Payroll in the US isn’t necessarily a walk in the park, but that isn’t for you to worry about.
Each of the 50 states are unique and have different laws - especially when it comes to hiring US employees and payroll.
Luckily, that’s our thing at PGC. By using our USA payroll services to pay your US employee, we take care of the nitty gritty US employment laws, local taxes and the worker's personal withholding status. So you can easily pay your US employees for everything they do in helping your business make it in the US.
Check out our video to learn more about our USA payroll services.
How our USA Payroll Services Work
Ok so, you know we’ve got it covered - but you want to know how?
To run USA Payroll Services, you’ve got to be set up with an unemployment account in every state that you operate, and all the local variables or agencies.
Essentially, if you had an employee that was moving states, as a business you would need to make sure that you were set up in that state to pay them, collect new tax forms. You need to make sure any previous local taxes are removed, and the new local taxes added.
Also, not forgetting that the employees need to be made aware of any changes!
If you use an Employer of Record like PGC, we can easily payroll a US employee in any state, no hassle.
Is there anything else?
When hiring US employees, you’ll also need your USA Payroll service to be set up in the state they are based in with worker's compensation insurance. It’s also extremely important that the worker's tax selection has been updated so that you are withholding properly.
So if you’re thinking of payrolling US employees alone, it is a lot! Especially if you consider managing all your US employees, whilst making moves for your grand American takeover… so by letting us take care of USA payroll, you can use your time to focus on the bigger things.
Use an Employer of Record or Do It Yourself?
At PGC, we don’t gatekeep so if you plan on taking on the 50 states alone, here’s a few things you should know for payroll.
USA payroll is risky business. According to IRS, 40% of small to mid-sized businesses face IRS penalties related to incorrect payroll filing by not using a USA Payroll Service provided by experts.
Mitigate your risk by using US employment experts instead. We’re set up in all 50 states to withhold employment and personal taxes and hold workers comp to take away your worries. Our workforce management tech allows us to process payroll within 24hrs, and enables employees to submit their timesheets at any time anywhere
Lastly, we adhere to all 50 states and payroll regulations, so no matter where your employees are we can pay them according to the employment requirements of that state.
Our USA Payroll Tech
So, you may think this sounds wonderful... but how will your employees be paid?
By using our USA Payroll Service, your employees will log on to our online tech platform ‘Precision’, where they can:
View their contract start and end date and other important details.
View their US employment documents
Submit their timesheets for approval
Sign updated employment paperwork, submit changes to their personal information such as address or direct deposit changes.
Precision is not only packed with benefits to streamline your employee’s experience…
As a business you can:
View automated data insights of workforce activity in real time.
Create and store unlimited standard and tailored reports, so your HR department has access to the data they need, stored in one place.
How Important is Employment Compliance?
We take US employment compliance very seriously, and it is the core of our solution.
When it comes to USA Payroll Services, we know how important it is to ensure tax is withheld properly and that workers receive the correct tax documents to avoid any claims.
We maintain payroll compliance in the US by reviewing all the state regulations or local regulations. This means we know when overtime is required in a certain state and what threshold in terms of salary is required for overtime.
We also adhere to how often a worker needs to be paid in each state. We have 22 years' experience under our belt providing USA payroll services under our employer of record solution, compliance is always at the forefront of our mind.
Set up your US Payroll Services Today
We're only focused on the US market and have been for over 22+ years, so have exact knowledge of how to compliantly process payroll there.
We have a highly skilled and competent payroll team Our dedicated payroll team ensures all payrolls are processed accurately and at speed. Ensuring thato your employees are paid on time, every time.
Our USA payroll service handles all the complexities of:
Setting up your US payroll process
Calculating your employee’s gross pay
Making tax withholdings based on your employee’s gross income and state in compliance with the IRS.
Withholding salary deductions -Unemployment, social security taxes, health benefits, and 401(k) contributions.
Including paid time off (PTO) and vacation pay.
Providing required paid sick leave in the jurisdiction. Paying US employees in accordance with the legally required schedule. Submitting year end payroll tax reports. Storing all employee's payroll records.
