The United States operates a strict employer-sponsored visa system. Employers must sponsor foreign nationals for employment visas such as H-1B (skilled workers) or L-1 (intra-company transfers). Each visa type has specific eligibility, prevailing wage, and documentation requirements.Employers must verify right-to-work status via Form I-9, regardless of citizenship.

U.S. payroll operates at three levels: federal, state, and local — with each layer adding unique requirements.

• Federal Components:
  
  • Income Tax (withheld based on IRS tax tables)
  • Social Security (6.2%)
  • Medicare (1.45%)
  • Federal Unemployment (FUTA)
• State Components:
  
  • Income Tax (if applicable)
  • State Unemployment Insurance (SUI)
  • Disability & Paid Family Leave (in select states like CA, NY, NJ)
• Local Components:
  
  • Some cities (e.g., New York, San Francisco) impose additional tax or leave obligations.
• Pay Frequency:Bi-weekly or semi-monthly is most common. Each state defines its own minimum frequency.
• Employee Payslips:Most states require itemized paystubs. Electronic payslips are standard but may require employee consent.

Unlike many countries, written employment contracts are not mandatory in most U.S. jurisdictions. The U.S. follows an “employment-at-will” model, meaning either party may terminate the employment relationship at any time unless otherwise specified.

However, best practice includes:

• Offer letters outlining compensation, benefits, and expectations
• Acknowledgment of policies (handbook, code of conduct)
• Confidentiality and IP agreements for certain roles

While the U.S. has no federally mandated paid leave, employers often offer competitive benefit packages to attract and retain talent:

• Paid Time Off (PTO): No federal mandate; typical packages offer 10–20 days annually
• Sick Leave: Mandated only in certain states and cities
• Public Holidays: Not mandatory, but most employers observe 6–10 per year
• Health Insurance: Not required by law for small employers, but widely expected
• 401(k): Retirement savings plans often offered with employer match
• Family Leave: The Family and Medical Leave Act (FMLA) provides unpaid job-protected leave for eligible employees; some states provide paid leave‍

• W-2 (issued to employees annually)
• 1099 (for contractors)
• 941 (quarterly federal tax return)
• State-specific returns and unemployment filings