Employee Leasing in the United States

• Expanding business activity into the United States through employee leasing allows clients to integrate into the world’s largest economy with great ease and flexibility.
• Employee leasing lets clients benefit from the large talent pool of the United States without setting up a local company.
• Employee leasing allows clients to focus on business decisions and let FMC Group take care of the administrative management of employees.

• Searching for candidates that perfectly match the client’s requirements;
• Negotiating and signing employment contracts;
• Paying all types of expenses and allowances;
• Paying taxes and social contributions in accordance with local regulations;
• Managing the payroll according to international standards;
• Monitoring paid leaves;
• Negotiating and implementing private health insurance if requested;
• Maintaining regular contact with clients regarding the management of their employees.

• The United States has the largest consumer market in the world with a GDP of over USD 20 trillion and a population of more than 329 million people. The amount of spending per household in the United States is the highest in the world. American households account for nearly one-third of global household consumption. Moreover, the wide range of free trade agreements signed by the United States further expands the size of the market that businesses present in the country can access.
• The United States consistently ranks among the best countries in the world in terms of its competitiveness and ease of doing business. According to the World Bank’s 2019 Doing Business index, the United States ranks sixth in the world. The country also ranked second worldwide in the World Economic Forum’s 2019 Global Competitiveness Index. This is mainly attributed to the American regulatory environment that is conducive to starting a business. The business culture in the United States also highly encourages entrepreneurship and competition.
• The workforce in the United States is very diverse, skilled, innovative, and productive. Vocational training is very popular among American youth and higher education institutions often offer flexible training options that help workers adapt their skills and knowledge to the constantly-changing needs of the labor market. More than 40% of adults in the United States have studied beyond high school, which contributes to the innovation that the American business environment is known for.
• As the most powerful country in the world, the United States enjoys unparalleled stability and is a global symbol of democracy. This stability, in addition to the transparency and fairness of the American legal system, allows all companies operating in the country, regardless of their origin, to compete in a fair environment.
• The United States Department of Commerce has launched a program, SelectUSA, that aims to promote the country as a leading investment destination and attract foreign investors. The program’s website contains detailed information about the advantages of investing in the United States.

Minimum Wage and Payroll

• The federal hourly minimum wage in the United States is set at USD 7.25. However, if the state’s minimum wage is higher, the employee is entitled to the latter.
• Each state has different regulations regarding payroll. While the majority of states require payment of wages every two weeks, some states allow payments once per month.

Social Contributions and Taxes*

Employer Contributions
Federal Insurance Contributions Act (FICA) Social Security	6.20%
FICA Medicare	1.45%
Federal Unemployment Tax Act (FUTA)	0.60% – 6.00%
Total	8.25% – 13.65%
Employee Contributions
FICA Social Security	6.20%
FICA Medicare	1.45%
FUTA additional tax (if the annual salary is over USD 200,000)	0.90%
Total	7.65% – 8.55%
Employee Income Tax
If the employee is single
Up to USD 10,275 per year	10.00%
Between USD 10,276 and USD 41,775	12.00%
Between USD 41,776 and USD 89,075	22.00%
Between USD 89,076 and USD 170,050	24.00%
Between USD 170,051 and USD 215,950	32.00%
Between USD 215,951 and USD 539,900	35.00%
From USD 539,901	37.00%
If the employee is married (based on the couple’s total income)
Up to USD 20,550 per year	10.00%
Between USD 20,551 and USD 83,550	12.00%
Between USD 83,551 and USD 178,150	22.00%
Between USD 178,151 and USD 340,100	24.00%
Between USD 340,101 and USD 431,900	32.00%
Between USD 431,901 and USD 647,850	35.00%
From USD 647,851	37.00%
If the employee is the head of a household
Up to USD 14,650 per year	10.00%
Between USD 14,651 and USD 55,900	12.00%
Between USD 55,901 and USD 89,050	22.00%
Between USD 89,051 and USD 170,050	24.00%
Between USD 170,051 and USD 215,950	32.00%
Between USD 215,951 and USD 539,900	35.00%
From USD 539,901	37.00%

* In addition to the federal social and fiscal contributions, some states have additional mandatory contributions.

Working Hours and Overtime

• Legal working hours in the United States are generally set at 40 hours per week.
• Overtime work is generally paid at a rate of 150% of the employee’s regular salary.
• Only a few states require employers to provide a full day of rest each week or to compensate them at an extra pay rate for work performed on the seventh consecutive day of work.

Vacation Days

• Employees in the United States don’t have the right to take a paid annual leave unless if it stipulated in the employment contract. It is not mandatory for employers to pay employees on holidays.
• The United States celebrates 11 federal public holidays, in addition to several holidays celebrated on a state level. The federal holidays are as follows:
  • New Year’s Day: January 1^st
  • Birthday of Martin Luther King, Jr.: Monday between January 15^th and January 21^st
  • Washington’s Birthday: Monday between February 15^th and February 21^st
  • Memorial Day: Monday between May 25^th and May 31^st
  • Juneteenth National Independence Day: June 19^th
  • Independence Day: July 4^th
  • Labor Day: Monday between September 1^st and September 7^th
  • Columbus Day: Monday between October 8^th and October 14^th
  • Veterans Day: November 11^th
  • Thanksgiving Day: Thursday between November 22^nd and November 28^th
  • Christmas Day: December 25^th

Parental Leave and Sick Leave

• Parental leaves and sick leaves in the United States fall within the Family Medical Leave Act (FMLA). According to the act, if employees have worked for the same employer for at least 1,250 hours over the past 12 months, they are entitled to take up to 12 weeks of unpaid leave per year to give birth, recover from an illness, or take care of a spouse or child.
• Some states have additional leaves that complement the FMLA leave.
• Some employers might include paid maternity leave or sick leave in employment contracts as an additional benefit.

Notice Period

• Under American federal law, there is no minimum notice period for both employees and employers. However, some employers might include a notice period in the employment contract.

Further Useful Information

• The website of the United States Department of Labor contains a list of all the legal texts regulating the employer-employee relationship in the country.