Payroll and HR in the US

Local Information

Local Time (LIVE):10:43 PM(AKST) – 2:43 AM(EST)
Local Currency:$1
Business Language(s):English
Tax Year Dates:1 Jan – 31 December

 

Thinking about expanding your business to the USA? With the world’s largest consumer market and multiple free trade agreements, the United States’ openness to new business is part of what makes it an appealing choice for those looking to expand to America.

A recognized leader in R&D and workforce talent, the US’s working nation are well known for being diverse and among the most productive and innovative in the world. It’s considered to be one of the most competitive and easiest places in the world to do business, so you’ll be in great company.

Whilst legislation may be more transparent than other countries, it is nonetheless extensive and complex. This is particularly true if managing payroll and HR across multiple countries! Fortunately, FMP Global have international payroll and HR experience spanning over 40 years – we’ll take away the hassle and make your business’s compliance our top priority.

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Details correct at time of publication. You should not rely on these details without first seeking professional international advice.

Employer Must-Dos

In the US, the following reports must be submitted to strict deadlines

  • Federal and State tax returns
  • Form W-2, Wage and Tax Statement – wages, tips and other compensation
  • Form W-3, Transmittal of Wage and Tax Statements

Payroll in the USA

What tax considerations are there?

In the US, Federal income tax is deducted from all citizens and residents and is determined by individual income levels. Most employees have this tax deducted automatically from each paycheck they receive (Pay-As-You-Go system).

In addition to Federal income tax, the majority of states also enforce state and local income tax which is levied by individual state governments. These can vary greatly from state to state, however seven states do not impose State income tax, these are (Wyoming, Washington, Texas, South Dakota, Nevada, Florida, and Alaska).

The Federal Insurance Contributions Act (FICA) means that employers must withhold three taxes from their employees. These include social security tax, Medicare tax and Medicare surtax. As an employer you must also pay an employer’s portion of these taxes.
Businesses are also subject to corporate income tax at Federal, State and Local level.

HR in the UK

What are the regular working hours in the UK?

The regular working hours in the US are a 40-hour week. Standard hours span 9am-6pm, Monday to Friday with a 1 hr lunch break.

Termination

Unlike other countries, US states recognize ‘at-will’ employment. Excluding states with limitations, this means that employers in the US can terminate employees’ contracts at any time for any reason (aside from reasons to do with discrimination). Exceptions can be quite broad, so any employee termination must be handled correctly.

Find Out More About International Payroll

For more information to do with international payroll, key considerations and implications abroad, download our international payroll guide today.

Download Our Guide

FMP’s USA Payroll and HR Solutions

Whether you are looking for payroll and HR in New York, Texas, California or Florida, FMP Global can help. We have over 40 years of experience ensuring businesses remain compliant with differing laws and legislation internationally. Take a look at what we can do to help your expanding business:

  • Employment Contracts
  • Payroll Processing
  • Handling of payments (salaries)
  • Annual declarations (lodging, apprenticeship & training taxes for concerned companies)
  • Relations with social bodies
  • Regulatory Compliance
  • Tax and Labor Law Consulting
  • Assisting in payroll audit (or payroll department audit)
  • Handling of confidential payroll
  • Assistance in company restructuring plan
  • Assistance in implementation of procedures
  • Assistance with start-up (in link with lawyers)

Stay Compliant with USA Payroll

FMP Global will ensure you remain compliant throughout all stages of your expansion. We’ll support you along every step of the way, so you can get on with the every day.

Start your International Expansion Today