EREditorial team · Updated 14 Oct 20268 min read16 providers compared12 sources
US$4,489 employer cost a month on your own payroll, US$50,000 salaryNot all-in: what it leaves out is under the cost table.
≈8% federal employer taxes on top of salary
US$4,948 the same hire through an EOR, a month, an example with the median published fee
2 employer registrations before the first pay run
On your own US payroll the employer pays Social Security, Medicare and federal unemployment tax (FUTA), and state taxes come on top. A US$50,000 employee costs about US$4,500 a month before state levies.
Short answer
Before the first pay run the company needs an employer identification number (EIN) and its state unemployment tax set up.
Withheld taxes go to the IRS by electronic transfer, and Form 941 reports them each quarter.
FUTA is 6.0% on the first $7,000 of each employee's wages, or 0.6% with the full state credit.
On your own payroll a US$50,000 employee costs about US$4,500 a month, counting federal employer taxes only.
On this page
What comes before the first US payroll
The order runs from the state to the IRS and back to the state. A corporation or LLC is formed with a state’s secretary of state first, and only then applies for its employer identification number.[1] The set-up steps show both.
Unemployment tax ties the two levels together. Most employers owe state unemployment tax as well as FUTA, and state law sets the state rate.[2] FUTA is 6.0% on the first $7,000 of each employee’s wages, and paying into the state fund earns a credit of up to 5.4%, which brings it to 0.6%.[3] The full credit needs the state tax paid in full and on time, in a state that is not a credit reduction state.[4] The 0.6% in the cost table assumes it.
Each hire then brings its own forms: Form I-9, Form W-4 and a report to the state new-hire registry, all set out under payroll obligations.
Running payroll month to month
Withheld income tax and Social Security and Medicare go to the IRS by electronic transfer on a monthly or semiweekly schedule, fixed before each year.[5] Social Security stops once an employee’s earnings reach the wage base, $184,500 for 2026, while Medicare has no limit.[6]
A company with its own entity can hand payroll and tax reporting to a professional employer organization (PEO), but it generally stays responsible for the taxes unless the PEO is certified by the IRS.[4] PEO providers are in the PEO catalog, and payroll providers are listed below. The comparison of one hire on your payroll and through an EOR sets the two monthly costs side by side.
Registering as an employer
With your own entity, these steps run one after another before the first payroll.
Free from the IRS. The online application, for organisations formed in the United States, issues the EIN at once when approved; a business organised abroad can also apply by phone, fax or mail on Form SS-4.
Employer registrations
EIN for federal returns and deposits
A valid employer identification number is required when an employment tax return is filed or a deposit is made.[5]
State unemployment insurance
Most employers pay state as well as federal unemployment tax; state law sets the rate, and the state workforce agency gives the exact requirements.[4][2]
Running payroll: deadlines and filings
Each new employee completes Form W-4, and the employer withholds federal income tax from every wage payment using it and the IRS tables in Publication 15-T. State and local income tax rules are separate.[4][7]
Federal income tax withheld and Social Security and Medicare taxes, paid by electronic funds transfer on a monthly or semiweekly schedule set before each year.
FUTA (after the maximum state credit, first $7,000 of wages)[3][4]
0.6%
4
Total to employer
4,489
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.
Global payroll providers
All 14 global payroll providers we score: those working in United States first, then the rest, 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
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
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
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
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
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
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
4.2Our score 4.2 of 10Limited dataOur global payroll score
Global payroll price
Custom quote
ServicesEOR · Payouts · Contractors · Payroll
Best for
Startups, SMBs, agencies and enterprises: the segments Remozo names for its contractor product
Not for
Buyers whose security review asks for SOC 2 or ISO 27001 held by Remozo itself
Top pro
Contractor payouts claimed in 190+ countries; 98 are listed one by one in Remozo's help centre
Top con
Contractor plan from 3% per payout: for contractor payouts, 2 of the 6 other percentage prices we compare are lower and 1 the same. The contractor page says from 1.5%, which we do not score
All 4 PEO providers we score: those working in United States first, then the rest, each by our PEO score. Working in United States: 4 (3 by their PEO coverage list, the rest inferred from their EOR coverage). How we score
One hire on US$50,000 a year, through your own entity and through an EOR, from the figures on this page and the EOR page. The own-entity cost leaves out what running the entity costs, so the two columns are not like for like.
United States: own entity and EOR for one hire
Compared
Own entity
Employer of Record
Before the first hire
2 set-up and registration steps
No entity: the EOR’s entity employs
Employer cost a month, before any provider fee
US$4,489
US$4,489
Provider fee a month
–
US$459, median published fee (17 providers)
Example total a month, with the median published fee
US$4,489
US$4,948
At the median published fee an EOR adds US$459 a month per person, with no entity to set up.
Neither figure is all-in: both leave out the costs named under the cost table.
EOR in United States:Allowed, with limits[4][11][12]
6.0% on the first $7,000 paid to each employee in the year. Employers who pay into state unemployment funds can take a credit of up to 5.4%, which brings the rate to 0.6% at the maximum.
What is the Social Security wage base for 2026?
$184,500 of earnings. The employer's 6.2% stops at that amount, while the 1.45% Medicare tax has no wage limit.
When is Form 941 due?
At the end of the month that follows each quarter. An employer that deposited all its taxes on time gets 10 more calendar days.
Are pay stubs required in the US?
Not under federal law. The FLSA does not require pay stubs, but it does require accurate records of hours worked and wages paid. State rules vary.
Do state payroll taxes apply on top of federal ones?
Yes. State unemployment insurance, state payroll levies and workers' compensation come on top of the federal taxes and differ from state to state.
Works in United States
