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Employer Hub · Deep dive

U.S. HR Glossary and Hiring Checklists

98 U.S. HR and employment terms with their closest Italian equivalents, plus six step-by-step checklists for hiring, onboarding, offer letters, the annual compliance calendar, exits and sending Italian staff to the U.S.

By Francesca Paccaloni, Managing Partner, Cygic Recruitment · Updated October 2026

98 termsU.S. HR and employment terms, each with the closest Italian equivalent

3 business daysDeadline to complete Form I-9 Section 2 after the first day of work

20 daysFederal default for new-hire reporting (Georgia: 10 days, Massachusetts: 14)

Jan 31Forms W-2, 1099-NEC, 940 and Q4 941 all due (next business day on weekends)

Glossary: hiring

Hiring and recruiting

This glossary is written for Italian HR directors, CFOs and founders who know the Italian system (CCNL, TFR, INPS, preavviso) and need a fast, reliable translation of the U.S. vocabulary. Each table gives the U.S. term, the closest Italian equivalent (or "nessun equivalente" when the concept does not exist in Italy) and a short explanation. The checklists further down the page turn these terms into step-by-step actions. For deeper coverage, see the hiring, setup and compliance topics.

Term	Italiano	Explanation
At-will employment	Nessun equivalente (closest: recesso ad nutum)	Either party may end the relationship at any time, for any lawful reason or none, without notice. It is the default in every state except Montana, and a contract or offer letter can override it.
Offer letter	Lettera di assunzione / proposta	A short letter confirming title, pay, start date and conditions. Unlike an Italian contratto individuale, it usually states that employment is at-will and is not a fixed-term commitment.
Employment agreement	Contratto individuale di lavoro	A negotiated contract, typical for executives, that may set a term, "cause" definitions, severance and restrictive covenants. Most U.S. staff never sign one.
Exempt / non-exempt	Nessun equivalente (loosely: quadri/dirigenti vs impiegati/operai)	FLSA classification. Exempt staff are paid a salary of at least $684 per week ($35,568 a year, higher in CA, NY, WA, CO) and pass a duties test, so no overtime; non-exempt staff earn 1.5x pay above 40 hours a week.
W-2 employee vs 1099 contractor	Lavoratore dipendente vs lavoratore autonomo (partita IVA)	The two worker categories, named after their year-end tax forms. Misclassifying an employee as a contractor triggers back taxes, overtime and penalties.
ABC test	Nessun equivalente (closest: indici di subordinazione)	A strict test (CA, NJ, MA, IL for some purposes) that presumes a worker is an employee unless the work is free from control, outside the usual course of business and part of an independent trade.
Background check	Verifica dei precedenti	Criminal, employment, education and sometimes credit checks run by a consumer reporting agency. Much broader than what Italy allows, but tightly regulated by the FCRA and state law.
FCRA	Nessun equivalente (closest: regole privacy/GDPR)	Fair Credit Reporting Act: requires a standalone disclosure, written consent, and a pre-adverse and adverse action notice before rejecting a candidate based on a report.
Ban-the-box / fair chance laws	Nessun equivalente	State and city laws (CA, NY, NJ, IL, NYC, Philadelphia and many more) that forbid asking about criminal history until after a conditional offer.
Pay transparency	Trasparenza retributiva (Direttiva UE 2023/970)	Laws in states such as CA, NY, WA, CO, IL, NJ, MA, MN and VT requiring a good-faith pay range in job postings. Member states, including Italy, had to transpose the directive by June 7, 2026.
Non-compete	Patto di non concorrenza (art. 2125 c.c.)	Post-employment ban on competing. Void in CA, ND, OK and MN; limited by salary thresholds in many states. Unlike Italy, most states do not require paying a separate consideration (Massachusetts requires garden leave or other agreed consideration).
PIIA (confidentiality and invention assignment)	Accordo di riservatezza e cessione delle invenzioni	Standard document assigning work inventions to the employer and protecting trade secrets; CA, IL, WA and others limit what can be assigned.
EOR (Employer of Record)	Nessun equivalente diretto (closest: somministrazione)	A provider that legally employs your U.S. worker, runs payroll and benefits, and bills you monthly. Fast, but you do not own the entity.
PEO (Professional Employer Organization)	Nessun equivalente	A co-employment model: you must have your own U.S. entity, and the PEO handles payroll, benefits and HR compliance while you direct the work.

Italian perspective: The biggest mental shift is that the U.S. has no CCNL. Pay, hours, notice and benefits come from federal law, state law, the offer letter and company policy. That is why the offer letter and handbook carry so much weight in the U.S.

Glossary: pay

Pay and payroll

U.S. payroll is simpler than Italian payroll in one sense (no 13th or 14th month, no TFR accrual, far fewer contribution lines) but it is fragmented across the federal government, states and sometimes cities. See the payroll and compensation topics for full cost examples.

