Expanding into the US market presents both significant opportunities and complex regulatory challenges. From company registration and foreign investment filings to accounting practices and intellectual property protection, businesses must navigate a web of legal requirements to establish successful operations.
Payroll Tax Obligations: Social Security and Medicare
US employers are legally required to withhold Social Security and Medicare taxes from employee wages. This mandatory contribution serves dual purposes: complying with federal law and protecting worker benefits. The current tax rate stands at 6.2% for Social Security and 1.45% for Medicare, with employers matching these contributions dollar-for-dollar.
Pandemic-Era Leave Policies: FFCRA Compliance
The Families First Coronavirus Response Act (FFCRA) established temporary provisions for paid sick leave and expanded family/medical leave during the COVID-19 public health emergency. While some mandates have expired, many businesses continue voluntary compliance as part of their employee benefits packages and corporate social responsibility initiatives.
Employment Eligibility Verification
US law permits three primary categories of workers:
- Green card holders (permanent residents)
- Individuals with valid work authorization documents
- Work visa holders (including H-1B, L-1, and other nonimmigrant classifications)
Employers must complete Form I-9 verification for all hires and maintain proper documentation. Failure to comply with employment eligibility requirements can result in substantial penalties.
Successful US market entry requires careful planning across multiple operational areas. By addressing these compliance fundamentals early, businesses can establish stable foundations for long-term growth in the competitive American marketplace.