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US Expansion: Human Resources in the US

Human resources is a broad term to describe the cumulative tasks related to employee administration. Employee administration and compliance in the US will be very different from your home country. Below are the broad categories related to human resources management in the US:

Payroll Administration – Payrolls in the US are typically processed either semi-monthly (24 pay periods) or bi-weekly (26 pay periods). Payroll administration includes filing and depositing the required Federal and State taxes, making the appropriate payroll deductions, and distributing W-2 forms annually.

Employee Benefits – In the US, employers are expected to provide insurance for health, dental, vision, life, plus health savings accounts, and 401K retirement plans for their employees (in lieu of government programs). Enhanced employee benefit programs are one of the key tools to attract and retain talent in the US.

Talent & Culture – Human resources is responsible for recruiting, hiring and onboarding new employees, developing competitive compensation and benefits programs, plus creating a positive work environment and culture. HR is also responsible for managing career development and addressing work-related issues for employees.

Compliance – There is a wide range of compliance-related federal and state laws that HR is responsible for adhering to, including anti-discrimination, wage & hour, family and medical leave, immigration, employee benefits, and safety laws. Non-compliance with HR laws can lead to material consequences for employers and executives.

Technology – Your US subsidiary will need a technology platform to manage all its payroll, benefits, talent, and compliance-related programs and processes. US employees also expect to be able to access all their personal HR-related information on a self-service basis through mobile apps.

Utilizing a Professional Employer Organization (commonly referred to as a PEO) to provide and manage all human resources-related functions can be a good option for your US subsidiary to consider.

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