Term	Italiano	Explanation
Base salary	Retribuzione annua lorda (RAL)	Annual gross pay, quoted as a single figure. There is no 13th or 14th month: a $120,000 salary is paid in 26 or 24 equal installments.
Pay frequency	Periodicità della retribuzione	Weekly, biweekly (26 checks), semimonthly (24) or monthly. States set minimums: California requires at least semimonthly for most staff and New York weekly for manual workers.
FICA	Contributi previdenziali (INPS)	Social Security (6.2% each for employer and employee on wages up to $184,500 in 2026) plus Medicare (1.45% each, no cap; employees pay an extra 0.9% above $200,000).
FUTA	Contributo di disoccupazione (NASpI), parte federale	Federal unemployment tax paid only by the employer: usually 0.6% of the first $7,000 of wages, or $42 per employee per year.
SUTA / SUI	Contributo di disoccupazione, parte statale	State unemployment tax on a state wage base, with a new-employer rate that later reflects your layoff history. A few states (NJ, PA, AK) also take an employee share.
Withholding	Ritenuta d'acconto (IRPEF)	Income tax the employer deducts from each paycheck and deposits for the employee: federal, state (none in TX, FL, WA, TN and a few others) and sometimes local (NYC, Ohio cities, Philadelphia).
Form W-4	Nessun equivalente (closest: richiesta detrazioni al sostituto d'imposta)	Federal form the employee completes to set withholding. Without one, you must withhold as for a single filer with no adjustments.
Form W-2	Certificazione Unica (CU)	Annual statement of wages and taxes withheld, due to employees and the Social Security Administration by January 31.
Form 1099-NEC	CU per lavoratori autonomi	Reports payments to independent contractors, due January 31. The reporting threshold rises from $600 to $2,000 for payments made from 2026 under the 2025 tax law; confirm with your CPA.
Form 941	Nessun equivalente (closest: UniEmens / F24 riepilogo)	Quarterly federal payroll tax return, due April 30, July 31, October 31 and January 31.
Form 940	Nessun equivalente	Annual federal unemployment (FUTA) return, due January 31 (February 10 if all FUTA was deposited on time).
Overtime	Lavoro straordinario	1.5x the regular rate for non-exempt hours above 40 per week. California also requires daily overtime above 8 hours and double time above 12.
Minimum wage	Salario minimo (in Italia fissato dai CCNL)	Federal floor of $7.25 an hour, but most target states and many cities set higher rates, changing on January 1 or July 1.
Supplemental wages	Nessun equivalente (closest: tassazione separata)	Bonuses and commissions paid separately may be withheld at a flat 22% federal rate (37% above $1 million in the year).
Qualified overtime / tips deduction	Nessun equivalente (closest: detassazione degli straordinari)	Under the 2025 federal tax law, employees can deduct part of their overtime premium and tips for 2025 to 2028; employers must report these amounts separately on the W-2.

Watch out: Quoting a U.S. candidate an Italian-style "RAL divided by 14" confuses everyone. Always quote annual base salary plus separately stated bonus, and remember that U.S. employees compare offers net of their health insurance premium share.

Glossary: benefits

Benefits

In Italy the Servizio Sanitario Nazionale, INPS and INAIL provide most protection. In the U.S. the employer is expected to organize health insurance, retirement savings and disability cover. For plan design and costs see the benefits topic.

Term	Italiano	Explanation
Group health plan	Assicurazione sanitaria collettiva (not integrative: it is primary)	Employer-sponsored medical, dental and vision insurance. For most Americans it is the main source of health coverage, so it strongly influences recruiting.
PPO / HMO / HDHP	Nessun equivalente	Plan types. PPOs allow out-of-network care at higher cost; HMOs require in-network providers and referrals; HDHPs have high deductibles and pair with an HSA.
HSA (Health Savings Account)	Nessun equivalente	Tax-advantaged account paired with an HDHP. 2026 limits: $4,400 self-only and $8,750 family; the money belongs to the employee.
FSA (Flexible Spending Account)	Nessun equivalente (closest: welfare aziendale)	Pre-tax account for medical costs ($3,400 in 2026) or dependent care (raised to $7,500 from 2026). Unused funds are mostly forfeited.
Section 125 / cafeteria plan	Piano di welfare / flexible benefit	The legal document that lets employees pay premiums and FSA contributions pre-tax. Required in writing before pre-tax deductions start.
401(k)	Fondo pensione complementare	Employer retirement savings plan. 2026 employee deferral limit is $24,500, plus $8,000 catch-up from age 50 ($11,250 at ages 60 to 63).
State auto-IRA	Nessun equivalente (closest: silenzio-assenso sul TFR)	Programs such as CalSavers, Illinois Secure Choice, New Jersey RetireReady and New York Secure Choice that require employers without a retirement plan to enroll staff in a state IRA.
Open enrollment	Periodo annuale di adesione	The annual window, usually in November for January plans, when employees choose or change benefits.
Qualifying life event	Evento che consente variazioni	Marriage, birth, loss of other coverage and similar events that let employees change elections mid-year, usually within 30 days (60 for Medicaid/CHIP events).
ACA employer mandate	Nessun equivalente	Employers with 50 or more full-time equivalents (ALEs) must offer affordable coverage (9.96% of income in 2026) or risk penalties of up to $3,340 or $5,010 per employee per year.
Forms 1094-C / 1095-C	Nessun equivalente	ACA reporting for ALEs: 1095-C to employees by March 2, 2026 (or a website notice option), and electronic filing with the IRS by March 31.
ERISA	Nessun equivalente (closest: disciplina dei fondi pensione, D.Lgs. 252/2005)	Federal law governing employer benefit plans: plan documents, fiduciary duties, disclosure and claims procedures.
Form 5500	Nessun equivalente	Annual return for benefit plans (401(k) always; health plans generally at 100+ participants), due the last day of the 7th month after plan year end (July 31).
COBRA	Nessun equivalente	Federal right (20+ employees) for departing employees to keep group health coverage, usually for 18 months, at up to 102% of the premium. Many states have mini-COBRA laws for smaller employers.
Workers' compensation	INAIL	Mandatory insurance for workplace injuries, bought from private carriers or state funds (Texas alone lets private employers opt out).

