Key Takeaways:
- U.S. law requires relatively few employee benefits, but competitive packages often include health insurance, retirement plans, paid time off, and other coverage that employees have come to expect.
- Benefit options vary by EOR provider, so companies should compare plans, employee eligibility, employer contribution options, and any additional benefit choices they can add.
- Employee benefits costs are an additional line item on top of the EOR service fee, so companies should factor both into the overall cost when comparing providers.
Businesses across the globe frequently look to the United States to hire skilled professionals and build a presence in one of the world’s largest markets.
U.S. affiliates majority-owned by foreign companies employ 8.57 million U.S. workers. That’s about one in 16 private-sector jobs, with U.K., Japanese, and German parent companies accounting for the largest shares.
But hiring in the U.S. for the first time can be complicated, especially if you don’t already have a local entity, payroll setup, or benefits infrastructure in place. And top candidates won’t necessarily wait while you build it.
That’s where a U.S. Employer of Record (EOR) can help. An EOR allows companies to legally hire and offer benefits to American employees without establishing a local business entity. The EOR becomes the worker’s legal employer and handles responsibilities such as payroll, employment taxes, healthcare coverage, and benefits administration on your company’s behalf.
Your American hire, however, will need access to benefits designed for the U.S. market rather than simply receiving whatever benefits your company provides to employees in its home country. Eligible employees can access those plans through the EOR.
Health insurance is particularly important in the U.S., where there’s no universal government health coverage, and many people rely on employer-sponsored insurance. The quality, cost, and flexibility of an EOR’s benefits can therefore play a significant role in both attracting employees and choosing the right provider.
How Does Hiring U.S. Employees Through an EOR Work?
When you work with an EOR, you’re still in the driver's seat: You direct your employees’ work and set goals, review output, and manage performance.
But as the legal employer, the EOR handles the behind-the-scenes employment administration, including running payroll, calculating and remitting required tax withholdings, maintaining required insurance, and administering benefits.
It’s also important not to confuse an EOR with a Professional Employer Organization (PEO). A PEO co-employs workers with a company that already has a U.S. entity, while an EOR can legally employ U.S. workers on behalf of a company without one.
What Benefits Can You Offer U.S. Employees Through an EOR?
U.S. employees hired through an EOR can access many of the same types of benefits offered by U.S. companies, including health insurance, retirement plans, and voluntary benefits.
EOR Health Insurance
Health coverage is often one of the most important benefits for American employees. Many EORs offer group health plans through established insurers, with dental and vision coverage also available depending on the provider and plan.
Coverage can vary considerably between EORs, so you should compare the insurer and provider network, employee costs, dependent coverage, and whether the available plans work well in the states where your employees live.
You may also have some room to decide how much of the premium your company picks up versus what the employee pays. Family premiums were up 6% year over year in 2025, reaching nearly USD 27,000 for family coverage. Workers contributed USD 6,850 of that on average, so covering more of those costs can make an employer’s benefits package more appealing to U.S. employees.
Given how much healthcare matters to U.S. employees, it’s worth looking closely at what each EOR actually offers. RemoFirst, for example, provides healthcare options through RemoHealth and RemoHealth Local. RemoHealth provides international private medical coverage, while RemoHealth Local gives employees access to plans tailored to the markets where they live.
Retirement Benefits
Some U.S. EOR providers give eligible employees access to a 401(k) or another retirement savings program. Employees can contribute part of their paycheck, and employers may also contribute or offer a match.
As with health insurance, the specifics matter. Review eligibility requirements and employer contribution options to understand what’s available and how the plan can fit into your U.S. compensation package.
Other Voluntary Benefits
Beyond health insurance and retirement plans, EORs may offer additional benefits that provide employees with financial protection, tax advantages, or support for their overall well-being. Depending on the EOR, these can include:
- Life insurance
- Short-term and long-term disability coverage
- Flexible Spending Accounts (FSAs)
- Health Savings Accounts (HSAs) for employees enrolled in qualifying health plans
- Wellness benefits or other optional programs
Required Benefits vs. Competitive Employee Benefits
U.S. law doesn't require employers to provide many of the benefits employees have come to expect. Federal and state laws impose certain requirements, which can include workers’ compensation, unemployment insurance, and paid leave or disability programs depending on where an employee works.
