Contracting in the USA, sorted

Whether you are a new or seasoned contractor, we’ll be by your side as your trusted and compliant payroll solution provider in the United States. Ready to start your journey?

Umbrella International

Simplifying payroll for contractors working in the USA

The United States offers a wealth of contracting opportunities across industries such as IT, engineering, healthcare, and finance. However, navigating the complexities of contracting in the United States—including tax regulations, state-specific employment laws, and compliance requirements—can be challenging.

As an Employer of Record, Umbrella International offers a W-2 payroll solution for contractors across the USA. Whether you’re a UK-based contractor taking on an assignment in the US or an independent professional working within the States, our W-2 payroll ensures that you get paid on time, remain tax-compliant, and avoid the risks of misclassification.

Contracting in the United States: What You Need to Know

Unlike the UK, where umbrella companies are widely used, the contracting landscape in the USA is shaped by strict worker classification laws and varying state-specific tax regulations. Contractors in the USA typically work under one of the following classifications:

  • W-2 Employees (Through an Employer of Record) – Contractors employed by a third party that handles tax withholdings, compliance, and payroll processing.
  • Independent Contractors (1099 Workers) – Self-employed professionals responsible for managing their own taxes, benefits, and insurance.

Due to increased enforcement of worker classification rules by the IRS (Internal Revenue Service) and state labour departments, many businesses prefer to work with W-2 contractors through Employer of Record (EOR).

This is where Umbrella International comes in—offering a streamlined contractor payroll USA solution that ensures compliance while providing contractors with the security of employment benefits.

How does W-2 payroll work in the USA?

With Umbrella International, you become our W-2 employee while continuing to work on your contract assignment. This structure ensures that all necessary payroll deductions, including federal and state taxes, Social Security, and Medicare, are handled on your behalf.

Hassle-Free Payroll

We ensure timely payments in USD, processing payroll in compliance with US labour laws.

Full Compliance with US Tax Laws

We handle federal and state income tax deductions, Social Security (FICA), Medicare, and any other applicable withholdings.

Legal Worker Classification

Avoid the risks of misclassification by working as a W-2 employee through an Employment of Record.

Access to Employment Benefits

Potential eligibility for benefits such as health insurance, retirement plans, and paid leave.

Multi-State Support

Whether your assignment is in California, Texas, New York, or another state, we handle compliance with state-specific employment laws.

Want to know more about contracting in the USA?

Our team of advisors are on hand to answer any questions you may have about contracting in the United States.

How to onboard with Umbrella International in the USA

Getting started with Umbrella International in the USA is simple and stress-free.

Speak to Our Team

Contact our experts for a consultation. We’ll discuss your contract, work location, and payroll needs to determine the best solution for you.

Receive a Take-Home Pay Illustration

We provide a breakdown of your estimated earnings after federal, state, and payroll tax deductions, so you have full transparency.

Onboarding and Compliance Checks

Our US-based team will guide you through the onboarding process, ensuring all employment documents, compliance checks, and tax forms (such as the W-4 for tax withholding) are completed.

Start Your Contract and Get Paid

Once onboarded, we handle your payroll, tax withholdings, and compliance, ensuring you receive your payments securely and on time.

Ongoing Support Throughout Your Assignment

Our team is always available to assist with tax questions, payroll concerns, and contract extensions.

Get signed up today

Send us your details and one of our friendly team will be happy to get you registered and answer any questions you may have.

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