Jump to

United States

Navigate the complexities of employment laws in U.S. effortlessly—partner with Lerio for reliable HR guidance.

Hiring in United States at a glance

Currency

$ / USD

Working Hours

40 hours / week

Public Holidays

7 holidays / year

Payment Frequency allowed
  • Standard payment frequency is monthly and bimonthly.
  • By law, there is no required frequency of payment.
Local Language

English

Population

340M

Minimum Salary

$7.25 / hour

Tax Year

1st Jan – 31st Dec

Employment Tax

Employee Taxes
  • Social security: 6.20%
  • Medicare: 1.45%

Income tax – employees pay both federal tax and state tax. Federal tax is calculated based on household and income. Each state sets their own tax, see table below for federal tax.

Employer Taxes

Varies largely between states.

  • Social security:6.2%, capped at $9 932.40
  • Medicare:1.45%
  • Federal unemployment insurance:0.06%
  • State unemployment insurance:1% – 4% with caps determined per state
  • Workers compensation insurance:0.25% – 0.30%
Employee Tax rates (if any)

Federal Income Tax

Single Married (double income) Head of household (single income) Tax Rate (%)
$0 - $11 600 $0 - $23 200 $0 - $16 550 10%
$11 601 - $47 150 $ 22 001 - $94 300 $16 551 - $63 100 12%
$47 151 - $100 525 $94 301 - $201 050 $63 101 - $100 500 22%
$100 526 - $191 150 $201 051 - $383 900 $100 501 - $191 950 24%
$191 151 - $243 725 $383 901 - $487 450 $191 951 - $243 700 32%
$243 726 - $609 350 $487 451 - $731 200 $243 701 - $609 350 35%
$609 351 + $731 201 + $609 351 + 37%

Employer of Record
in United States

Fulfilling the role of the authorized employer, an Employer of Record is charged with ensuring compliance with all legal requirements pertaining to employment in Australia. This encompasses tasks such as managing payroll systems, ensuring tax conformity, and providing employment contracts as stipulated by labor regulations.

Employer of
Record Process

  • Company
  • Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:

    • Full legal name of prospective employee
    • Employee contact details
    • Employee nationality and residency status
    • Proposed start date
    • Right to work status
    • Job title
    • Working hours
    • Job description and deliverables
    • Salary information
    • Benefit information
    • Intellectual property and confidentiality agreement
    • Terms of termination (e.g. notice period)
    • Probation period
    • EMployee bank details
    • All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)

  • Lerio
  • Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.

  • Employee
  • Signs employment agreement and submits required documents.

  • Employee
  • Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.

  • Lerio
  • Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.

    Lerio provides an invoice and statement to the company for each month.

  • Company
  • Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.

Umbrella Process

  • Company
  • Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:

    • Full legal name of prospective employee
    • Employee contact details
    • Employee nationality and residency status
    • Proposed start date
    • Right to work status
    • Job title
    • Working hours
    • Job description and deliverables
    • Salary information
    • Benefit information
    • Intellectual property and confidentiality agreement
    • Terms of termination (e.g. notice period)
    • Probation period
    • EMployee bank details
    • All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)

  • Lerio
  • Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.

  • Employee
  • Signs employment agreement and submits required documents.

  • Employee
  • Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.

  • Lerio
  • Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.

    Lerio provides an invoice and statement to the company for each month.

  • Company
  • Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.

Employee Benefits

  • Social security
  • Medicare
  • Unemployment Insurance
  • Workers’ Compensation

Non-mandatory
Employee Benefits

  • Medial insurance
  • Pension
  • Annual bonus
  • Time off

Employee Rights
and Protections

  • Varies state by state
  • Protection from bullying, discrimination and sexual harassment
  • Equal pay for equal work
  • A safe and healthy work environment free from risk
  • Right to join and belong to a labour union

Leave

Paid time off

No federal provision

Sick leave

12 weeks unpaid leave for serious illness if employed for more than 1 year, and the company employs more than 50 people in the employee’s work location.

Maternity leave

12 weeks unpaid leave. Applicable if employed for more than 1 year, and the company employs more than 50 people in the employee’s work location.

Paternity leave

No federal provision

Parental leave (applicable to adoption as well)

12 weeks of unpaid leave in the first year of the child’s life Applicable if employed for more than 1 year, and the company employs more than 50 people in the employee’s work location.

Notice Period

No requirement from either party to give notice but standard is 2 weeks

Probation

Due to immediate dismissals and resignations being allowed, probation periods aren’t largely used.

What is a work permit in the United States?

Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents – and the US is one of them. Essentially all terms are referencing documents that prove someone has been given the legal right to work and live in the country.