Italian perspective: A welfare aziendale plan in Italy is a perk; a U.S. health plan is closer to a necessity. Candidates will ask about the employer premium share, the deductible and the 401(k) match before they discuss the bonus.

Glossary: leave

Leave and time off

The U.S. has no federal right to paid vacation, paid holidays or paid parental leave. Protection comes from a patchwork of federal unpaid leave, state paid leave insurance and company policy. The state picture is covered in states.

Term	Italiano	Explanation
PTO (paid time off)	Ferie e permessi retribuiti	A single bank of paid days for vacation and personal use. Not required by federal law; 15 to 20 days is a common professional package.
Accrual / carryover / use-it-or-lose-it	Maturazione / riporto / perdita delle ferie	How PTO is earned and whether it rolls over. California, Montana and Nebraska prohibit forfeiture of earned vacation, so caps must stop accrual instead.
Paid sick leave	Malattia retribuita (a carico datore)	Mandatory in 19 states plus DC in 2026 (including CA, NY, NJ, IL, MA) and many cities, typically 1 hour per 30 worked, up to 40 to 56 hours a year.
FMLA	Nessun equivalente diretto (closest: congedi tutelati)	Up to 12 weeks of unpaid, job-protected leave for employers with 50+ employees within 75 miles, for staff with 12 months and 1,250 hours of service.
PFML (paid family and medical leave)	Congedo parentale / malattia indennizzato (INPS)	State insurance programs paying partial wages during family or medical leave: CA, NJ, NY, RI, WA, MA, CT, OR, CO, and from 2026 DE, MN and ME. Funded by payroll contributions.
State disability insurance (SDI / DBL / TDI)	Indennità di malattia INPS	Partial wage replacement for off-the-job illness or injury in CA, NY, NJ, RI and HI.
Parental / maternity leave	Congedo di maternità / paternità	No federal paid leave. Rights come from FMLA, state PFML and company policy; many employers offer 8 to 16 weeks paid to compete.
PWFA	Nessun equivalente	Pregnant Workers Fairness Act (15+ employees): reasonable accommodations for pregnancy, childbirth and related conditions.
PUMP Act	Riposi per allattamento	Break time and a private non-bathroom space to express breast milk for one year after birth.
Holidays	Festività	11 federal holidays in 2026, but private employers are not required to give them off or pay a premium.
Bereavement leave	Permesso per lutto	Required in some states, for example California (5 days, 5+ employees) and Illinois (up to 2 weeks unpaid, 50+ employees).
Jury duty / voting leave	Permessi per funzioni pubbliche / elettorali	Most states protect jury service and many require time off to vote, sometimes paid (NY: up to 2 hours).

Watch out: In many states (CA, IL, MA, NY by policy, among others) accrued, unused vacation is treated as earned wages and must be paid at termination, much like the Italian indennità per ferie non godute. Write your PTO policy before the first hire.

Glossary: law

Law and compliance

U.S. employment law is enforced through agencies and, above all, private lawsuits. Most statutes apply only above a headcount threshold, summarized in the table in the next-to-last section. See the compliance topic for detail.

Term	Italiano	Explanation
DOL / WHD	Ministero del Lavoro / Ispettorato del Lavoro	The Department of Labor and its Wage and Hour Division, which enforce minimum wage, overtime and FMLA.
EEOC	Nessun equivalente diretto (closest: Consigliera di parità)	Equal Employment Opportunity Commission: receives discrimination charges, investigates and can sue. Most claims must go through it before court.
Title VII	Divieto di discriminazione (D.Lgs. 198/2006, 216/2003)	Bans discrimination based on race, color, religion, sex (including pregnancy, sexual orientation and gender identity) and national origin; applies at 15+ employees.
ADA	Legge 68/1999 (parzialmente)	Americans with Disabilities Act (15+ employees): no disability discrimination and a duty to provide reasonable accommodations through an interactive process.
ADEA	Nessun equivalente specifico	Protects workers aged 40 and over from age discrimination (20+ employees). Releases require special OWBPA wording.
FLSA	Nessun equivalente unico (orario e retribuzione nei CCNL)	Fair Labor Standards Act: minimum wage, overtime, exempt status, child labor and recordkeeping.
NLRA / NLRB	Statuto dei Lavoratori (Titolo III, in parte)	Protects "concerted activity" by employees, union or not, such as discussing pay. Overbroad confidentiality or social media policies can violate it.
OSHA	D.Lgs. 81/2008 (sicurezza sul lavoro)	Workplace safety agency. Employers with 11+ employees in non-exempt industries keep injury logs (Forms 300, 300A, 301).
Protected class	Fattori di discriminazione (not "categorie protette")	A characteristic protected by law: race, sex, age 40+, disability, religion and more; states add others such as marital status or hairstyle.
Retaliation	Ritorsione / licenziamento ritorsivo	Adverse action against someone who complained, took leave or cooperated in an investigation. It is the most common charge filed with the EEOC.
EEO-1 report	Rapporto biennale sul personale (art. 46 D.Lgs. 198/2006)	Annual workforce demographics report for employers with 100+ employees. In flux: the EEOC proposed abolishing it in July 2026; keep collecting data until a final rule.
Employee handbook	Regolamento aziendale / codice disciplinare	Company policies (PTO, conduct, harassment, leave). Should state that it is not a contract and include state-specific supplements.
Labor law posters	Affissioni obbligatorie	Federal and state notices that must be displayed at the worksite and shared electronically with remote staff.
Harassment prevention training	Formazione antimolestie	Mandatory in CA (5+ employees, every 2 years), NY (annual), IL (annual), CT, DE and ME, plus NYC and Chicago.
PAGA	Nessun equivalente	California's Private Attorneys General Act, which lets employees sue for Labor Code penalties on behalf of the state; a major source of wage-and-hour exposure.

