Onboarding US Companies

Covers: Form I-9 · W-4 · FLSA · FICA · FUTA/SUTA · At-Will Employment · EEO · 401(k) · ACA · COBRA · FMLA · State Leave Laws

🌐 How HRSanad Supports US Companies

HRSanad's multi-tenant architecture allows each company to be configured independently. US companies require a distinct set of settings from the UAE default — different currency, calendar fiscal year, no gratuity, FICA-based payroll taxes, and a benefits-heavy compensation structure.

UAE defaults vs US requirements — key differences

📋 Pre-Employment Compliance

Before a new employee's first day of work, several federal and state compliance steps must be completed. These are non-negotiable legal requirements — failure to comply carries penalties.

Equal Employment Opportunity (EEO)

Background Checks & Drug Testing

📝 At-Will Employment

The United States is predominantly an At-Will Employment jurisdiction — meaning either party (employer or employee) can terminate the employment relationship at any time, for any reason (or no reason), with or without notice, as long as the reason is not illegal.

Offer Letters & Employment Agreements

NDAs and Restrictive Covenants

⚖️ FLSA Classification — Exempt vs Non-Exempt

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and child labor standards for private sector and government employees. Every employee must be correctly classified as Exempt or Non-Exempt. Misclassification is one of the most common — and most expensive — wage and hour violations.

Independent Contractors (1099) vs Employees (W-2)

💸 Payroll Taxes — Federal & State

FICA — Federal Insurance Contributions Act

FICA Example — Employee earns $5,000/month:
  Social Security (employee): $5,000 × 6.2%  = $310.00 deduction
  Medicare (employee):        $5,000 × 1.45% =  $72.50 deduction
  Social Security (employer): $5,000 × 6.2%  = $310.00 employer cost
  Medicare (employer):        $5,000 × 1.45% =  $72.50 employer cost
  Total FICA: $310 + $72.50 × 2              = $765.00 per month

FUTA — Federal Unemployment Tax Act

SUTA — State Unemployment Tax

Every state has its own unemployment insurance (UI) rate and wage base. Rates are assigned per employer based on experience rating (claim history). New employers get an assigned new-employer rate. Examples:

Federal Income Tax Withholding

💰 US Salary Structure & Pay Components

US compensation is generally less component-heavy than India or UAE. Salary is usually a single gross figure, with pre-tax benefit deductions (401k, health insurance) reducing taxable income. Configure these in HRSanad as pay components per employee or per grade.

🏥 Benefits Administration

401(k) — Retirement Savings Plan

Health Insurance — ACA Compliance

COBRA — Continuation of Coverage

HSA & FSA

🌴 Leave Configuration — United States

The US has no federal mandate for paid vacation or paid sick leave. Leave policies are company-defined. However, federal and state laws create specific requirements for certain leave types.

FMLA — Family and Medical Leave Act

Common Leave Types to Configure

State Paid Sick Leave Laws

State Paid Family Leave (PFL)

Several states have enacted Paid Family and Medical Leave (PFML) programs — funded by employee (and sometimes employer) payroll deductions:

📖 Employee Handbook & Company Policies

A well-drafted employee handbook is critical for US companies. It sets expectations, provides legally-required notices, and — when drafted carefully — protects the company's at-will status. The handbook should be reviewed by employment counsel for the specific states where employees work.

Anti-Harassment & Anti-Discrimination Training

📄 Payroll Forms Reference

📆 US HR Compliance Calendar

Final Pay Requirements by State (Termination)

Final paycheck timing at termination is highly state-specific — failure to comply results in penalties:

⚙️ Step-by-Step HRSanad Setup for a US Company

1. Create the Company Record

   Field	Value	Why
   country_code	US	Identifies as US entity
   payroll_currency	USD	All payslips in dollars
   fiscal_year_start	1 (January)	US tax year Jan–Dec
   wps_mol_id	Leave blank	No WPS in USA

2. Configure Gratuity Slabs — Set to Zero

   US has no statutory end-of-service gratuity. Create a single slab record for the US tenant with days_per_year = 0. This prevents any gratuity accrual appearing on US payslips. Severance, if offered, is a separate one-time payment handled outside the gratuity engine.

3. Set Up Grades — US Job Levels

   Create grades matching your US job leveling framework. Common structures:

   IC1–IC3
   Individual Contributor

   M1–M3
   Manager levels

   D1–D2
   Director

   VP / C-Suite
   Executive

   Tag each grade as Exempt or Non-Exempt using the grade notes field. This determines whether OT applies.

4. Create Pay Components

   Create the US-specific components listed in the salary table above. Key components per employee type:

   • Salaried Exempt: Base Salary, 401k Employee, Health Premium Employee, FSA/HSA, Social Security, Medicare, FIT, State Tax, 401k Employer Match, Health Premium Employer, SS Employer, Medicare Employer
   • Hourly Non-Exempt: Hourly Base (per_hour method), Overtime (ot_rate × 1.5), all same deductions above
5. Configure Leave Types

   Create the leave types per the table in the Leave section above. Key ones for Day 1: PTO/Vacation, Sick Leave (check your state), FMLA, Parental Leave, Jury Duty, Bereavement, Military (USERRA). Add state PFML leave type if operating in CA, NY, WA, MA, or NJ.

6. Add Employees — Capture US-Specific Data

   For each employee, collect and store in HRSanad:

   • Social Security Number (SSN) — store masked; needed for W-2 and tax filings
   • W-4 filing status — Single / MFJ / HOH + withholding adjustments
   • State withholding form — CA DE-4, NY IT-2104, etc.
   • FLSA classification — Exempt or Non-Exempt (use employee notes)
   • Employment type — Full-time, Part-time, Temporary

   • Bank account + routing number — for direct deposit (ACH)
   • 401(k) deferral election — percentage or dollar per paycheck
   • Health plan elections — plan type, dependents enrolled
   • I-9 document type and expiry — store in Documents tab
   • EEO self-identification — race/ethnicity, veteran, disability (voluntary)
7. Running Payroll (US-Specific Steps)

   Payroll in the US is typically run biweekly (every 2 weeks = 26 pay periods) or semi-monthly (twice a month = 24 pay periods). Monthly is less common. Each run follows the same Draft → Calculate → Approve → Finalize flow in HRSanad.

   🇺🇸 No WPS — Use JV Export + Direct Deposit File After finalizing payroll: (1) Generate the JV export for your accounting system (QuickBooks, NetSuite, etc.). (2) Create a NACHA-format ACH direct deposit file from the salary slip data and upload to your bank's portal. Most US banks accept NACHA files for bulk payroll. HRSanad's salary slip API provides all the data needed: employee name, bank routing + account, net pay amount.

🔒 Data Privacy & Security

✅ US Go-Live Checklist