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Hiring in United States through an EOR (2026)
Here's what you need to know before you hire in United States: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.
8.1%Employer cost on top
$1,257Minimum wage / mo
0 daysPaid annual leave
Days, not monthsTime to hire via EOR
Last updated: July 12, 2026
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United States at a glance
The statutory facts that drive a hire in United States. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.
Pay & working time
| Minimum wageper month | $1,257Current | Eurostat · 2026 |
| Average wageper year | 86,977Aging | OECD · 2025 |
| Statutory work week | 40 hours/weekCurrent | Statutory working time (national labour law) · 2024 |
| Payroll cycle | biweeklyCurrent | Research desk · 2026 |
| 13th-month salary | noneCurrent | Research desk · 2026 |
Employer cost & tax
| Employer social securityof gross salary | 8.1%Aging | OECD · 2025 |
| Employee social securitywithheld from pay | 7.7%Aging | OECD · 2025 |
| Total tax wedge | 30%Aging | OECD · 2025 |
| Corporate tax rate | 25.5%Current | OECD · 2026 |
Termination
| Notice period | 0 weeksCurrent | World Bank Employing Workers / B-READY · 2019 |
| Severance pay | 0 weeksCurrent | World Bank Employing Workers / B-READY · 2019 |
| Employment protectionOECD EPL, scale 0–6 | 0.8Aging | OECD · 2025 |
Leave & time off
| Paid annual leave | 0 daysCurrent | Research desk · 2026 |
| Public holidays | 11 daysCurrent | Research desk · 2026 |
| Maternity leave | 0 weeksDated | OECD Family Database · 2024 |
| Paternity leave | 0 weeksCurrent | Research desk · 2026 |
| Parental leave | 0 weeksDated | OECD Family Database · 2024 |
Labour market
| Retirement age | 67Dated | OECD Pensions at a Glance · 2024 |
| Unemployment rate | 4.3%Current | OECD · 2026 |
| GDP per capita | $90,027Aging | World Bank Open Data · 2025 |
| Union density | 9.9%Dated | OECD/AIAS ICTWSS · 2024 |
| Collective bargaining coverage | 11.1%Dated | OECD/AIAS ICTWSS · 2024 |
Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since. Rows marked Research desk were filled by our research desk from primary sources where no institutional dataset publishes the figure; each carries the date it was checked and is re-verified on its refresh cycle.
What it costs to hire in United States
Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $87,000 a year actually costs you as the employer.
| Gross annual salary | $87,000 |
| Employer contributions≈ 8.1% of gross | + $7,036 |
| Total employment cost | $94,036 |
Your EOR handles the filings
Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.
Income tax in United States
The average effective income-tax rate is about . This is withheld from the employee's salary; an EOR runs the withholding and filing.
Employment-law essentials
The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in United States on your own.
Working time
Statutory work week40 hours/week
Pay & 13th salary
Minimum wage$1,257
Payroll cyclebiweekly
13th-month salarynone
Leave
Paid annual leave0 days
Public holidays11 days
Maternity leave0 weeks
Paternity leave0 weeks
Termination
Notice period0 weeks
Severance pay0 weeks
Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.
EOR vs. opening your own entity in United States
Use an EOR when…
You're hiring one to a handful of people in United States.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.
Choosing an EOR for United States
Providers with strong United States coverage onboard faster and carry less risk. A shortlist to start from:
EORRead Hire with Columbus review Visit website
EORMultiplier
From$459 / mo
EORPayoneer Workforce Management
From$199 / mo
EORRemoFirst
From$199 / mo
EORRemote
From$699 / mo
EORSignature Back Office Solutions
FromContact for pricing
Local players in United States
EOR and global-employment providers headquartered in United States:
United StatesMultiplier
New York
From$459 / mo
United StatesPayoneer Workforce Management
New York
From$199 / mo
United StatesRemoFirst
San Francisco
From$199 / mo
United StatesRemote
San Francisco
From$699 / mo
United StatesSignature Back Office Solutions
Rockwall
FromContact for pricing
United StatesABS Payroll & Accounting
Burbank
FromContact for pricing
Common questions about hiring in United States
Common questions about hiring in United States through an EOR.
Do I need a legal entity to hire someone in United States? +
No. An Employer of Record (EOR) already has a legal entity in United States and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in United States? +
On top of gross salary, employers in United States contribute roughly 8.1% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in United States? +
The statutory minimum wage in United States is $1,257. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in United States? +
Ending employment in United States generally requires a notice period of around 0 weeks and severance of about 0 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in United States? +
Employees in United States are entitled to 0 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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