Italian perspective: In Italy the main risk in a dismissal is the judge's review of the reason. In the U.S. the reason is rarely reviewed on its own merits, but a dismissal that looks discriminatory or retaliatory can cost far more than an Italian indennità risarcitoria, because juries can award compensatory and punitive damages.

Glossary: immigration

Immigration and work authorization

Every U.S. employee, citizen or not, must prove identity and work authorization. Cygic does not provide immigration or legal advice; we connect clients with trusted immigration attorneys. See the immigration topic.

Term	Italiano	Explanation
Form I-9	Nessun equivalente (closest: verifica del permesso di soggiorno)	Employment eligibility form for every new hire: Section 1 by the first day of work, Section 2 (document review) within 3 business days. Use the 01/20/25 edition (expires 05/31/2027).
E-Verify	Nessun equivalente	Online federal check of I-9 data. Voluntary federally, but mandatory for many private employers in GA (11+ employees), NC (25+), FL (25+) and several other states.
SSN (Social Security Number)	Codice fiscale (per il lavoro)	Nine-digit number used for payroll and tax reporting. A foreign worker can start work before receiving it, but must apply.
EAD	Permesso di lavoro	Employment Authorization Document (card) issued by USCIS to spouses, students and others.
B-1 / ESTA	Visto d'affari / Visa Waiver	For meetings, negotiations and conferences only. Productive work for the U.S. business is not allowed.
L-1A / L-1B	Visto per trasferimento infragruppo	Transfer of a manager (L-1A) or specialized-knowledge employee (L-1B) who worked 1 continuous year in the last 3 for the related foreign company.
E-1 / E-2	Visto per trattato commerciale / investitori	Treaty trader and treaty investor visas, available because Italy has the required treaty. The U.S. company must be at least 50% Italian-owned; validity for Italians is up to 60 months.
H-1B	Nessun equivalente (closest: Carta Blu UE)	Specialty occupation visa subject to an annual lottery (wage-weighted from FY2027). A $100,000 payment imposed by proclamation (extended to September 2027) was vacated by a federal court in June 2026 and is not being collected while the appeal continues; verify before filing.
O-1	Visto per talenti straordinari	For people with extraordinary ability, shown by awards, press, high pay and similar evidence. No lottery.
J-1 trainee / intern	Tirocinio all'estero	Exchange visa for structured training programs through a designated sponsor, up to 18 months for trainees.
LCA / prevailing wage	Nessun equivalente (closest: minimi tabellari)	Labor Condition Application required for H-1B: the employer must pay at least the prevailing wage for the job and area.
Green card / PERM	Permesso di soggiorno permanente	Permanent residence. Employer sponsorship usually requires PERM labor certification, a process that often takes 2 years or more.
Certificate of coverage	Certificato di distacco (convenzione Italia-USA)	Issued by INPS under the U.S.-Italy Social Security agreement: a seconded employee stays in Italian social security and is exempt from U.S. FICA, with no fixed 5-year limit (the Italy agreement uses a nationality rule).
Shadow payroll	Nessun equivalente	A parallel U.S. payroll run only to withhold and report U.S. income tax for an assignee still paid from Italy.

Glossary: exits

Exits and terminations

At-will employment makes dismissal procedurally easy, but final pay deadlines, benefit notices and the risk of discrimination claims require discipline. See the exits topic for state-by-state detail.

Term	Italiano	Explanation
Termination for cause / without cause	Licenziamento per giusta causa / giustificato motivo	In at-will employment the distinction matters mainly for contracts, severance plans, equity and unemployment benefits, not for the validity of the dismissal.
Wrongful termination	Licenziamento illegittimo	A dismissal that breaks a contract, public policy or anti-discrimination or retaliation law. There is no general "unjustified dismissal" claim.
Two weeks' notice	Preavviso	A custom, not a legal duty, for resignations. The employer may accept the resignation immediately, but check state pay rules.
Layoff / RIF	Licenziamento per motivo oggettivo / collettivo	Reduction in force for business reasons. Selection criteria should be documented and checked for disparate impact.
WARN Act	Procedura di licenziamento collettivo (L. 223/1991)	60 days' notice for plant closings or mass layoffs at employers with 100+ employees; state mini-WARN laws are stricter (NY and NJ: 90 days).
Severance	Incentivo all'esodo (not TFR)	Payment usually given only in exchange for a release of claims. It is not required by federal law, except under New Jersey's mass layoff rule.
Separation agreement and release	Verbale di conciliazione in sede protetta	Contract in which the employee waives claims in exchange for severance. No public official is needed, but specific wording is.
OWBPA	Nessun equivalente	For employees aged 40+: 21 days to consider (45 in a group program), 7 days to revoke and required disclosures.
Final paycheck	Competenze di fine rapporto	Deadline set by the state: immediately in CA at dismissal, next regular payday in NY, NJ and IL, 6 days in TX after a dismissal.
PTO payout	Indennità per ferie non godute	Required in CA, MA, IL and other states; elsewhere depends on written policy.
COBRA election notice	Nessun equivalente	Notice offering continued health coverage; the employee has 60 days to elect.
Unemployment insurance (UI)	NASpI	State benefits for workers who lose their jobs through no fault of their own; claims affect your SUTA rate.
Constructive discharge	Dimissioni per giusta causa (approximately)	A resignation forced by intolerable conditions, which courts treat as a dismissal.

