US EOR costs and fees

One fee is not the whole bill

Your recurring bill combines gross salary, employer payroll taxes, insurance and benefits, and the EOR service fee. One-time setup, optional services, currency conversion and exit charges may sit outside that figure. A refundable deposit is cash tied up, not automatically a permanent cost.

Keep employee tax deductions separate. Withheld income tax and the employee’s share of payroll taxes generally come out of gross salary. Adding them to gross salary again would double-count the cost.

Advertised provider service fees

These figures were checked against linked provider sources on 30 September 2026. They are published service prices, not binding US quotes. Salary, taxes and benefits are additional. Unknown fees are not treated as zero.

Employer taxes in 2026

For ordinary covered wages, the employer Social Security rate is 6.2% up to the 2026 wage base of $184,500. Employer Medicare is 1.45%, without a wage cap. Additional Medicare withholding is an employee tax; there is no employer match.

Federal unemployment tax (FUTA) is generally 6% on the first $7,000 of covered wages. The maximum state unemployment credit can reduce it to 0.6%; credit reductions and eligibility can change the result. State unemployment and other state costs must be calculated for the actual employment arrangement.

Source: IRS Publication 15 for 2026. Rates checked 30 September 2026. Confirm coverage and exceptions with the payroll provider.

A transparent planning example

For a $100,000 annual salary, employer Social Security and Medicare total $7,650 per year. The illustration below spreads that cost across 12 months and uses an assumed $599 monthly EOR fee. It is a partial subtotal, not a US all-in quote.

Benefits, deposits and currency

Benefits. Request plan documents, employer and employee premium shares, dependent coverage and effective dates. Ask about retirement matching and benefit administration charges.

Funding. Record the deposit amount, payroll prefunding dates, whether funds earn interest, permitted deductions and the return deadline. A refundable deposit can still affect working capital.

Foreign exchange. Ask which invoice amounts are converted, the benchmark rate, any spread or separate fee and when the rate is fixed. A margin on salary and employer costs may outweigh a small saving on the service fee. If you fund and pay in USD, confirm whether any conversion is needed.

Optional services. Request prices for immigration advice, equipment, background checks, off-cycle payroll, equity administration and contract changes only where they apply.

Cost the end of the arrangement

Have the EOR explain final-pay timing, unused leave treatment, benefit continuation and any notice or severance commitments for the relevant state and agreement. Ask separately about its offboarding fee, annual-plan cancellation and deposit reconciliation. Do not assume at-will employment makes termination cost-free.

Compare at least three scenarios: employment continues for 12 months, ends early, or transfers to your own US entity. Document which amounts are estimates and which the provider commits to contractually.