employees are entitled to 12 weeks of leave in a 12-month period for these reasons. Some states have additional leave provisions, and certain cities and states require paid sick leave​​.

In the USA, most employment is at-will, meaning that an employer can terminate an employee at any time for any reason, or for no reason, as long as it is not illegal (e.g., discrimination or retaliation). Exceptions exist in Montana and Puerto Rico, where at-will employment is not recognized after a probationary period, and termination must be for cause.

Employers are required to provide certain types of insurance to employees:

  • Workers’ Compensation Insurance: Covers medical expenses and lost wages for employees who are injured on the job.
  • Unemployment Insurance: Employers contribute to state-administered unemployment insurance funds, which provide benefits to eligible workers who become unemployed through no fault of their own.
  • Disability Insurance: In some states, employers must provide disability insurance to cover non-work-related injuries or illnesses.
  • Health Insurance: Under the Affordable Care Act, large employers (those with 50 or more full-time employees) must offer health insurance that meets minimum essential coverage requirements or face penalties.
You can employ someone in the United States without establishing your own US legal entity by using an Employer of Record (EOR). The EOR becomes the legal employer while your organisation continues to direct and manage the employee’s day-to-day work.
 
Project Global has US employment infrastructure and experience supporting overseas organisations that want to hire US-based employees without creating their own US company. This allows businesses to access talent quickly while managing payroll, employment administration and compliance requirements through an established local structure.
 
Unlike many countries, US employment law operates at multiple levels. Federal requirements apply nationwide, but each state may also have its own rules covering employment, payroll, leave, workers’ compensation, unemployment insurance and worker classification.
 
The employee’s work location can therefore affect employment costs, contract terms, statutory rights and onboarding requirements. This is one reason why international employers often prefer to work with local employment specialists when hiring across multiple states.
 

An Employer of Record can be a practical option when you want to hire people in the United States without creating and operating your own employment infrastructure. Establishing a US entity may be more appropriate for organisations building a larger long-term operation.
 
The right approach depends on headcount, planned growth, state locations, employment costs, compliance obligations and business objectives. The most effective solution is usually determined by your specific expansion plans rather than by employee numbers alone.
 

The total cost of employment includes more than salary. Depending on the employee’s location and package, employers may need to budget for payroll taxes, unemployment insurance, workers’ compensation, statutory benefits and other employment-related costs.
 
Costs can also vary between states. Some states require additional insurance arrangements, leave entitlements or payroll registrations that may not apply elsewhere. For this reason, employment costs should always be calculated based on the employee’s actual work location.
 

A genuine independent contractor can be engaged in the United States, but the structure must reflect how the person works in practice.
 
Indicators of lower-risk contractor arrangements include project-based work with a defined scope, freedom to set working hours, use of the contractor’s own equipment, delivery against agreed outcomes and the ability to work for multiple clients.
 

No.
 
Operating through an LLC or other business structure does not by itself determine employment status. Classification depends on how the work is performed and the level of independence the individual genuinely has.
 
A worker operating through a company may still create classification concerns if they work exclusively for one organisation, are closely supervised or become integrated into the client’s day-to-day operations. The business structure is only one factor within a broader assessment.
 
Worker classification remains one of the most important employment risks for organisations engaging US talent.
 
Risk can increase when a contractor works in a role that resembles employment, particularly where they are integrated into the business, managed like an employee or work exclusively for a single client. Longer-running staff-like arrangements often require additional scrutiny, but project duration alone does not determine classification.
 
Both short-term and long-term engagements should be assessed based on the reality of the working relationship rather than contractual labels.
 

The most effective approach is to assess the working relationship before the engagement begins.
 
These include several characteristics commonly associated with genuine freelance arrangements, including project-based delivery, contractor control over working methods, use of personal equipment, outcome-based invoicing and limited integration into the client’s business.
 

The contract should accurately reflect the practical arrangement and be reviewed if the scope of work changes significantly during the engagement.
 

Before onboarding a US freelancer, organisations should understand who they are engaging and how the business is structured.

Best practice is to request a W-9 tax declaration. This identifies the freelancer’s status and whether they are operating as an individual or through a registered business. US businesses are generally registered at state level rather than through a single national register, so business verification requirements can vary depending on location.

Proper onboarding helps reduce payment delays and compliance risks later in the engagement.

Check onboarding requirements for your proposed freelancer.

Yes.
 
The United States is one of the territories where Project Global can support self-billing arrangements for eligible freelancer engagements. The suitability of self-billing depends on the engagement structure and compliance review, but unlike some countries, the current US guidance permits this approach.
 

Workers’ compensation is an important employment consideration in the United States and requirements differ by state.
 
Employers hiring US employees typically need to consider workers’ compensation obligations as part of their employment structure. Because requirements vary significantly between states, the applicable rules should be reviewed based on the employee’s location before employment begins.
 

Many organisations need support not only finding talent but also deciding the most appropriate engagement model.
 
Project Global can help organisations source specialist talent and then determine whether employment, EOR support or a freelance engagement is the most suitable route. This is particularly valuable in media, creative and technology sectors, where project-based assignments, independent professionals and specialist consultants are common.
 
Considering recruitment and engagement strategy together helps reduce risk and allows organisations to move more quickly once the right person has been identified.
 

Yes.
 
Project Global has a US corporate structure and has successfully supported organisations employing workers in the United States through local employment arrangements. This includes employment contracts, onboarding, payroll administration, compliance reviews and ongoing workforce support.
 
Each engagement is reviewed individually to ensure the proposed structure is appropriate for the employee’s role, state location and working arrangements.
 

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