Hiring in the United States: three routes and the federal floor
EREditorial team · Updated 14 Oct 202610 min read20 providers compared across EOR, COR and global payroll9 sources
US$4,948 employer cost a month, US$50,000 salary: example with the median published fee (17 providers)Not all-in: what it leaves out is under the cost table.
≈8% federal employer taxes on top of salary
US$7.25 federal minimum wage per hour
20 EOR providers covering the US
Federal law sets a thin floor for employing people in the United States, and each state adds its own rules on top. Federal employer taxes add ≈8% to a US$50,000 salary.
Short answer
An Employer of Record puts the person on the payroll of its own or a partner's US entity, so you need no US company.
Federal law requires no paid vacation, sick leave or holidays and no notice before an individual termination; state rules vary.
The federal minimum wage is US$7.25 an hour, and where a state sets a higher one, employers comply with both.
Through an EOR, an example with the median published fee puts a US$50,000 hire at about US$4,900 a month, before state payroll taxes.
Nobody: a services agreement with an independent contractor
Once the agreement is signed
On the terms of the agreement
Fits only when you have no right to direct how the contractor works.
In the United States the route also decides who applies two rulebooks, federal and state. The federal minimum wage is $7.25 an hour, and many states set their own higher floor, which employers must also follow.[1] Federal law asks for no paid vacation, sick leave or holidays, no severance and no notice before a termination or lay-off.[2] Plant closings and mass layoffs differ: employers with 100 or more employees give 60 calendar days’ written notice under the WARN Act.[3] With your own company both are yours; through an EOR its entity applies them. A contractor stays outside payroll only while your company has no right to direct the methods of the work (the test).[4]
What one hire costs
Monthly cost of an employee on US$50,000 a year, employed through an EOR: an example with the median published EOR fee.
Assumes: federal taxes only; state unemployment insurance and state rules vary.
Total to employer, a monthUS$4,948
Gross salaryUS$4,16784%
Employer contributionsUS$3227%
EOR feeUS$4599%
Percentages are shares of the total, not of salary.
What one hire costs
Item
Rate
USD / month
Gross salary
—
4,167
Social Security (employer, up to the wage base)[5][6]
FUTA (after the maximum state credit, first $7,000 of wages)[7][6]
0.6%
4
EOR fee: median published fee (17 providers)
—
459
Example total with the median published fee (17 providers)
4,948
Federal FUTA is 6.0% on the first $7,000 per employee; the 0.6% line assumes the maximum 5.4% credit, which needs state unemployment tax paid in full and on time in a state that is not a credit reduction state. State unemployment insurance, state payroll levies and workers' compensation are not modelled and vary by state. The additional 0.9% Medicare tax above $200,000 is withheld from the employee only.
37%[8]Federal income tax is progressive. For 2026 the top rate of 37% applies to single filers with income over $640,600 ($768,700 for married couples filing jointly). State and local income taxes are separate.
Registering as an employer
2 steps before the first payroll; what each involves and its source are on the payroll page.
Startups, growing companies and enterprises, the three segments Pebl writes a page for
Not for
Buyers who need a Contractor of Record: we list Pebl for contractor management, not COR
Top pro
Own SOC 2 Type 2 report and ISO/IEC 27001:2022 certificate, both on Pebl's security page
Top con
No live support channel named: Pebl lists its Alfie AI assistant, in-house experts and a Help Center; its pages say 24/7 support and do not say who answers
Lists EOR from $400 a month and notes that country prices may differ.
7.4Our score 7.4 of 10Limited dataOur EOR score
EOR price from
US$459per employee a month, billed annually
EOR countries160 claimed, 106 documented
Onboarding2–3 days
ServicesEOR · COR · Contractors · Payroll
Best for
Companies from startups to enterprises, going by Multiplier's segment pages
Not for
Buyers who need the deposit amount before signing: Multiplier calculates it per contract
Top pro
Own SOC 2 (Type I and II), SOC 3 and ISO 27001:2022 on its security page; the AWS certifications listed there are kept apart as the host's
Top con
The "from" prices assume an annual contract. Monthly EOR costs $499 on Core and $559 on Growth, about 11% of countries are priced differently, and compliance-mandated add-ons come on top of EOR and COR
Takes a refundable deposit equal to one month's salary for each employee.
7.4Our score 7.4 of 10Our EOR score
EOR price from
US$399per employee a month
EOR countries180 claimed, 157 documented
Onboarding2–5 days
Deposit1 month
Minimum termNone
ServicesEOR · Contractors · Payroll
Best for
Companies from startups to enterprises: Playroll has pages for each, and its case studies include startups under 100 staff and mid-market firms of 100 to 1,000
Not for
Contractors who want to be paid other than through Payoneer, the only payout route Playroll uses
Top pro
Its own country pages document EOR hiring in 151 countries + 6 territories, against a claim of 180+
Top con
A refundable deposit of one month's salary per EOR employee; the unused part comes back within two months of the last working day, or once claims are settled if that is later
Enterprise teams and small and growing businesses (SMEs), in RemotePass's own words
Not for
Buyers who must review EOR contract terms up front: no EOR agreement is public
Top pro
EOR from $349 per employee a month with tax included; 13 of 20 other EOR prices in dollars start higher
Top con
No EOR agreement is public: the Terms say EOR runs under a separate Consultant Agreement "available on the Site", which we did not find. The public legal documents are the Terms, the Privacy Policy and the Acceptable Use Policy
Its US page gives a price from $599 per employee a month.
