Recruitment in USA

Recruitment in USA: Frequently Asked Questions

What is the monthly cost of using an Umbrella Company in USA? 

5.9% of gross billing.


What is the cost of a Work Permit in USA?


H1B is around $6,000 USD, TN can cost as little as $270 USD and E3 $270 USD.

How long does it take to get a work permit in USA?

E3’s take around 4 weeks, TN’s for Mexicans take about 2 weeks and for Canadians 2-3 days (and can be obtained at the border). H1B’s on the other hand take a considerable amount of time and the applicant can only start working in the US on 1st October of any given year.

What is the estimated net retention in USA for a contractor earning USD 500 per day?

*update pending

What is the estimated net retention in USA for a contractor earning USD 1000 per day?

It really depends on which state and which city the contractor is working in. If the Living Away from Home Allowance is applicable for the candidate an estimate would be 70%.

Read more about the work permit process.

click here


Recruitment in USA can be a challenge, but you don’t have to drown in time-consuming admin just to place a candidate. You can simplify complications by using an Umbrella Company (or “contractor management company”), as long as you pick the right one.

Skip ahead to find out how we can help you place candidates faster, or simply read on to find out more about the specific issues you’ll face.

Placing a new contractor in USA: what are the challenges?


Recruiting in USA generally requires a lot of complex admin duties, and contractors might end up paying too much in taxes or failing to comply with USA tax law. It’s important to know what kind of concerns you’ll be facing.

  • Double taxation: Contractors can incur a tax liability in both their home country and in USA. Many countries have agreements that mitigate this type of issue, but whether or not you can take advantage of them will depend on factors like the length of the contractor’s stay, or the laws of the contractor’s home country. You can learn more about double taxation here (note: this info was written with respect to the UK, but the general concepts will still apply).
  • Withholding tax: If a foreign company is used to provide services overseas, the payments made to that company by the USA client could be liable for withholding tax under USA tax law. Find out more about withholding tax.
  • Individual taxation and tax residency: A contractor’s tax liability will often be determined by his or her residency status in their home country and in USA. Figuring out their tax residency can be difficult and is often tied to the length of their stay in USA (or out of their home country). Read more about tax residency and individual tax liability here.
  • Permanent establishment: Most double taxation agreements limit the scope of taxation in the host country by providing that a business is only taxable in another state if it has a permanent establishment in that state. A permanent establishment is a fixed base such as a branch, office, factory, workshop, mine or oil well. To find out how to avoid permanent establishment and unnecessary tax liability, read more about the issue.

Work permits

Contractors will need to find a sponsored work permit, which can be difficult and may seriously slow the placement process. Additionally, they’ll need a new permit for each new contract, spawning even more paperwork.

See our FAQ to find out more about the cost and processing time of USA work permits.

Why use a contractor management company?

An efficient way to manage these problems is to outsource them to a contractor management company. They’ll act as the contractor’s “employer,” handling all of their invoicing, fees, and social security. As USA tax experts, they also help contractors comply with local tax law while maximising the amount they get to keep.

A quicker, better recruitment process: Working with an Umbrella Company means saving time, effort, and resources. Higher earnings and a smoother transition also make contracting a more attractive opportunity, helping you place candidates more quickly and successfully.

Still, you’ll need to find the right company for you and your candidate.

How to find the right Umbrella Company?

Making sense of the optionsFor free, we match contractors with Umbrella Companies and can help dramatically reduce waiting times. There are numerous Umbrella Companies in USA and each has its own specialties, services, and payment structures. Choosing the right one is crucial, but it can be difficult when you’re facing a bunch of unfamiliar options.

We’ve developed an extensive database of these companies. We can guide you through your options and help connect you with the best company for you and the contractor.

Get in touch: If you want straightforward, honest advice on recruitment in USA, we’re easy to contact. Call, e-mail, or chat with us online - for free.

Send your details for more information

Work Permits & Payroll - Frequently Asked Questions

Yes. Mexicans and Canadians can obtain TN visas, Australians E3 Visas and all other nationalities must obtain an H1B.

What documentation is required for a USA work permit?

Copies of passport, CV, passport photos, professional references.

What is the work permit process in USA?

For the E3 and H1B a US company will lodge the application in the US and once approved the applicant must have the visa ratified in the US Consulate of their home country. For the TN visas the application for Canadians can be done at the border on entry, the documentation would be need to be collated in advance. For Mexicans the application needs to be made in advance of travelling at the US Consulate in Mexico.

Can you transfer from a Business Visa to a Work Permit in USA?


Can we organise Business Visas in USA?


How long does it take to process a Business Visa in USA?


How much does a Work Permit cost in USA?


Can nationals of certain countries enter USA without a Business Visa (ex. on an entry visa or visa waiver)?

Yes but not to work.g

$6,000 USD per month but it is skill set dependent.

What is the monthly cost to run a local payroll in USA?


 5.9% of gross billing.

How does payroll work in USA?


Your employer (the company sponsoring your visa) pays the candidate on a monthly basis. They deduct social security  - which is 7.75% for employers and 7.75% for employees. This reduces for earnings over USD 106,800 per year as OASDI (Old Age, Survivors and Disability Insurance) is only due on the first USD 106,800. They also deduct income tax - which is progressive and varies from 10-35% (plus local or state taxes which run from 0-11%) pendant on salary level and region. These deductions are made at source and paid to the United States tax authorities. Candidates are able to offset their taxable income with relevant business expenses. The World Bank estimates it takes employers in United States 55 man days to ensure compliance with payroll and labour taxes each year.




Client comment

"Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter."

Prishen Pillay,Global DBA Operations Lead

Shell International Trading & Shipping