Quick reference

Headcount thresholds and false friends

Many U.S. laws start at a specific employee count. Headcount generally includes part-time staff and, for many federal laws, all U.S. employees of related companies; state laws often count differently. Use this table as a planning tool, not a legal determination.

Employees	What starts to apply (federal unless noted)
1+	FLSA, Equal Pay Act, I-9, NLRA, OSHA general duty, workers' compensation, new-hire reporting; CA harassment training at 5+; state auto-IRA in CA from 1 employee
11+	OSHA injury logs (non-exempt industries); Georgia E-Verify
15+	Title VII, ADA, PWFA, GINA
20+	ADEA (age 40+), federal COBRA
25+	E-Verify for private employers in FL and NC
50+	FMLA (within 75 miles), ACA employer mandate and 1094-C/1095-C reporting (FTEs); NY mini-WARN; Delaware harassment training
100+	Federal WARN, EEO-1 (while it exists), California pay data report (100+ total with at least 1 in CA)

False friends for Italian readers

"Categorie protette" is not "protected class". In Italy the term means the hiring quotas of Law 68/1999. In the U.S. a protected class is any characteristic, such as age or religion, that cannot be the basis for decisions.
Severance is not TFR. TFR accrues automatically and is always paid. U.S. severance is discretionary and is normally paid only in exchange for a release.
"Contract" does not mean "contratto di lavoro". Most U.S. employees have no employment contract. Saying "your contract" in writing can create one by accident.
"Exempt" does not mean "dirigente". A junior analyst earning $80,000 is usually exempt; an overtime-eligible factory supervisor may earn more.
"Probation" has no legal bite. A U.S. probationary period does not change the ability to dismiss, and ending it can imply a promise of job security.
"Benefits" are not "fringe benefits". In the U.S., benefits usually mean health, retirement and insurance, not the company car or meal vouchers.

Step by step

Checklists

How toMake your first U.S. hire: from entity or EOR to first payroll

Choose the employment model. For one to five hires, or to test the market, an EOR can employ the person within about a week. From around six or seven hires, or when you sell and sign contracts in the U.S., your own entity is usually cheaper. A PEO needs your own entity but outsources HR. See setup.
If you go with an entity, form it. Most Italian groups form a Delaware C-corporation or LLC through a U.S. attorney or formation service (about $1,500 to $5,000 with legal help). Then register as a foreign company in each state where employees work (for example New York, Texas or California).
Get an EIN. Apply to the IRS with Form SS-4. Without a U.S. SSN or ITIN for the responsible party, apply by fax or phone; fax usually takes about 4 business days. Note the Form 5472 filing obligation for foreign-owned U.S. companies ($25,000 minimum penalty).
Open a U.S. bank account. Payroll providers debit a U.S. account for net pay and taxes. Allow 2 to 6 weeks, because banks may require an officer in person and KYC documents on the Italian parent.
Register for state payroll accounts. Register for state income tax withholding (not needed in TX or FL) and state unemployment insurance in each work state, plus local taxes where relevant (Ohio municipalities, Philadelphia, some Pennsylvania localities). Allow 1 to 4 weeks; your payroll provider can often file for you.
Buy workers' compensation and required state disability coverage. Buy a workers' compensation policy before the first day of work. In New York you also need a disability (DBL) and Paid Family Leave policy; in CA and NJ, SDI and family leave insurance are collected through payroll.
Pick a payroll provider and set the pay frequency. Choose biweekly or semimonthly and check state minimums. Enroll in EFTPS for federal tax deposits; new employers are usually monthly depositors.
Engage a benefits broker. Brokers are usually paid by carriers. Small-group health quotes need an entity and a census, and plans typically start on the 1st of a month, so start 30 to 60 days before the hire date. Consider a 401(k) or register for the state auto-IRA (CA, IL, NJ, NY and others).
Write the core policies. Prepare a short handbook: at-will statement, PTO, sick leave to state standards, anti-harassment with a complaint procedure, expense reimbursement (mandatory in CA and IL for business expenses), remote work and confidentiality.
Recruit compliantly. Include a pay range in postings where required, do not ask about salary history in banned states, and follow FCRA and fair-chance rules for background checks. Cygic can run the search and connect you with employment counsel.
Issue the offer letter. Use the offer letter checklist below, with state pay notices attached, and have counsel review the first template.
Complete onboarding paperwork. I-9, W-4, state withholding form, new-hire report and benefit enrollment, following the onboarding checklist below.
Display posters and deliver notices. Post federal and state posters at the worksite, and send electronic versions to remote staff.
Run the first payroll. Enter the employee at least 3 to 5 business days before payday, check the first pay stub line by line (taxes, state disability, benefit deductions), and confirm the tax deposit went through. Keep payroll records for at least 4 years.
Put next year on the calendar. Add the annual compliance calendar below, and book the first review of W-2 data for early January.

