Do I Have to Provide Employee Benefits in the US?
Employers are expected to contribute towards employee benefits in the US, including their health insurance plans as it is not universally provided by the government.
This video talks through what percentage employers should contribute towards plans, and how using a US Employer of Record can save you sourcing quality healthcare plans.
Here are some common FAQs on employee benefits in the US.
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According to the Affordable Care Act (ACA), all full-time employees in the US (who work 30+ hours a week) are eligible for an employer-sponsored healthcare plan.
For employers with 50 or more full-time employees to comply with the ACA, they must offer health insurance that meets ACA-established minimum coverage and affordability requirements.
Employer-sponsored health coverage must also be available to the employees’ dependents.
If you do not offer health insurance to your US employees, you will have to pay a fee to the IRS per employee, per year.
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The US Bureau of Labor Statistics provides some insightful data on average employee contribution costs across the US:
Employee benefits for private industry workers averaged at $13.17 per hour worked (30% of employer contribution costs)
Life insurance was available to 57% of private industry workers via their employers in 2022.
Retirement and savings costs for private industry US workers averaged $1.36 per hour worked.
Offer Top Employee Benefits via PGC
Offering competitive employee benefits in the US is crucial for attracting and retaining talented workers, as it is often a deciding factor for job offers.
Through PGC you will be able to offer all your US employees an Affordable Care Act compliant medical plan, with three different health insurance medical plans, two different dental plans, as well as vision insurance.
Standard US employee benefits employers offer include:
Health insurance plans
Retirement plans (401(k))
Vision insurance
Dental plans
Commuter Benefits
Short and long term disability
Pharmacy RX
There is a minimum contribution to your employees' benefits in the US that you would have to provide each month.
PGC’s US Employer of Record service not only provides your employees with comprehensive benefits. We also manage payroll, and back office HR tasks, including administration and renewal of benefits, and provide your workers with a Workforce Experience Team.
How Long is Maternity Leave in the US?
In the US, there is no federal requirement for employers to provide paid parental leave to their employees, including paternal leave. Some states do require paid parental leave.
Maternity Leave in the US Varies per Business and State
In states that do not have such requirement, maternity leave is at an employer’s discretion and often seen as a benefit. This means that maternity leave duration in the US and requirements differs per state and business.
Maternity Leave in the US if you Have 50+ Employees
Unpaid, job-protected maternity leave is regulated by the Family and Medical Leave Act (FMLA) in the US at the federal level.
Under FMLA, eligible employees are entitled to take up to 12 weeks of unpaid, job-protected leave for:
The birth or placement of a child with the employee for adoption or foster care.
To care for a spouse, child, or parent with a serious health condition.
A serious health condition that makes the employee unable to work.
Reasons related to a family member’s service in the military.
Some states implement their own maternity leave laws with more benefits than the federal requirements.
Additionally, many US employers offer their own paid maternity leave policies or a longer duration entitlement as part of a benefits package to attract employees.
Communicate Your US Maternity Leave Policy
Overall, it's important to clearly communicate your US maternity leave policy in employment handbooks, review state regulations, and understand your rights under FMLA to determine the length and type of maternity leave your US employees are entitled to.
Or you could use a US employer of record to assist in your employment compliance when employing in the US.
Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.
Why is it Important to Comply With US Labor Laws?
There are three different layers of US labor laws you must comply with when employing someone in the US, as explained in this video.
US Labor Laws Differ Per Area
The three US labor laws you must comply with when employing someone in the US are:
Federal law
Federal law is determined by the federal government and is the overarching US labor laws that govern all 50 states in the United States. You must be aware of federal US labor law requirements when you hire US employees.
State specific laws
Each state has its own government who can set their own tax system and state labor laws. This means labor law will vary depending on the state your employee is operating in. Remember, there are 50 different states, which equates to 50 different US labor laws to track, on top of federal compliance.
Local/city laws
Each city or local jurisdiction may have its own labor laws you must follow when hiring employees in the US, in addition to federal and states laws.
For example, let's say you want to employ a worker in San Francisco. You will have to navigate a multi-dimensional tax and legal system:
US federal laws and taxes
The state of California’s laws and taxes
Local government laws and taxes of San Francisco
Navigate US Employment With PGC
It is important to complete research in the areas you are hiring in and keep track of employment laws which change frequently. A specialized US Employer of Record like PGC can help you maintain compliance at a federal, state, and local level when employing someone in the USA. Whether you’re new to US employment or want to hire in another state without the hassle, using an EOR can simplify and speed up the employment process.
Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.