In the US, the “work permit” required to legally live and work legally is referred to as a work visa, and it’s the only document required. Prior to applying for a work visa, additional documents from the US government are however required. These include:

  • Labour Certificate
  • Approved petition for worker
  • Permanent visas also require getting a social security card upon arrival

Who needs a work permit in the United States?

The US requires everyone who is not a citizen or a permanent resident to go through a process of obtaining a work visa. Though most countries belong to a group of countries who have a free movement or similar arrangement, and/or bilateral agreements with another country which allow citizens from some other countries to legally work and live there, the US is not one of those. 

There are agreements with Canada, Mexico, Australia, Guam, Bermuda, Micronesia, the Marshall Islands and Northern Mariana Islands which allows reduced requirements for certain work visas. 

Countries who are a part of the visa waiver program are also allowed to enter the US for 90 days to visit or 

How long does it take to get a work permit in the United States?

It’s extremely difficult to give an indication of a general time for work permits to be processed. Each step is dependent on the visa and each country has its own processing periods. The US government website does not indicate an expected processing time except for a temporary work visas (21 working days) but this is only for the visa step – not the preceding steps.

According to other sources, the whole process could take anywhere up to a year though some claim longer.

Types of work visas in the United States

Permanent workers

Permanent work visas are available for a variety of individuals who meet the below requirements. These are all employment-based visas and are subject to an annual quota. Once the quota of visas available is reached, visas are no longer extended. Permanent work visas are referred to as Immigrant work visas as they are allowing a full immigration status rather than a temporary stay.

https://www.uscis.gov/working-in-the-united-states/permanent-workers

First Preference EB-1 – no

First Preference EB-1 visas are intended for those in the sciences, arts, education, business and, multinational executives and managers who have exceptional experience and qualifications.

Eligibility:
There are 3 categories with their own set of criteria:

Extraordinary Ability: Needs to meet at least 3 of the 10 criteria specified for this category specifically or must have an exceptional one time achievement such as an olympic medal, Pulitzer prize, etc.)

  • Offer of employment from a US employer
  • Nationally or internationally recognised awards or prize for excellence
  • Membership of an association which have requirements for outstanding achievements to join
  • Published material about the applicant in a professional, trade or major media publications
  • The applicant authorised material in a professional, trade, academic or major media publications
  • Invited participation in a panel or individual activity to judge work of others
  • Contributions to scientific, academic, artistic, athletic or business-related with major significance
  • Leading roles in distinguished organisations
  • Displays of artistic works in exhibitions and shows
  • High earning in relation to others in the field
  • Commercial success in the arts

Outstanding professors and researchers: Needs to meet 2 of the 6 general criteria below and have an offer of employment for at least three years from a US employer.

  • Offer of employment from a US employer
  • Nationally or internationally recognised awards or prize for outstanding acheivement
  • Membership of an association which have requirements for outstanding achievements to join
  • Published material about the applicant in a professional publication in academia
  • Participation in a panel or individually to judge others in a related academic field 
  • Contributions of original scientific or academic research
  • Authoring academic books or articles (in academic journals with international circulation)

Multinational managers or employers: Must meet all of these criteria

  • Offer from a US company 
    • Company must be in operations for 1 year or more
    • Company must have a relationship with the applicant’s current employer
  • Be employed abroad for at least 1 year in the last 3 years

Second Preference EB-2 – yes unless labour certification

Second Preference EB-2 visas are similarly available to those who have exceptional experience or advanced degrees but only in the sciences, arts and business. This visa does have a more extensive process to obtain.

Eligibility 

There are 2 categories with their own set of criteria:

Advanced degree:

  • Offer from a US employer
  • Job must require the advanced degree the applicant has
  • Advanced degree 
  • 5 years of experience post graduation in the field of the degree

Exceptional ability: Must meet 3 of these

  • Advanced qualification or similar award from a college, school, university or other institution related to the field 
  • 10 years of experience in the specific field
  • Licence to practise the profession or certification of the profession or occupation
  • Membership in a professional association 
  • Recognition of applicant’s achievements and significant contributions from the industry, peers, government entitled, or professional or business organisations 
  • Other evidence may be considered on a case-by-case basis

Third Preference EB-3 – yes

Fourth Preference EB-3 visas are for professionals and skilled workers for specific job classifications. 

Eligibility 

There are 3 categories in this visa option with individual requirements: 

Skilled workers: 

  • Full-time offer of employment from a US company
  • 2 years of experience, education or training that meets the requirements of the labour certification (see below)
  • A labour shortage must exist in this field and the role couldn’t be filled locally 

Professionals 

  • Full-time offer of employment from a US company 
  • Degree in the relevant field 
  • A labour shortage must exist in this field and the role couldn’t be filled locally 
  • Meet the requirements on the labour certification 

Unskilled workers

  •  Permanent, full-time offer of employment from a US company 
  • Job cannot be temporary or seasonal 
  • A labour shortage must exist in this field and the role couldn’t be filled locally 
  • Ability to perform the duties of the role
  • Meet the requirements on the labour certification

Other permanent visas: 

Available for religious workers, retired employees of international organisations and investors.