How toComplete onboarding paperwork on time

Before day 1: send the paperwork package. Once the offer is accepted, send (electronically is fine) the W-4, the state withholding form, direct deposit form, handbook acknowledgment, PIIA and state notices. You may let the employee complete I-9 Section 1 after acceptance, never before.
Day 1 at the latest: I-9 Section 1. The employee completes and signs Section 1 no later than the first day of employment. Do not tell them which documents to present, and do not ask for more documents than required.
Within 3 business days: I-9 Section 2. The employer examines original List A, or List B plus List C, documents in person (or via the DHS remote alternative if you are enrolled in E-Verify) and completes Section 2 by the end of the third business day after the first day of work. Example: start Monday, deadline Thursday.
If enrolled, create the E-Verify case. Create the case within 3 business days of the start date. It is mandatory for many employers in GA, NC, FL and other states, and for federal contractors.
Before the first payroll: Form W-4. Collect the federal W-4. If it is not returned, withhold as single with no adjustments. W-4s claiming exemption expire and must be renewed by February 15 each year.
Before the first payroll: state withholding form. CA DE 4, NY IT-2104, NJ NJ-W4, IL IL-W-4, GA G-4, NC NC-4, OH IT 4, MA M-4. Texas and Florida have no state income tax. Remote staff in another state need that state's form.
Within 20 days: new-hire report. Report name, address, SSN, start date and employer EIN to the state new-hire directory within 20 days (the federal standard used by NY, NJ, CA, TX, IL, FL, NC and OH). Some states are faster: Georgia 10 days, Massachusetts 14 days. Most payroll providers do this automatically; confirm it.
At hire: state pay notices. New York requires a written pay notice (LS 54 or LS 59) in English and the employee's primary language, and California requires the Labor Code 2810.5 notice. New Jersey, Illinois and others have their own required notices and pamphlets.
At hire: state leave and disability notices. In CA give the SDI (DE 2515) and Paid Family Leave (DE 2511) pamphlets, workers' compensation information and the sexual harassment pamphlet. In NY and NJ give the Paid Family Leave and disability notices.
Within 14 days: Marketplace notice. Give every new employee the ACA Health Insurance Marketplace notice within 14 days of the start date, even if they are not eligible for your plan.
Benefits enrollment window. Most plans give new hires 30 days to enroll (check your plan document). ACA caps any eligibility waiting period at 90 days. Provide the SBC and enrollment materials at the start of the window.
Within 90 days of coverage: COBRA general notice. The plan administrator (usually through the carrier or a vendor) sends the COBRA initial notice within 90 days after coverage begins, at 20+ employees. Include CHIP, HIPAA privacy and WHCRA notices.
First weeks: training. New York requires harassment training at hire and every year; California requires it within 6 months of hire for supervisors and staff; Illinois annually.
File and retain. Store I-9s separately from personnel files, and keep them for 3 years after hire or 1 year after termination, whichever is later. Keep payroll and tax records for at least 4 years.

How toWrite an offer letter: the essentials

Position and reporting line. Job title, manager and a one-line role summary. Keep detailed duties in the job description so they can change.
Start date and work location. State the office or remote state. The work location decides which state's wage, tax and leave laws apply.
Classification. Say whether the role is exempt or non-exempt and full-time or part-time. For non-exempt roles, give the hourly rate and state that overtime is paid.
Base pay. Give salary per pay period and the annualized amount, plus pay frequency. Avoid wording like "$150,000 per year guaranteed", which some courts have read as a one-year commitment.
Variable pay. Describe the bonus target and say it is discretionary, or refer to a written commission plan (required in writing in CA and several other states). Say whether the employee must be employed on the payout date.
Equity. If offered, say "subject to approval by the board and to the plan and award agreement", and do not promise tax treatment.
Sign-on and relocation. State amounts and any repayment (clawback) terms if the employee leaves within, for example, 12 months, while respecting state wage deduction limits.
Benefits summary. Say "eligible to participate according to the terms of the plans, which may change". Mention health, 401(k) and match, and when coverage starts.
Time off. Give the PTO allowance or policy reference, sick leave in line with state law, and the holiday schedule.
At-will statement. Say clearly that employment is at-will and that only a signed writing by an authorized officer can change this. Montana employees need a different approach.
Contingencies. Background check (with FCRA-compliant process), I-9 verification, signed PIIA, and for foreign nationals, visa approval.
Restrictive covenants. Refer to a separate agreement. Check state law first: non-competes are void in CA, ND, OK and MN, and Illinois, Washington, Massachusetts and others set salary thresholds, notice periods or consideration rules.
State attachments. Attach the NY pay notice, the CA 2810.5 notice, or other required forms.
Entire agreement and acceptance. Say the letter replaces earlier discussions, set an acceptance deadline (usually 3 to 5 business days) and add signature lines. Keep the signed copy in the personnel file.

