Employee benefits
in USA.

SALARY PAYMENT IN United States Dollar (USD, $)

CONTRACT LANGUAGES English

PAYROLL TAX Varies per state

PAYROLL CYCLE Bi-weekly or weekly

TIME TO HIRE 12 hours

Get Started

Horizons-owned entity with local country experts in Seoul.

We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

Hire and pay talents
with Horizons in
180+ countries

Get started

United States

Healthcare in USA

At the federal level, the basic public health infrastructure is funded through Medicare, the United States national health insurance program. Under the FICA, employers and employees pay a mandatory payroll tax of 3.5% (1.45% each) to Medicare. There is an additional Medicare contribution of 0.9% for employees who earn more than $200,000.

Employer-sponsored benefits usually include private healthcare insurance as part of employee benefits packages. There’s no legal requirement for employers to offer private health insurance to their employees, but almost all do. Employee benefits packages vary between employers, roles and circumstances of the employee; some employers cover 100% of the costs of health insurance premiums whilst other split the cost with the employee. In addition, there are various financial assistance programs available to help individuals with medical expenses. They provide an essential safety net, ensuring that healthcare remains accessible and affordable for a wider range of the population.

Pensions in USA

The state pension fund in the USA is funded through the FICA, a mandatory payroll tax that employers and employees contribute to. The contribution totals 12.4% and is split equally between employer and employee, i.e. 6.2% each. Contributions are only paid on the first $160,200 of income.

Retirement age in the US varies depending on the year of birth. Those born before 1960 receive retirement benefits from the age of 65, and those born after 1960 can begin receiving retirement benefits at 67.

Disability in USA

Disability insurance is funded through the FICA as part of the Social Security or Old-Age, Survivors, and Disability Insurance (OASDI) program.

People who cannot work because of illness or injury may be eligible to claim disability benefits through two federal social security programs: Social Security Disability Insurance (SSDI) and Supplemental Security Insurance (SSI).

Unemployment in USA

Unemployment benefits are funded by the Federal Unemployment Tax Act (FUTA). Only employers pay FUTA tax at a rate of 6% on the first $7,000 of an employee’s wages.

Employers are entitled to a credit reduction against their FUTA tax obligations based on the amounts they pay to state unemployment funds – the full credit reduction amounts to 5.6%, which brings the FUTA tax contribution down to a minimum of 0.6%.

Hiring in USA, Made Easy

Your business can easily hire employees in USA without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What employee benefits are mandatory in USA?

Mandatory employee benefits include employer contributions to the USA’s social security system otherwise known as the OASDI program. The US’s social security system is an insurance scheme that provides for old-age, survivors, and disabilities.

What employee benefits does Horizons cover in USA?

At Horizons we offer a number of employer-sponsored benefits to US-based employees. These include private medical insurance via an affordable health plan and private retirement solutions plans.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)