Temporary work visas

Temporary visas are also available for a variety of reasons. These are referred to as non-immigrant visas as they will not allow indefinite stays in the US. 

https://www.uscis.gov/working-in-the-united-states/temporary-nonimmigrant-workers

H-1B

The H-1B visa is for workers in a specialised occupation 

Eligibility

There are 3 categories for which there are individual criteria

H-1B Specialty Occupations

  • Offer of employment from a US company 
  • The occupation must require: 
    • Theoretical or practical body or highly specialised knowledge 
    • Bachelors of higher degree in the specialised field 
  • The offer of employment must be for a role that meets the following:
    • Bachelor of higher degree
    • The degree must also be listed as required for similar roles in the same industry or the role must be so complex or unique that only someone with a degree would be able to perform the duties
    • The company has also required degrees for this specific role for other employees
  • The applicant must: 
    • Holds a bachelors or higher degree
    • Hold an unrestricted license, registration or certification to practice the speciality occupation and must be engaged therein immediately upon arrival 

H-1B Department of Defence (DOD) Researcher and Development Project Worker

  • Offer to work in a cooperative research and development project or coproduct project for the DOD
  • The role must require a bachelors or higher degree
  • Bachelor or higher degree
  • The degree must also be listed as required for similar roles in the same industry or the role must be so complex or unique that only someone with a degree would be able to perform the duties
  • The company has also required degrees for this specific role for other employees
  • Hold an unrestricted license, registration or certification to practice the speciality occupation and must be engaged therein immediately upon arrival 
  • Have education, specialised training or experience relevant to the project

H-2B

The H-1B visa is for workers to take up roles that cannot be filled locally but do not need to be classified as skilled or professional or for individuals 

  • Offer of employment 
  • There are not enough US citizens who want, are qualified or are available to fill the role 
  • The role must be temporary
    • One time occurrence: 
      • Role’s need is due to a short-term project or event
      • The company has not needed this role previously and won’t in the near future
    • Seasonal work:
      • Tied to a season or event of a recurring nature 
    • Peak need:
      • The company regularly employees people to perform this role 
      • Needs to supplement the team for a short-term demand 
      • The role won’t require working in day-to-day operations 
    • Intermittent need:
      • Company has not employed permanent or full-time employees to perform these duties 
      • Occasionally or intermittent need for the duties for short periods of time
  • Must be a citizen of 1 of the 88 countries listed by the government

O-1

The O-1 visa is intended for those with extraordinary ability or achievement in science, education, business athletics, art, motion pictures or television.

Eligibility 

This visa is also divided into 3 categories but the requirements are similar for each category. The categories are:

O-1A: Individuals with an extraordinary ability in the sciences, education, business, or athletics (not including the arts, motion pictures or television industry);

O-1B: Individuals with an extraordinary ability in the arts or extraordinary achievement in motion picture or television industry. 

  • Demonstrated extraordinary ability of national or international acclaim 
  • Continue the same work in this field 
  • Skill level must be recognised significantly above others in the same field 

Specific industries: 

Additional temporary visas are available for those in the following fields: 

  • Agriculture
  • Fashion modelling 
  • Religion 
  • Artist and entertainment 
  • Athletes
  • Nurses
  • STEM (science, technology, engineering and mathematics) 

Other visas

In addition, visas are available for students, graduates and  entrepreneurs

Application process in the United States

Request prevailing wage

A prevailing wage indicates the trend of what individuals are paid in specific industries for specific roles.

Must be done by employer

  • Request the prevailing wage with the Department of Labour online (can be done by mail but it is discouraged)
  • Ensure the offer made to the candidate is inline with the prevailing wage

Alternatively a prevailing wage can be confirmed through independent surveys by authoritative sources or other legitimate sources of information.

Apply for labour certification

Not applicable to all visa types, see below for your specific visa requirements. Must be done by the employer.

  • Ensure the role is classified by Department of Labour as eligible
  • If applicable, file a notice of filing and ensure recruitment process was conducted in line with requirements
  • Submit application
  • For permanent work visas:
    • Submit the PERM application online or via post
      For temporary work visas:
    • Submit an application and job order or for a temporary employment certification, depending on visa type, with the Chicago National Processing Center (NPC). See which is required for which here.
  •  Application status and outcome can be found on the online portal
  • Upon approval a digital Labour Certification will be provided

File petition for a foreign worker

Employers file petitions in most cases, however in a few select cases an applicant can file this themselves. This is not necessary for all visa types. See specific requirements per visa here.

