The estimated employer cost in the United States is approximately 17.47% on top of gross salary. The table below sets out the main federal components. State-level obligations vary and are confirmed during onboarding.
| Component | Notes |
| Social Security (OASDI) | Employer rate: 6.20%. Wage base cap: $176,100. |
| Medicare | Employer rate: 1.45%. No cap. An additional 0.9% employee surcharge applies above $200,000. |
| Federal Unemployment (FUTA) | Employer rate: 0.60%, applied to the first $7,000 of wages. |
| State Unemployment (SUTA) | Varies by state. Typically 1.5% to 5%. |
| Workers' compensation | Varies by state. Mandatory in most states and rate is set by job class code. |
| ACA health insurance (est.) | Estimated 8.00% to 9.00%. Applies to employers with 50 or more full-time equivalents. |
| Employer costs vary significantly by state. The figures above reflect federal obligations plus typical state averages. Danbro International will confirm state-specific rates during client onboarding. |
The United States has no universal statutory benefits mandate comparable to other markets. Federal law does, however, impose the following obligations on employers:
• Social Security and Medicare (FICA) contributions are mandatory for all employees.
• Federal Unemployment Tax Act (FUTA) contributions are required from all employers.
• Employers with 50 or more full-time equivalent employees must offer minimum essential health coverage under the Affordable Care Act (ACA).
• Workers' compensation insurance is mandatory in almost all states.
• The Family and Medical Leave Act (FMLA) provides eligible employees up to 12 weeks of unpaid, job-protected leave per year for qualifying reasons.
| Several states and municipalities impose additional obligations above federal minimums, including paid sick leave, paid family leave (for example, California, New York, and New Jersey), and local minimum wage requirements. Compliance must be assessed at both state and municipal level. |
Fixed-term contracts are permitted in the United States. The country operates predominantly on an at-will employment basis, meaning either party may end the relationship at any time without cause, unless a contract specifies otherwise.
Fixed-term arrangements are commonly used for project-based, seasonal, or temporary roles. At the conclusion of a fixed term, employment typically ends without additional notice or severance obligations unless the contract expressly states otherwise.
Annual leave and public holidays
The United States is the only OECD country with no statutory minimum paid annual leave entitlement. Paid time off is entirely at the employer's discretion and governed by company policy. Market practice for professional roles typically ranges from 10 to 15 days per year, increasing with tenure.
| Danbro International's standard employment policies will govern leave entitlement for employees on our payroll. These are confirmed during client onboarding and reflected in the employment contract. |
Federal public holidays in 2026 (11 days):
| Date | Holiday |
| 1 January 2026 | New Year's Day |
| 19 January 2026 | Martin Luther King Jr. Day |
| 16 February 2026 | Presidents' Day |
| 25 May 2026 | Memorial Day |
| 19 June 2026 | Juneteenth National Independence Day |
| 4 July 2026 | Independence Day |
| 7 September 2026 | Labor Day |
| 12 October 2026 | Columbus Day |
| 11 November 2026 | Veterans' Day |
| 26 November 2026 | Thanksgiving Day |
| 25 December 2026 | Christmas Day |
| State and local authorities may observe additional holidays. Employees are not automatically entitled to paid leave on public holidays unless the employer's policy provides for it. |
There is no statutory probation period in the United States. Employers may include a probationary period in employment contracts, typically ranging from 30 to 90 days, during which performance is formally assessed.
Given the at-will nature of US employment, a probationary period carries no additional legal significance in most states. Standard at-will rights apply throughout.
There is no federal legal requirement to provide notice of termination. Employment is at-will, and either party may end the relationship at any time without cause.
Market convention is for employees to give two weeks' notice when resigning. Employers are not legally obliged to provide advance notice before terminating employment, though individual contract terms may specify otherwise.
• WARN Act: employers with 100 or more employees must provide 60 days' written notice of plant closings or mass layoffs under the Worker Adjustment and Retraining Notification Act.
• Several states have mini-WARN laws with lower thresholds that may apply independently.
Employment in the United States is predominantly at-will. Either party may end the relationship at any time, with or without cause, unless a contract or collective bargaining agreement provides otherwise.
• Final pay must be issued in accordance with state law. Many states require final wages on the last day of work or within a defined short period thereafter.
• Accrued but unused paid time off may be required to be paid out at termination depending on state law and company policy.
• Health insurance coverage under an employer-sponsored plan typically ends on the last day of employment or the end of the month. COBRA continuation coverage must be offered to eligible employees and dependants.
• Terminated employees may be eligible for state unemployment insurance benefits unless dismissed for serious misconduct.
Under federal law, there is no statutory severance pay obligation. Severance is a matter of contract or employer policy, not law.
• Where a severance plan or policy exists, the employer must apply it consistently across similarly situated employees.
• The Employee Retirement Income Security Act (ERISA) governs severance plans that qualify as employee welfare benefit plans.
• Severance agreements commonly include a general release of claims and are typically reviewed by employment counsel before execution.
| While severance is not legally required, Danbro International recommends having a defined severance policy in place before employment commences. This supports consistent and defensible treatment of employees upon exit. |
The following supplemental benefits can be arranged for employees in the United States as part of a competitive total compensation package. These benefits represent an additional cost to the client:
• Health insurance (medical, dental, and vision)
• Life insurance
• Accidental death and dismemberment (AD&D) insurance
• Short-term disability (STD) insurance
• Long-term disability (LTD) insurance
• Pension and retirement savings (401(k) plan)
The standard pay cycle for employees in the United States processed through Danbro International is semi-monthly (24 pay periods per year) or bi-weekly (26 pay periods per year). The applicable cycle is confirmed with the client during onboarding and reflected in the agreed payroll schedule.
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