Comprehensive Guide to Recruitment and Employment in the United States

I. In-depth Analysis of National and Economic Background

1. Geography and Strategic Position

The United States is located in the central part of North America, bordered by the Atlantic Ocean to the east, the Pacific Ocean to the west, Canada to the north, and Mexico to the south. As the world’s third most populous country, the U.S. consists of 50 states, the District of Columbia, and several overseas territories, with a total population of approximately 334.94 million. Its diverse geography and well-developed infrastructure provide a solid foundation for business activities.

2. Economic Overview

The U.S. economy, with a GDP of 19.85 trillion USD, is the largest in the world. Its economy is dominated by the service sector, with advanced technology, finance, healthcare, and manufacturing industries. According to the World Bank’s Ease of Doing Business report, the U.S. ranks 6th among 190 economies globally, known for its highly mature business environment, sound legal system, and innovation capabilities.

3. Cultural Diversity

American culture integrates various cultural elements from Native American, European, African, Asian, and Latin American origins, forming a unique “melting pot” characteristic. This diversity provides companies with rich opportunities for cross-cultural cooperation, helping to stimulate innovation and diverse perspectives.

II. Core Advantages and Challenges for Companies Expanding Abroad

1. Advantages Analysis

The United States boasts world-leading technology and service industries, well-developed infrastructure, and a high-quality workforce. Its legal system is sound, and the business environment is stable, providing reliable guarantees for foreign investment. Furthermore, American employees are generally well-educated and open to remote work and flexible work arrangements, which provides an advantage for companies in attracting talent amidst the “Great Resignation.”

2. Challenges and Countermeasures

Cultural differences are the primary challenge; the American workplace culture emphasizes individual rights, teamwork, and work flexibility, and companies need to adapt to these characteristics. Legal compliance requirements are strict, including anti-discrimination laws and minimum wage standards. Visa and immigration procedures are complex, requiring foreign employees to obtain H-1B and other work visas. Additionally, companies must register a legal entity in the U.S. or employ staff through an Employer of Record (EOR).

III. Employment Costs and Tax Structure

1. Employer Cost Composition

Employers must bear mandatory contributions ranging from 14.04% to 20.15% of the total wages, including:

• Social Security: Rate 6.2%, applicable to wages up to $168,600 (2024 standard).
• Medicare: Rate 1.45% to 2.35%, no income cap.
• Workers’ Compensation: Rate 0.25% to 0.3%, varies by industry and state.
• Federal Unemployment Tax (FUTA): Rate 0.6% (net).
• State Unemployment Insurance (SUI): Rate 0.39% to 5%, varies by state.

2. Employee Taxes and Fees

Employees must pay taxes and fees ranging from 17.65% to 45.98% of their total wages, including:

• Social Security: Rate 6.2%.
• Medicare: Rate 1.45%.
• Additional Medicare Tax: Rate 0.9% (for high-income earners).
• Federal Income Tax: Progressive tax rate, ranging from 10% to 37%.
• State Income Tax: Rates vary by state.

3. Tax Policy

Federal income tax uses a progressive tax system, with 2024 tax brackets as follows: for single filers, 10% for annual income $0-$11,600, and 37% for over $609,350; for married couples filing jointly, 10% for annual income $0-$23,200, and 37% for over $731,200.

IV. Employment Contracts and Working Hour System

1. Contract Types

U.S. law does not mandate written employment contracts, but it is advisable to clearly define job responsibilities, compensation, benefits, and termination clauses. Most states operate under the “at-will employment” principle (except Montana), allowing either party to terminate the employment relationship at any time.

2. Working Hours

Standard working hours are 40 hours per week. The Fair Labor Standards Act (FLSA) stipulates that work exceeding 40 hours should be compensated at 1.5 times the normal wage for overtime. States like California have stricter regulations, such as double pay for working over 12 hours a day or on the 7th consecutive day of work.

3. Probationary Period

Federal law does not mandate a probationary period, but employers can set their own evaluation periods. During this time, all labor laws, including minimum wage and anti-discrimination regulations, must still be observed.

V. Compensation, Benefits, and Bonus System

1. Salary Levels

The federal minimum wage is $7.25 per hour, but state standards vary, such as California at $16, Washington D.C. at $17, and New York at $15. Actual salaries vary significantly by industry, position, and region.

2. Statutory Benefits

• Annual Leave: No federal mandate, but most employers offer 10-20 days of paid time off.
• Sick Leave: The Family and Medical Leave Act (FMLA) provides eligible employees with 12 weeks of unpaid sick leave.
• Maternity/Paternity Leave: FMLA provides 12 weeks of unpaid leave.
• Public Holidays: 11 federal holidays, including New Year’s Day, Independence Day, Thanksgiving, etc.

3. Bonus System

No statutory bonus requirements, but common forms include:

• Performance Bonuses: Based on individual or team performance.
• Year-End Bonuses: Typically paid at the end of the year.
• Profit Sharing: Some companies offer profit-sharing plans.

VI. Work Visa Application Process

1. Visa Types

• H-1B Visa: Specialty occupation visa, valid for 3 years, renewable for another 3 years.
• L-1 Visa: Intracompany transferee visa.
• E Visa: Treaty trader/investor visa.
• O Visa: Individuals with extraordinary ability visa.
• EB Series: Employment-based immigrant visas.

2. Application Requirements

Requires employer sponsorship, providing a job offer, academic credentials, company documents, etc. The H-1B visa has an annual cap of 85,000, allocated through a lottery system.

3. Processing Time

Typically takes several months, so advance planning is recommended. Fees vary by visa type, including application fees, fraud prevention fees, etc.

VII. Dismissal and Severance Regulations

1. Dismissal Procedures

Most states practice “at-will employment,” allowing employers to dismiss employees without cause, but not based on protected characteristics such as race or gender.

2. Severance Pay

No federal mandate, but typically 1-2 months’ salary for each year of service. Upon dismissal, all earned wages and unused vacation compensation must be paid.

3. Unemployment Insurance

Dismissed employees can apply for state unemployment insurance, with the amount being a percentage of their original wages, payable for a maximum of 26 weeks.

Summary

The U.S. market attracts global businesses with its vast economic scale and mature business environment, but employment compliance requirements are complex. It is recommended to enter the market quickly through an Employer of Record model, focusing on technology, finance, and professional services, and fully leveraging the diverse talent advantages of the U.S.