USA Payroll Solutions

Contractors in USA can be set up in 2 ways, Employed and Self Employed.

Contractors should be engaged in USA as employees with income fully processed through the local payroll. This is the
most compliant type of engagement in country known as W2.

Self-employment may be possible for contractors but this must be considered carefully. This is available to truly
independent contractors. To qualify as a self-employed person, the typical criteria will be economic independence;
freedom to determine his/her own activities, working hours and place of work; use their own equipment; hire assistants
or arrange substitutes, this is known as a 1099 contractor.

Tax year – The tax year is the calendar year for individuals

Immigration – Only US nationals can work in the USA without a work permit.

Workr Fees – W2 employment $575 per month plus $250 set up fee.

1099 self-employed fee is $350 per month, no set up fee.

Employment Summary

Registration – Our US entity is established with our own EIN payroll number, the contractor will be added to the payroll.

Contract – A fixed-term contract will be provided by the Workr team.

Employers social security contributions vary from state to state, this effectively means there are 50 different levels of
employers social security depending on which state the work is taking place in.

Employees social security contributions are 6.2% plus 1.45% for Medicare tax.

Tax – Federal and state tax varies from state to state and ranges from 16% to 24%

Benefits – There is no federal or state statutory minimum paid vacation or public holidays.

Self-Employment Summary

Registration – Workr will provide the 1099 form and contractor submits it with 1040 form direct to the authorities.

Contract – A fixed-term contract will be provided by the Workr team.

Social Security – SS rates are 6.2% plus 1.45% for Medicare tax.

Tax – Federal and state tax varies from state to state and ranges from 16% to 24%

Benefits – Typical business expenses associated with the running of your business can be claimed, these could include
home office, educational expenses, car expenses, business travel, mobile, health insurance and business insurance to
name a few.

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