How toFollow the annual compliance calendar, month by month

January. Furnish W-2s to employees and file with the SSA by January 31. File 1099-NEC for contractors by January 31. File Q4 Form 941 and annual Form 940 by January 31 (940 by February 10 if all FUTA was deposited on time). When the date falls on a weekend it moves to the next business day (February 1 in 2027). Update payroll for new minimum wages, wage bases and state contribution rates effective January 1. If you have employees in states with their own health coverage mandate (CA, NJ, MA, RI, DC), check the state reporting deadlines, some of which fall in January.
February. W-4 exemption claims expire February 15. From February 1 to April 30, post OSHA Form 300A if you keep injury logs. Paper 1094-C/1095-C filers (fewer than 10 information returns in total) file by February 28.
March. ALEs furnish Form 1095-C by the extended date (March 2 in 2026) or post the website notice option. File 1094-C/1095-C electronically with the IRS by March 31. Establishments required to submit OSHA 300A data electronically do so by March 2.
April. File Q1 Form 941 by April 30. OSHA 300A posting ends April 30. Review Q1 state unemployment filings (most states follow the same quarterly calendar).
May. California pay data report for employers with 100+ employees (second Wednesday of May; May 13 in 2026). Historically the EEO-1 portal opened in spring; watch EEOC announcements.
June. EEO-1 Component 1 (100+ employees) was due June 24 in 2025. For 2025 data, the EEOC proposed abolishing the report on July 23, 2026 and had not announced a filing window at the time of writing, so keep data ready and verify the current status (the regulation's default deadline is September 30). Run mid-year 401(k) nondiscrimination testing checks.
July. File Form 5500 for calendar-year benefit plans by July 31, or file Form 5558 for an extension to October 15. Self-insured health plans and HRAs pay the PCORI fee on Form 720 by July 31 ($3.84 per covered life for plan years ending on or after October 1, 2025). File Q2 Form 941 by July 31. Several cities raise minimum wages on July 1.
August. Receive renewal quotes from your broker, check ACA affordability for next year, and plan open enrollment.
September. Distribute the Summary Annual Report for calendar-year plans by September 30 (or by December 15 if the 5500 was extended). Confirm that the fiscal-year budget covers next year's raises and benefit costs.
October. Send the Medicare Part D creditable coverage notice before October 15. File Q3 Form 941 by October 31. File extended Forms 5500 by October 15.
November. Hold open enrollment (usually 2 to 3 weeks) with SBCs and updated Section 125 elections. Confirm next year's FSA and HSA limits in payroll.
December. Process year-end payroll: taxable fringe benefits, bonuses, final deposits. Order updated federal and state posters for January 1 changes, update the handbook, and check next year's minimum wage and exempt salary thresholds.
All year: harassment training. Track the cycles: NY and IL every year, CA every 2 years, plus new hires (within 6 months in CA). Keep certificates.
All year: posters and notices. Keep federal posters (FLSA minimum wage, EEOC "Know Your Rights", FMLA at 50+, EPPA, USERRA, OSHA) and state posters current, and share electronic copies with remote workers.
Every quarter: state filings. File state withholding and unemployment returns (most due by the last day of the month after quarter end), and state PFML or disability contributions where applicable.

How toHandle a termination or exit

Check the risk before deciding. Review age, leave history, recent complaints, pregnancy or disability accommodations, and any contract, equity or severance plan terms. If the employee recently complained or took protected leave, speak to employment counsel first.
Document the reason. Make sure performance reviews, warnings and business reasons are written and consistent with what you will say. Contradictions are what turn at-will dismissals into lawsuits.
Check group rules. For layoffs, check federal WARN (100+ employees, 60 days) and state mini-WARN laws (NY and NJ 90 days; NJ also requires mandatory severance in covered mass layoffs). For group separation programs with employees aged 40+, prepare OWBPA disclosures.
Prepare the separation agreement. Offer severance only in exchange for a general release. For employees 40+, allow 21 days (45 for groups) to consider and 7 days to revoke. Carve out rights that cannot be waived, such as filing an EEOC charge.
Calculate the final paycheck. Pay by the state deadline: California immediately at dismissal (72 hours if the employee quits without notice), Massachusetts on the day of dismissal, New York, New Jersey and Illinois by the next regular payday, and Texas within 6 days of dismissal. Include accrued PTO where the law or policy requires.
Hold a short, respectful meeting. Two company representatives, a clear message, no debate on the reasons, and the paperwork ready. Remote employees need the same care by video.
Give state notices. Give CA form DE 2320 and the separation notice, the NY Record of Employment (IA 12.3) plus written notice of the termination date and benefit end date within 5 working days, and the NJ BC-10 unemployment instructions. Other states have similar rules.
Start COBRA. The employer notifies the plan administrator within 30 days; the administrator sends the election notice within 14 days; the employee then has 60 days to elect. Use state mini-COBRA for small employers.
Retrieve company property and cut access. Collect laptop, badges and phones, disable accounts at the time of the meeting, and remind the employee in writing of confidentiality and restrictive covenant obligations.
Handle benefits and retirement. Stop deductions, give 401(k) distribution information, handle FSA run-out, and cancel life and disability coverage with conversion notices.
Answer unemployment claims accurately. Respond to state agency requests on time. Challenging legitimate claims can create inconsistent statements you will regret later.
Visa holders. For H-1B employees, pay reasonable return transportation if dismissed early, withdraw the petition with USCIS and remember the 60-day grace period. For L-1 and E-2 staff, speak to the immigration attorney before the meeting.
References and records. Adopt a neutral reference policy (dates and title). Keep personnel, payroll and I-9 records for the required retention periods.

How toSend an Italian employee to the U.S.