USA Payroll FAQs
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USA Payroll can be quite a complicated process. There are a lot of important requirements your business will need to set up to get payroll running in the US if you choose to do it alone. This includes:
Registering for an Employer Identification Number (EIN)
This is an important first step because the Employer Identification Number (EIN) is used to identify a business entity, separate to the business owner, even if you don’t have employees in the US yet. The only exception from registering for an EIN is you are sole proprietor with no employees, but you will need one if you have paid payroll taxes.
Registering your business for payroll in each state your hiring US employees
If you intend to do USA payroll alone, you must register your business for payroll within the state your employees are situated in. (If you will be hiring workers in multiple states this is an extremely lengthy process.)
Registering your business in a specific state is also required in order to secure licenses and business permits to run your business in the US. Businesses usually are required to complete two-state registrations, via:
1) Your Chosen State Department of Revenue
This is to register your taxes and sale taxes.
2) Your Chosen State Department of Labor
You register via your chosen state’s department of labor to cover your obligation for State Unemployment Insurance Coverage (SUI).
The Electronic Federal Tax Payment System (EFTPS)
It is advisable to enroll your company in the EFTPS, which helps keep track of all your fillings, even if you use a USA payroll service or accountant.
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To payroll an employee in the US, it is essential to set up an unemployment account in every state in which you operate, to be set up with all the local boroughs or agencies. Some of the common steps involved when you pay a US employee are:
Setting up your US payroll process
Reviewing and approving employee timesheets
Calculating your employee’s gross pay including any applicable overtime
Calculating and withholding income taxes according to the IRS
Working out other legally required salary deductions - social security taxes, 401(k) contributions, health benefits, federal unemployment tax, etc.
Paying US employees on time to the correct schedule
Submitting year-end payroll tax reports
Storing payroll records
Submitting final payrolls in line with state requirements
If you decide not to outsource USA payroll services, you will be fully responsible for all the above aspects of administrating USA payroll. As well as managing your US employees, you’ll have to collect new tax forms, making sure previous local taxes are removed and the new local taxes added.
When making these changes it is also important to make sure that the employees are aware
We get it, this is a lot.
Especially, if you’re new to the US market. Why not use our USA payroll services and employer of record solution so you know all employment compliance is sorted? No stress.
All you must do is manage your US employees; we take care of the complex back-office tasks based on our 22 years' experience payrolling US employees.
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Using an employer of record for USA Payroll services is key because it helps mitigate your risk.
We have over 22 years' experience helping international companies compliantly hire and payroll US employees.
As we are set up in all 50 states, we can withhold unemployment, hold workers comp insurance and take away the complexity of payrolling US employees.
We also adhere to all 50 states' payroll regulations, keeping on top of constant employment law updates, ensuring employees are engaged compliantly.
Depending on the state that the worker is in and the hourly rate that they receive or salary, we pay all of them based on the requirement for that state.
We can handle all legal payroll aspects, so you can focus on growing your business.
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If you become a client of PGC, you have full access to all our management fee features, including our workforce management platform, Precision.
Precision is great for payroll; you can log into the system and see the pay rates and salaries of your employees at any given time. Your employees can view all their employment documents and there.
If you have any employees on an hourly rate, you can also submit their timesheets for approval, and review any timecards because precision captures all of the time they work.
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Full employment compliance from 22+ years USA payroll expertise
We're only focused on the US and have been for over 22+ years so have the exact knowledge of how to compliantly process payroll there.
We have a very competent payroll team that ensure that all the payroll is processed on a timely basis, so employees receive accurate payments on time.
A US Relationship Manager for Employment Queries
A big part of our USA payroll service is managing your workforce, and that starts with the employment paperwork for the employee.
Once we receive information about the worker, your Relationship Manager reaches out to them directly with everything they need to know before they get started.
When you join PGC, you are assigned a US-based Relationship Manager. They not only help you with any US employment queries but is at hand to ensure all your employees receive a top-class employment service.
Your US employees paperwork, sorted
We provide your US employees with all their employment documents which are specific to the state and locality that they are located in. So, if they're in New York City, they may receive additional documents than if they were based in Florida.
Access to our workforce management tech
After that, your employees are able to sign all of their employment documents on Precision. Precision is also built in with secure file transfer, so you can rest assured your employees’ documents are protected.
All USA payroll services sorted
Then we expertly complete each legally required step in the payroll process in the US. Scroll up on this page to see what’s included.