But benefits that are standard in many other countries aren't necessarily required by U.S. federal law. Employers don't have to provide paid vacation, sick days, parental leave, or bereavement leave at the federal level, although laws such as the Family and Medical Leave Act (FMLA) provide eligible employees with unpaid, job-protected leave in certain circumstances. State and local laws can also require paid leave and other benefits.
Legal requirements are only part of the equation. Meeting them doesn't necessarily mean your benefits package will meet U.S. candidates' expectations.
How Much Control Do You Have Over EOR Benefits?
When you hire through an EOR, you choose from the provider’s available benefit plans rather than building your own package from scratch.
However, there’s still room for flexibility. Depending on the EOR and available plans, you may be able to choose which benefit plans to offer, how much your company contributes toward premiums, and whether to add optional coverage, allowances, or other perks.
That’s why it’s worth looking beyond a provider’s benefits checklist. Similar-looking packages can vary widely in terms of plan choices, provider networks, costs, and employer flexibility.
Can EOR Employees Receive the Same Benefits as Your Other Employees?
Providing identical benefits across a global workforce isn't always practical. Healthcare, retirement, paid leave, and other workplace benefits work differently from country to country, so U.S. employees hired through an EOR will typically participate in plans designed for the U.S. market.
Instead of trying to replicate every benefit offered elsewhere, companies can aim for comparable overall value and quality. Depending on the EOR, it may also be possible to add allowances, stipends, or other perks to complement the standard package.
How Much Do U.S. Benefits Through an EOR Cost?
Benefits come with their own costs, separate from the EOR’s core service fee. Costs depend on the plans selected, employer contribution levels, employee enrollment, and dependent coverage.
Health insurance is often one of the largest expenses. An employer covering most of an employee’s premium and contributing toward family coverage will pay considerably more than one covering a smaller share of an employee-only plan.
When budgeting for a U.S. hire, factor benefits into the overall cost alongside salary, employer taxes and contributions, required coverage, and EOR fees.
What Should You Ask About U.S. EOR Employee Benefits?
Before choosing an EOR, make sure you understand what employees will receive and how much flexibility your company has. It’s okay to ask a lot of questions!
Ask the EOR:
- Which medical, dental, and vision plans are available, including insurers and provider networks.
- Whether coverage is available in every state where you plan to hire.
- How much your company can contribute toward premiums and dependent coverage.
- Whether employees have access to a 401(k) and whether employer contributions or matching are supported.
- Which additional benefits, such as life and disability insurance, are available.
- When employees become eligible for coverage and whether waiting periods apply.
- What happens to benefits when employment ends.
- Whether allowances, stipends, or other perks can supplement the standard package.
Review the actual plan details, costs, and eligibility requirements before making a final decision.
Offer Competitive U.S. Benefits Without Setting Up a U.S. Entity
An EOR gives international companies a simpler way to offer competitive benefits to U.S. employees without first establishing a local entity.
RemoFirst can legally employ U.S. workers on your company’s behalf and take care of the employment administration that comes with it. Through RemoHealth Local, eligible employees can access healthcare plans designed for the U.S. market, alongside other available benefits.
Book a demo to learn how RemoFirst can help you hire and offer a competitive benefits package to U.S. employees.
Frequently Asked Questions
Can an EOR provide health insurance to U.S. employees?
Yes. U.S. EORs can provide eligible employees with access to health insurance plans, often including medical, dental, and vision coverage. Available plans, costs, provider networks, and employer contribution options vary by EOR.
Can an EOR offer a 401(k)?
Many U.S. EORs offer eligible employees access to a 401(k) or other retirement savings plan. Depending on the provider, employers may also be able to contribute or offer a company match.
Who pays for employee benefits when using an EOR?
Employers can choose how much to contribute toward available benefits within the options the EOR supports, while employees may pay the remaining portion through payroll deductions.
Are benefits included in an EOR's monthly fee?
No. The EOR service fee covers the provider's core employment services, while health insurance, retirement contributions, and other employee benefits have separate costs.
