UK → US · UK → US
How does a UK recruitment agency run US payroll?
The US payroll, tax, workers' compensation and state-registration workstreams a UK agency must solve before a US placement starts.
The short answer
A UK agency placing US workers must establish who employs the worker, run a US-compliant payroll, withhold federal and state taxes, register in the states where the work occurs and carry workers' compensation. A UK payroll provider or umbrella is not automatically authorised to perform those US obligations; use a US-capable employer or specialist provider.
Key facts
- Pay cycle
- Weekly or biweekly is common in US staffing
- Registration basis
- Where the worker performs services
- Core cover
- Workers' compensation plus liability policies
US payroll is not a currency conversion. The employing entity or employer-of-record must handle wage and hour rules, federal withholding, state and local accounts, unemployment insurance, workers' compensation and year-end reporting.
Start with the states and occupations, not the provider brochure. A payroll system that supports federal tax does not necessarily register your business in every state, apply local rules or provide the workers' compensation class your client requires.
Decide whether the UK company employs the worker, a US subsidiary employs them or a specialist employer-of-record does. Each route changes control, margin, contracts and liability; outsourcing payroll administration does not always outsource the underlying employer responsibility.
Build the time-to-pay cycle around approved hours. US contractors expect predictable weekly pay, and a UK month-end process will create a cash and worker-trust problem if it is not redesigned.
Pilot one state and one niche, reconcile every payroll run to the assignment record and only then expand. Cross-border complexity is easiest to control while the exception count is still small.
United States
How this differs by US state and metro
The answer above holds nationally. What changes locally is registration, insurance, wage rules and how much cash each contractor consumes — these are the states and metros founders ask us about most.
Ohio
Columbus · Cleveland · Cincinnati
Register with the Ohio Department of Job and Family Services for unemployment insurance
Ohio guideGeorgia
Atlanta · Savannah · Augusta
Register with the Georgia Department of Labor for unemployment insurance
Georgia guidePennsylvania
Philadelphia · Pittsburgh · Allentown
Register with the Department of Labor and Industry for unemployment compensation
Pennsylvania guideNorth Carolina
Charlotte · Raleigh–Durham · Greensboro
Register with the Division of Employment Security for unemployment tax
North Carolina guideMetro-level wage, bill rate and startup cost detail:
United Kingdom
How this differs across the UK
UK employment law is national, so the rules travel with you. Rates, buyer behaviour and the size of the cash gap do not — here is what changes region by region.
London and the South East
London · Reading · Cambridge
Financial services, legal, technology and professional services buy the deepest contract volume, and most large buyers run PSL or MSP procurement you have to get onto before you can bill.
Manchester and the North West
Manchester · Liverpool · Warrington
Technology, digital, healthcare and logistics generate steady contract demand across the corridor.
The Midlands
Birmingham · Nottingham · Leicester
Engineering, manufacturing, logistics and warehousing dominate temporary demand.
Scotland
Edinburgh · Glasgow · Aberdeen
Energy, financial services, technology and health and social care carry the contract volume.
Local questions
Does this change if I start in Ohio?
The national answer holds. What changes in Ohio is local: Register with the Ohio Department of Job and Family Services for unemployment insurance Check the Ohio page before you register anything, and model the cash gap on Ohio pay rates rather than national averages.
Is the answer different in Georgia than in Ohio?
The economics are the same shape; the local detail is not. In Georgia: Register with the Georgia Department of Labor for unemployment insurance That affects your registration checklist and your working capital number, not the underlying principle.
Which US cities does this apply to?
All of them — but we publish metro-level bill rate, wage and startup cost detail for Cincinnati, Atlanta, Philadelphia, Pittsburgh and more, because pay rates and buyer mix vary far more between metros than between states.
Do I need a separate licence in every state I place in?
You register where you have employees and where you do business, not once nationally. Most states require unemployment insurance and withholding registration plus workers' compensation cover; a minority licence employment agencies, and some cities — New York City among them — licence separately from the state. Confirm each state and city before your first placement there.
Does this work differently in London and the South East?
The rules are UK-wide, so the compliance answer does not change. The commercial answer does: Financial services, legal, technology and professional services buy the deepest contract volume, and most large buyers run PSL or MSP procurement you have to get onto before you can bill.
Sources
General information for recruitment and staffing founders, not legal, tax or accounting advice.
Go deeper
Taking a UK recruitment agency into the US
Entity, state registrations, workers' compensation, payroll funding and the first US hire — what changes when a UK recruitment or staffing business crosses the Atlantic.
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