Define the arrangement. Choose between a business trip (trasferta, B-1/ESTA with no productive work), a secondment (distacco, with the employee staying on the Italian payroll), or a local U.S. hire with a U.S. contract, possibly suspending the Italian contract. Each option has different visa, tax and social security results.
Check the visa route with an immigration attorney. L-1 requires 1 continuous year of work for the Italian company in the last 3 years and a qualifying U.S. affiliate. E-2 requires the U.S. company to be at least 50% Italian-owned with a substantial investment. H-1B depends on the lottery. Allow 2 to 6 months including the consular interview in Rome, Milan, Naples or Florence. Cygic connects clients with trusted immigration counsel; we do not give visa advice.
Never "just use ESTA". Working productively on ESTA or B-1 risks refusal at the border and future visa problems. Meetings, trade fairs and negotiations are fine; running the U.S. office is not.
Request the certificate of coverage from INPS. Under the U.S.-Italy Social Security agreement, a seconded Italian citizen working for an Italian employer can stay in Italian social security (no 5-year limit, unlike other agreements) and be exempt from U.S. FICA. Apply before departure and give a copy to the U.S. payroll provider.
Check Italian social security for other insurances. The treaty covers pensions. Ask your consulente del lavoro how other contributions and the retribuzioni convenzionali apply, and about INAIL and Law 398/1987 insurance duties for work outside the EU.
Model the tax position. Italian tax residency (183 days, AIRE registration, where the family and interests are) and the U.S. substantial presence test can both apply. The Italy-U.S. treaty (Article 15) exempts U.S. tax only for short stays under 183 days when the cost is not borne by a U.S. entity. See the tax treaty topic and involve a CPA on both sides.
Decide whether you need a shadow payroll. If the U.S. entity bears the cost or the stay is long, U.S. income tax withholding and a W-2 may be required even though pay comes from Italy.
Arrange U.S. health insurance. The Italian SSN does not cover routine care in the U.S. Enroll the employee in the U.S. group plan or an international expatriate plan from the day of arrival, including dependents.
Write the assignment letter. Cover duration, home and host pay, cost-of-living and housing allowance, tax equalization or protection, return trips, family support and what happens at the end of the assignment. For distacco, confirm that the Italian employer's interest in the secondment is documented.
Complete U.S. onboarding. If the employee works for the U.S. entity, the Form I-9 is required, even for a transferee. Apply for the SSN after arrival (usually 2 to 4 weeks), and collect the W-4 and state form.
Plan family matters. L-2 and E-2 spouses are authorized to work incident to status; children need school enrollment; the driving license must usually be converted within the state's deadline.
Handle Italian-side formalities. Your consulente del lavoro handles required communications, payroll changes and AIRE guidance, and should review the effect on TFR, the Italian pension and supplementary funds.
Plan the return or localization. Set a review 6 months before the certificate of coverage or visa expires, and decide on extension, localization to a U.S. contract or repatriation.

FAQ

Frequently asked questions

Is there a U.S. equivalent of the CCNL?

No. Outside unionized workplaces, which cover about 6% of private-sector employees, terms come from federal and state law, the offer letter and company policy. That is why state law matters so much: the same role in California and Texas has different overtime, leave and final pay rules.

Does the U.S. have anything like TFR?

No. There is no statutory end-of-service payment. The closest idea is the 401(k), to which the employer may contribute a match, but the money is invested for retirement and not paid out as a lump sum when employment ends. Severance is optional and normally paid in exchange for a release.

What is the most common onboarding mistake by foreign employers?

Missing the Form I-9 deadlines or completing Section 2 remotely without being eligible for the DHS alternative procedure. Penalties apply per form, even if the employee is fully authorized to work. The second most common mistake is not registering for state withholding and unemployment accounts before the first payroll.

Is the EEO-1 report still required in 2026?

The requirement stays in force until the EEOC adopts a final rule. It published a proposal to abolish it on July 23, 2026, the comment period closed August 24, 2026, and no window for 2025 data had been announced at the time of writing. Employers with 100+ employees should keep collecting voluntary self-identification data and check the EEOC website.

Can an EOR handle everything on the checklists?

An EOR handles I-9, payroll registration, tax filings, W-2s, benefits and most notices, which removes most of the first and fourth checklists. You still own the offer terms, day-to-day management, harassment prevention in practice, and exit decisions, and you should read the EOR contract on termination costs.

How do we translate "dirigente" into U.S. terms?

There is no legal category. A dirigente usually corresponds to an exempt executive with a title such as Director, VP or General Manager, often with an employment agreement setting severance and "good reason" terms. Remember that exempt status depends on salary and duties, not on title.

Our Italian manager will spend three months in New York. Do we need a visa?

It depends on what they do. Meetings, negotiations and trade fairs are generally allowed on ESTA or B-1; managing the U.S. team day to day or doing productive work is not. Speak to an immigration attorney before booking, and check the 183-day treaty rule and the certificate of coverage.

Where can I find state-specific versions of these rules?

See the states topic for NY, NJ, CA, TX, IL, FL, GA, NC, OH and MA, and confirm deadlines with your payroll provider and employment counsel, since many state rules change on January 1 and July 1.

Sources

Last reviewed: October 2026.

Let's build your U.S. team together

Cygic Recruitment hires managers and professionals across the United States for Italian and international companies: from market-entry strategy to search, onboarding and retention.

Information reviewed October 2026. General information only, not legal, tax or immigration advice. Rules change frequently and vary by state; consult qualified professionals.

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