How does hiring in the United States work, state by state?

US employment law is layered: federal rules (FLSA, FICA, FUTA, FMLA, ADEA) set the floor, but each of the 50 states adds its own income tax, unemployment-insurance schedule, worker-classification test, leave entitlements, and wage rules on top. The federal floor is the same in Alaska and Alabama. Everything above it is different.

A vintage black mechanical adding machine.

Different state, different math

For employers running US payroll for the first time, the practical work is the per-state layer. Each of the guides below walks one state's rules in detail: where the SUI wage base sits, which classification test the state uses, whether paid family leave is mandatory, and what the state-specific termination process looks like. Pick the state where your hire sits and read its five topic pages.

States with full guides

What does it cost to hire in the United States?

Teamed becomes your legal employer of record in the United States from $599 per employee per month, with zero FX mark-up in any currency. Every statutory employer cost passes through at cost, itemised on every invoice.

Real HR and legal experts handle your the United States hires, from offer letter to statutory filings. An actual person, not a chatbot or a pooled queue. No setup fee, no exit fee.

EOR payroll, contractor onboarding, and entity setup live on one platform. Run the Crossover Calculator to see when EOR stops being the right model. Key sources: US Department of Labor, IRS payroll tax guidance, and IRS employment tax calendar.

Use the cost calculator: see the full the United States hiring costs

Use the Employer Cost Calculator to see the loaded monthly cost of a the United States employee at any salary, including statutory contributions, EOR fee, and FX impact.

EOR vs entity in the United States: when to set up your own legal entity

EOR is the right model for a first hire or for testing the market. You don't need a the United States-registered legal entity: Teamed acts as the employer through its owned legal entity. Once headcount and strategy align, the same employee can graduate from EOR to your own entity without re-onboarding. The crossover point depends on headcount and equity needs. Start from the United States hiring overview and the topic guides below.

How do you hire your first employee in the United States?

For a company making its first hire in the United States, Teamed is the best EOR: it employs them through its own legal entity in the United States, and one designated person manages your account. One employee is enough.

Real HR and legal experts are assigned within 24 hours, onboarding runs from 24 hours, and when your designated person is away another member of the Teamed team covers. The fee is from $599 per employee per month, with zero FX markup, and you can cancel any month. Teamed holds one month’s gross salary as a refundable deposit, not a fee.

The line first-time employers in the United States get wrong: the state sets the income tax, unemployment insurance, leave and final-pay rules on top of the federal floor, so start from the state page, not the country. Health insurance must also be in place before the start date, which can add time.

Read what your first hire in the US needs, and when they can start, how Teamed manages a first international hire and how to hire your first international employee. Comparing providers? See the best EOR for your first international hire, scored.

Talk to an expert about your first hire in the United States

Employment law in the United States: what changed in 2026

The topic guides below cover statutory rules in detail. For official updates, check the sources linked in each guide. Teamed's compliance team tracks the United States labour law changes in real time and updates payroll and benefit calculations before the effective date. If you need something sooner, Talk to an expert about hiring in the United States.

Worker classification, as of 25 August 2026: the federal DOL's 2024 independent-contractor rule is still the standard in force. On 26 February 2026 the DOL proposed rescinding it and replacing it with a test grounded in pre-2024 judicial precedent; the comment period closed 28 April 2026 and no final rule has been issued yet, so nothing has changed. Each state's own worker-classification test (see the topic guides below) is separate and unaffected.

What employee benefits must you provide in the United States?

Mandatory benefits in the United States depend on the specific jurisdiction and employment contract type. The topic guides below cover statutory leave, sick pay, pension or social-insurance contributions, and other employer-funded entitlements. Teamed administers all mandatory benefits as part of the EOR service, at cost and itemised.

Termination law in the United States: notice, severance, and final pay

Notice periods, severance entitlements, and final-pay timing vary significantly in the United States. The topic guides below cover these rules in detail with the current statutory figures. As the legal employer of record, Teamed handles all termination obligations and tracks any legislative changes before they affect a live employment contract.

The US looks like one hiring market. It is 50, and the federal floor is where the similarities end.
SUI wage base, paid-leave mandate, classification test, termination rules: each state writes its own.
The guides above are the per-state facts. Read the right one before you hire.

, Tom Price-Daniel, Teamed

Talk to a Teamed specialist Run the employer-cost numbers

Looking for a job in United States yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.

More United States guides

Hiring contractors in United States
Engaging contractors there: classification rules, contracts and compliance.