EOR Cost in the United States: 2026 Pricing, FICA Taxes & PEO Comparison

1. Why Foreign Companies Use US EOR Services

Entering the US market entails navigating federal labor regulations plus 50 distinct state tax, workers' compensation, and unemployment jurisdictions. A US Employer of Record eliminates the need to incorporate a US C-Corp or register state-by-state employer withholding accounts.

2. US Statutory Employer Payroll Burden

Federal and state statutory employer costs in the United States typically total 9% to 14% of gross salary:

• Social Security (FICA): 6.2% on wages up to the annual statutory wage base.
• Medicare (FICA): 1.45% on all wages (no statutory ceiling).
• Federal Unemployment (FUTA): 0.6% on the first $7,000 of annual taxable earnings.
• State Unemployment (SUTA): Typically 1.5% to 5.5% depending on state location and claims history.
• Workers' Compensation Insurance: Statutory coverage costing 0.2% to 2%+ of payroll depending on role classification (office vs field).

Employment Rules & Compliance: For at-will employment rules, multi-state compliance, required offer letters, and termination guidelines, see our US Hiring & Employment Guide.