You’re on the fast track to establishing a successful business in the U.S. While you already have the fundamentals to a U.S. start-up in motion, it’s never too soon to start discussing U.S. staffing needs. It is important not to wait until the last minute if you are thinking of hiring within the U.S. There are many different factors that can ensure hiring top talent and offering a strong culture.

Choosing the Right Payroll Provider

Initially, you may not be in the position to onboard a full-time, internal HR Payroll Specialist as you expand your business into the U.S. If that is the case, we recommend outsourcing payroll services to ensure compliance with U.S. regulations. With outsourced payroll services,  you have options available that best suit your business model’s needs.

• Professional Employer Organization (PEO): If you are looking for more extensive support, a PEO may be the optimal service to consider. When utilizing a PEO, the employee is hired through the PEO. This essentially creates an employer partnership between your entity and the PEO. The benefit of utilizing a PEO is that they will manage payroll services, compliance, and other HR services, like benefits. In addition, a PEO can frequently provide access to benefits that are not easily accessible to small businesses.
• Traditional Payroll Provider: A Traditional Payroll Provider manages the administrative and compliance responsibilities with paying employees. This can include tax filings, payroll periods, and employee payment options.

Understanding State and Local Tax Requirements

State and local withholding for income taxes will vary depending on your business’s locality as well as the kind of work environment you offer (on-site/remote). Understanding the requirements of state income tax is imperative. Working with a trusted accounting professional can help alleviate the stress of an everchanging landscape. 

Offering the Right Employee Benefits

Employee benefits matter. The U.S. job market is extremely competitive. In order to attract the top talent, it is essential to provide an attractive benefit package. This may include cost effective health insurance options, health savings accounts, and 401K matching. In today’s market, benefits and employee incentives can distinguish your company from competitors.

Considering Fringe-Benefits and Other Taxable Compensation

To make your company more attractive to prospective employees, there are some nontraditional benefits that you can provide to help your company stand-out in a competitive labor market. Fringe-benefits are a form of compensation in addition to employee wages and salaries. Some examples of fringe-benefits include gym memberships, personal use of a company car, childcare costs, or other entertainment/wellness reimbursements. With fringe-benefits, the employer needs to know that these may be considered taxable compensation to the employee and that the employer is liable to report and withhold the tax that may apply to the benefits.

Another nontraditional benefit to consider is share-based compensation or equity planning. . From stock options, incentive stock options (ISO), restricted stock units (RSU), and more, there are many forms of share-based compensation.  This can be a good way to reward your employees with little cash investment up-front and allow them to be rewarded as the company grows in value.  The rules and reporting requirements are complex, and consultation before selecting an equity plan should be considered.

When starting the process of designing your employment model, finding a trusted advisor can greatly benefit your business. At BGBC we have services designed to assist with structuring a successful launch. Additionally we have a trusted network of professional service providers such as attorneys, wealth advisors, and payroll companies. For more information, contact us today.

Steven A. Eichenberger, CPA
stevee@bgbc.com
(317) 860-1060