6.6Our score 6.6 of 10Our EOR score
EOR price in United States from
US$599per employee a month
Entity in United States
Own entity
EOR countries180 claimed, 151 documented
Minimum termNone
ServicesEOR · Contractors
Best for
A first hire in one new country or a team spread over many, at a startup, mid-market firm or enterprise (G-P has a page for each)
Not for
Buyers who rank EOR providers mostly by the monthly fee
Top pro
G-P claims EOR in 180+ countries; its Globalpedia country guides document 148 countries + 3 territories one by one
Top con
EOR from $599 per employee a month; 15 of 20 other EOR prices in US dollars that we compare start lower; volume discounts are offered but not quantified
Startups, scaling companies and enterprises, the three groups Native Teams writes for
Not for
Buyers who want to read the EOR or COR agreement before talking to sales: the terms of service are the only contract text online
Top pro
EOR from $99 per employee a month, below all 20 other per-employee EOR prices in USD we compare
Top con
The terms of service are the only contract text online. The EOR and COR agreements are not published, and the terms say a separate signed contract takes precedence
Crypto and web3 teams paying contractors in stablecoins or crypto, a segment Rise names (startups, web3 startups, DAOs, global agencies)
Not for
Companies that need an EOR in countries beyond the US and the UK today
Top pro
Prices are published per head: $49 a contractor a month (discounts for startups and non-profits), $299 for Agent of Record, $399 an employee for EOR
Top con
EOR is documented in 2 countries (US, UK) against a claim of 90+. The parent, Rise Works, Inc., is on the GLEIF register; no own entity is documented in either country
Publishes no EOR list price; the fee comes as a quote.
5.9Our score 5.9 of 10Limited dataOur EOR score
EOR price
Custom quote
Entity in United States
Own entity
EOR countries80 claimed, 59 documented
ServicesEOR · Contractors · Payroll
Best for
Small businesses, including teams under 10 employees, startups and enterprises: the segments Rippling has pages for
Not for
Buyers who want to compare an EOR price before a sales call
Top pro
Contractor onboarding in 185+ countries and payments in 50+ local currencies, per its contractor page; 160 countries + 2 territories are documented here
Top con
No price for EOR, contractor management or global payroll: the pricing page asks for a custom quote
The $599 a month is a platform fee; benefits premiums and FX conversion are billed on top.
5.8Our score 5.8 of 10Our EOR score
EOR price in United States from
US$599per employee a month
Entity in United States
Own entity
EOR countries160 claimed, 146 documented
ServicesEOR · AOR
Best for
Enterprise-level companies, the audience Atlas's enterprise page names
Not for
Buyers who need a Contractor of Record: under Atlas's AOR the contract stays between the client and each contractor
Top pro
EOR in 141 countries + 5 territories documented here, against a claim of 160+ with wholly owned entities
Top con
At $599 per employee monthly, the EOR price is above 15 of the 20 other USD EOR prices we compare and equal to 4; local employer services, FX and benefits premiums are billed on top
The first Contractor of Record providers from the contractors page, which also covers the employee test, tax and how to pay.
The first 3 of 13 COR providers we score: those working in United States first, each by our COR score. Working in United States: 9 (1 by their COR coverage list, the rest inferred from their EOR coverage). How we score
The first global payroll providers from the payroll page, which also covers set-up, registrations and filings.
The first 3 of 14 global payroll providers we score: those working in United States first, each by our global payroll score. Working in United States: 13 (4 by their global payroll coverage list, the rest inferred from their EOR coverage). How we score
Enterprise teams and small and growing businesses (SMEs), in RemotePass's own words
Not for
Buyers who must review EOR contract terms up front: no EOR agreement is public
Top pro
EOR from $349 per employee a month with tax included; 13 of 20 other EOR prices in dollars start higher
Top con
No EOR agreement is public: the Terms say EOR runs under a separate Consultant Agreement "available on the Site", which we did not find. The public legal documents are the Terms, the Privacy Policy and the Acceptable Use Policy
The federal minimum wage is US$7.25 an hour. Many states set a higher rate, and an employer has to comply with both the federal and the state law.
Is paid vacation required by law in the US?
Not under federal law. The Fair Labor Standards Act does not require pay for vacations, sick leave or holidays. Paid leave rules at state level vary.
How much notice is required to let an employee go in the US?
None under federal law for an individual termination. The WARN Act's 60 calendar days of written notice covers plant closings and mass layoffs at employers with 100 or more employees, and state rules vary.
Can a foreign company hire in the US without a US entity?
Yes. An Employer of Record can employ the person through its US entity, or you can engage an independent contractor whose methods your company has no right to direct.
Sources
Minimum Wage, U.S. Department of Labor, Wage and Hour Division · checked 14 Oct 2026
