Payroll Outsourcing in United States

• Seamless payroll processing and integration with HR
• A complete suite of cost-effective payroll services
• Remain compliant in a new market

The Right Payroll Outsourcing Model For The US Market

As a business looking to enter the US market, outsourced payroll services offer several advantages.

Cost Savings

The cost of outsourcing your payroll is lower than setting up an in-house payroll team from scratch at a new location. Meaning, you save more money in the long run and can remain stress-free.

Expertise

Payroll outsourcing providers have years of experience managing payroll functions. Meaning they can process payroll more efficiently without payroll errors and ensure your employees are paid accurately.

Legal Compliance

It is part of payroll professionals’ job to stay on top of all the local regulations governing businesses in a specific market. Hence, they can help you maintain regulatory compliance always.

Want all these benefits and a lot more? Let us at Edge help you establish your business and succeed in the US market. Our outsourced payroll solution is tried and recommended by several companies already running successfully in the US. Now you can be the next!

Rest assured, you will never face any payroll error or mismanagement by partnering with us!

Edge’s Outsourced Payroll Services In The US

Expertise and Flexibility

At Edge, our payroll experts understand the nitty-gritty details of the US market and know how to align them with your business needs. Processing payroll is a responsible task, especially for small businesses trying to build employee trust. Our global payroll processing plans can be tailored to your business size, industry, and needs.

We understand that there is no “one size fits all” strategy when it comes to outsourced payroll operations. So, as you grow, we can upscale your payroll needs, whether adding more employees or more dedicated account managers. We become an extended part of your core team rather than a payroll provider.

Competitive Pricing

The cost of outsourcing payroll plays a major role in choosing your payroll processing partner. Keeping this in mind, our payroll outsourcing services are designed to be highly affordable. We want to help you cut down on unnecessary expenditures so you can direct that wealth to grow your core business.

Commitment to Data Security

We ensure that your company’s employee data is safe in our hands. We do not share your sensitive data with anyone. All your payroll data is safely stored in our encrypted servers that can be accessed only by our experts at the time of payroll disbursement every month.

Real Testimonials

Several companies have had an amazing experience ever since outsourcing payroll to us. As they grew, most now leverage our integrated HR services and have upscaled their payroll demands.

A Walk Through Our Payroll Process

Your journey with us will begin with a quick onboarding process where we discuss and reach common ground about the payroll services you’d like to leverage. Then, we collect all the necessary information, such as employee details, job roles, salaries, length of service, employment contracts, etc.

Using this information, we then provide the following, which makes the core of our offering as your outsourced payroll provider:

• Calculating the gross salaries of your employees
• Applying deductions, such as applicable taxes, insurance, etc., to the gross salary
• Transferring net wages to the respective employee bank accounts
• Issuing payslips to the employees every month
• Creating and sending detailed salary reports and analytical metrics to your management team
• Filing paperwork for tax processing and tax returns
• Drafting employment contracts with new recruitments and settlements at the time of termination

Work Benefits And Provisions In The United States

The social security system in the United States ensures workers enjoy a healthy working environment in their respective companies. At the same time, the employer also has the right to internalize specific policies at their convenience. In short, the aim is to build and maintain a harmonious relationship between the employer and the workers.

Payroll Cycle And Minimum Wage Requirements

The standard cycle in the US is often monthly. Managing payroll involves distributing salaries to the employees around the same date every month. Employers can also opt for a bi-weekly payroll frequency.

The federal minimum wage in the U.S. is $7.25 per hour. However, many states and cities do not stick to this structure. They have set their own higher minimum wages.

Work Leave Entitlements

There are no federal mandates for paid annual, sick, or parental leave in the United States. However, some states and companies offer them as additional benefits to their employees. Employees who have completed their probationary period can enjoy up to 10 days of paid annual leave as per company policies (if applicable).

Some states and municipalities offer paid family leave programs or sick leave, but they vary in duration and eligibility. Some employers also provide paid parental leave or sick leave as a benefit.

Overtime Compensation

Under the Fair Labor Standards Act (FLSA), non-exempt employees (i.e., typically hourly workers) are entitled to overtime compensation if they exceed the weekly limit of 40 hours. The standard rate is 1.5 times the regular wage for the first two hours and 2 times the regular wage for every added hour. Some industries and businesses do not fall under this scheme.

Severance Pay And Termination Of Employment Contract

Severance pay is not legally binding for companies operating in the United States. It is typically offered at the employer’s discretion and can be based on factors like company policy, length of service, and reason for termination.

Both the employer and the employee exercise the right to terminate their employment contract. Termination can be due to various reasons, such as misconduct, noncompliance with company policies, closure of company operations, etc. In such cases, the specific guidelines about the notice period and severance pay (if applicable) come into play.

Tax Regime In The United States

The tax regulations in the United States are structured at three levels: federal, state, and local taxes. Both individual workers and corporates pay taxes to each constituent of this hierarchy.

For Individuals

Federal Income Tax – In the United States, the Federal Personal Income Tax follows a progressive model. In other words, as a worker’s earnings increase, the income tax rate goes up proportionally. As of 2023, the Federal Income Tax rates are fixed as under:

State Income Tax – Many states in the US impose their separate income tax on residents and sometimes non-residents who earn income within the state. The State income tax rates and brackets vary widely among states. Some states have no income tax at all.

Miscellaneous Taxes – Individuals may also be subject to other taxes such as Social Security tax (FICA), Medicare tax, capital gains tax, and estate tax. The exact amount depends on a person’s income, property, and investments.

For Businesses

Federal Corporate Income Tax – Corporations and businesses pay federal corporate income tax on their profits. The federal corporate income tax rate is charged at a flat rate of 21% for C corporations, starting tax year 2018.

State Corporate Income Tax – Some States within the US choose to apply State tax to the company income taxes. The rates vary from one State to another based on the services rendered or produced offered by a company.

Miscellaneous Business Taxes – Companies pay some variable taxes, too, such as payroll taxes, excise taxes, sales taxes, property taxes, and franchise taxes, depending on their business activities.

Regulatory Compliance With The Social Security System

As a company new to the US market, your focus would be building trust among consumers and employees. In this quest, it is necessary to remain compliant with the norms set up by the Social Security Administration (SSA) as part of the employee social security system. If your company regularly finds itself in the good books of the SSA, your track record will generate more sales and attract job seekers.

Here are some of the main provisions of the social security system built by the SSA:

Old-Age, Survivors, and Disability Insurance (OASDI)

As the name suggests, it is a federal program that provides retirement, survivor, and disability benefits to the eligible and their families. Both employers and the workers contribute to it through payroll taxes, known as Social Security taxes or FICA (Federal Insurance Contributions Act) taxes.

The benefit amount is based on the earning history of a candidate and the age chosen to start receiving the benefits.

Medicare

The popular federal health insurance program caters to workers aged 65 or above and younger individuals with disabilities. All major medical expenses, such as doctor’s visits, prescription drugs, and hospital stays, are covered under Medicare.

Supplemental Security Income (SSI)

SSI is a federal income support program for the elderly, blind, and disabled people with limited income and resources.

SSI provides cash assistance to these people to help meet basic needs such as food, shelter, and clothing.