At INS Global, our experts work with you as a local provider for your Human Resources outsourcing and global expansion needs. By incorporating the many benefits of our tailored PEO (Professional Employer Organization) services in the United States, our experts can help you to hire better employees faster, all while avoiding the burdens of local regulations.
A PEO, commonly referred to as a global EOR (Employer of Record), works in the intended foreign market to assist you in your company’s international expansion efforts. Our PEO services will allow your company to outsource all of the necessary HR operations you need when entering the American market without creating a distinct legal entity in the country.
PEOs provide your company with the ability to enjoy competitive advantages that will increase your revenue and limit your potential risks. Our PEO in the United States can legally employ your staff, outsource your payroll, and handle your employee’s benefits and compensation packages. These services will save your company money and avoid wasted time due to misunderstanding of local regulations.
A PEO specialist can offer knowledge of local regulatory hurdles and up-to-date best practices that will keep your company in legal compliance.
When entering into a large, diverse market like the United States, a simple mistake in the HR department can lead to a disproportionate rate of fees that will hamper your company’s success. A PEO reduces these risks, decreasing market entry time and saving money.
A PEO will provide payroll outsourcing in America while being able to take care of recruitment and contractor management. When your company doesn‘t have to spend valuable time and resources on these issues, your team can focus on company growth.
Estimated time for Company Incorporation in America: 4-12 months
Estimated time to establish a PEO in America: 5 days
Anything your business needs is provided through one point of contact. This efficiency decreases the risks of misunderstandings and gives you personalized solutions.
Incorporating a company in America can be an intricate, complex, and time-consuming process, often requiring a deep understanding of local procedures and establishing a physical entity within the country. Our PEO in the United States will allow you to operate your business without having to go through numerous, confusing procedural steps to incorporate a new legal entity.
INS Global‘s PEO will manage employee recruiting and outsourcing needs in America in 4 steps:
Once you’ve decided to expand your company into the American market, choosing between a PEO and Employer of Record services can sometimes appear like a confusing, time-consuming process. It’s necessary to learn of the unique differences between these two services to make the best decision for your company.
There is a greater degree of distinction in how these two services and the workers they employ are treated in the USA than in most other countries. To avoid potential complications, it’s essential to consider which suits your requirements.
INS Global offers both PEO and EOR services in the USA. Contact us here to learn more about how these two services may differ and which is best for you.
The US Department of Labor (DOL) is the main source of over 180 federal laws regarding labor rights and regulations. With that being said, there are very few minimum requirements for contracts in the USA. For example, there are no requirements for written agreements or fixed/indefinite distinctions. Typically, the labor conditions can be agreed upon at the beginning of employment. However, as always, it’s recommended that employers create a written work agreement.
As the United States is a large country with many local regulations, each company should also consider the area they intend to enter for rules and laws that pertain to each distinct region.
The Fair Labor Standards Act created the standards for what wages and overtime pay rates should be for both private and public employment. This act requires that employers pay all covered employees who aren’t exempt at the rate of at least the federal minimum wage and overtime pay of 1.5 times their regular rate of pay.
If you are creating a private company in the United States, you should review the relevant information for the worker’s compensation program for the local area in which you will be operating. The US DOL does not have a role in administering or overseeing a state worker’s compensation program.
There are currently no requirements for paid annual or vacation leave in the USA. This is entirely up to an employee’s agreement with their employer.
There are no current paid sick or maternity/paternity leave requirements in the USA.
In certain conditions, employees may be able to be unpaid medical leave for up to 12 months.
Certain states have begun to enact paid leave legislation, so it’s suggested that employers be aware of the legislation that applies in the area in which they are operating.
In 2017, the US tax reform legislation moved the United States from a worldwide system of taxation to a territorial system of taxation. Additionally, these reforms also permanently reduced the CIT rate, which was 35% on resident corporations, to 21%.
American taxation of income earned by non-Americans will depend on the relationship of the income earned to the United States and work the non-American performed in the United States.
State and Local Income Taxes
CIT rates will vary depending on which state the company headquarters is in and will generally range from 1% to 12%, although some states have zero income tax.
The most common tax base is federal taxable income, which is decided by state regulations and provisions and is generally based on some of the following: tangible assets, rental expenses, sales, and payroll.
Many states are reforming their tax regulations, and for this reason, companies looking to expand into the American market should consider which state most suits their business needs.
In addition to taxes, employers and employees share contributions toward an employee’s social security and medicare costs. These are:
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.