  • For temporary work visas
  • File a petition for a nonimmigrant worker (I-129) on the Citizenship and Immigration website with supporting documentation
  • Outcome of the petition will be sent directly to the employer, referred to as a Notion of Action (Form I-797)
  • For permanent work visas
    • File a petition for an immigrant worker (I-140), with supporting documents
    • Status of application and outcome will be found on the online portal. It will also be sent to the National Visa Centre.

Collect documents

Ensure to have enough time to collect documents.

  • Depending on your country, certain documents may take time to request from either police or from home affairs or a similar government entity.
  • Complete a medical exam and ensure vaccinations are up to date, prior to your embassy or consulate appointment

Apply for a visa

Visa applications are done by the visa applicant at their local US embassy or consulate.

Permanent/Immigration visa

  • Once the National Visa Centre receives the petition approval, you are added to a waiting list for an appointment
  • The Visa Bulletin needs to be checked by the applicant to see when their appointment will be
  • Closer to the appointment the NVC will request:
    • The application fee to be paid
    • Completion of Form DS-261
    • Your address and choice of embassy and consulate
    • Supporting documents
  • The visa appointment will be confirmed with the embassy or consulate
  • The NVC sends all the documents and the petition outcome to the embassy and consulate.
  • The applicant needs to take any documents that weren’t already sent and their original document to the appointment. At the appointment:
    • A short interview will be done
    • Biometric information will be recorded

Temporary/Non-immigrant Visa

Process to apply may vary by country.

  • The embassy will already have the Notice of Action (Form I-797)
  • Apply for a visa on your local embassy or consulate website by submitting a DS-160 form. To complete the online application you will be asked to upload a photo and may need to submit additional documents.
  • Schedule an interview. After the application is submitted, available interview slots will be shown and needs to be booked
  • Pay the visa application fee
  • The applicant needs to all supporting documents with them to the interview. At the interview:
    • A short interview will be done
    • Biometric information will be recorded

Receive Visa

  • Once approved, the visa will be placed in the passport and returned to the applicant
  • Permanent visa only:
  • With the passport, a sealed envelope with all the provided documents will be given. This envelope should not be opened. This envelope must accompany your passport at US immigration when travelling and should only be opened by them.
  • Pay the Immigration fee prior to travelling to the US

After arrival (Permanent/immigration visa only)

  • A social security card, based on what was selected on the application will either be sent to the US address on the application form within 6 weeks of arrival. If it was indicated not to process the social security card automatically, this must be applied for.
  • Review any potential next steps here related to tax and other residence requirements.

What documents are required to apply for a work permit in the United States?

With the variety of visas available, note that each one may require additional documents

Labour certificate

  • Application for Temporary Employment Certification
  • PWD tracking number
  • Copy of the job order
  • Authorisation to act on the company behalf
  • Contact information for any recruiters or agencies worked with for this role
  • Additional supporting documents by visa type

Petition for worker

For visa specific documents, see here. General documents, include:

  • Supporting documents for the visa type such as proof of publications authored, prices won, etc.
  • Proof of qualifications
  • Proof od professional experience and skills
  • Proof that the role is relevant to their experience, qualifications and skills
  • If applicable, proof that the role could not be filled locally
  • Proof that the role classifies as required on the visa type (professional, skilled, etc.)
    If applicable, employment agreement
  • Proof of proposed salary

Visa application

Permanent (immigrant) visas

  • Passport passport and copy of passport valid for 6 months after the intended date of entry. Country-specific requirements apply
  • Immigrant Visa and Alien Registration Application (Form DS-260)
  • 2 photographs, according to requirements
  • Proof of funds or how applicant will support themselves
  • Completed medical exam forms (submitted directly from the medical examiner but advised to take a copy)
  • The following is referred to as “civil documents”
    • Original or certified copy of birth certificate
    • Clear criminal record or certified copies of court and prison records even if granted amnesty or a pardon. Required for every country lived in for 12 months or more
    • If applicable, original marriage and divorce certificates of every marriage
    • If applicable, military records

Temporary (non-immigrant) visas

  • Passport that is valid for at least 6 months after their intended stay. Country-specific agreements vary and allow exemptions
  • Visa application confirmation page (Form DS-160)
  • Photo, if the upload failed when you did the online application
  • If already paid, proof of application fee payment
  • Petition Receipt Number for the Petition for a Nonimmigrant Worker submitted by employer
  • Additional documents that are advisable to take to prove your intention to return after the specified time, such as:
    • Proof of address in current country for which there isn’t an intention to leave while away
    • Proof of family or partnerships that will motivate you to return
    • Documents that show your general financial situation
    • Documents that show any long-term plans