What to Do When You Want to Expand Your Australian Business to the USA

Many Australian businesses reach a point where the domestic market starts to feel like a ceiling. The US is the obvious next move for many. It is the world’s largest consumer economy, it speaks your language, and having a foothold in North America carries its own momentum. However, the reality of getting there tends to be more complicated than the ambition.

Expanding to the US is not impossibly difficult, but it comes with challenges that catch businesses off guard. These include employment laws that vary state by state, benefit expectations that look nothing like what you are used to back home, and total employer costs that can blow out a budget if you have not modelled them properly. The good news is that none of these are insurmountable, provided you go in with the right information and the right partner.

This guide walks through the practical steps Australian companies need to take when they are serious about making a US hire, from understanding the legal landscape to modelling real costs before you commit.

Know What You Are Getting Into

Australia has a relatively straightforward employment framework. Fair Work sets the rules, modern awards sit underneath it, and while there is always nuance, most employers in this country operate within a single national system. The US works differently.

Federal law establishes a baseline, but individual states layer their own requirements on top of it. Minimum wage, leave entitlements, non-compete enforceability, and termination procedures can all differ significantly depending on where your employee is based. California, for instance, is famously strict on worker protections and has its own suite of compliance requirements. Texas, by contrast, tends to be more employer-friendly. Hire someone in New York and you operate under a different set of rules again.

For an Australian company used to a single national framework, this fragmented system can be a genuine shock. It is not enough to understand US employment law in general. You need to understand it at the state level and ideally at the city level, since some municipalities add their own requirements on top of state rules.

Determine the True Cost Before You Commit

One of the most effective ways to navigate this complexity is through a Workforce Intelligence Solution. Safeguard Global provides a free tool called Intelligent Workforce that allows Australian businesses to explore markets before committing to new international hires.

This AI-powered platform is built on live data rather than scraped estimates. It provides:

• International Salary Benchmarks: Instant access to what roles actually pay in specific US cities.
• Total Employment Costs: A breakdown of every expense, including FICA taxes, unemployment insurance, and workers’ compensation.
• AI-Ranked Recommendations: Data-backed suggestions on where to hire based on cost, talent availability, and compliance signals.

Understand the True Cost of a US Hire

Salary benchmarks in the US look different to what Australian employers expect. A senior software engineer in San Francisco commands a very different package to the same role in Nashville.

Beyond base salary, US employers contribute to costs that have no direct equivalent in the Australian system. There is no superannuation, but there are employer contributions to Social Security and Medicare, federal and state unemployment insurance, and workers’ compensation. Health insurance is also a significant obligation. Unlike Australia, where Medicare provides universal coverage, US employees generally expect their employer to subsidise private health coverage, including dental and vision.

The table below illustrates how total employment costs can vary across different US locations for a mid-level professional role:

US State / City	Avg. Annual Employer Cost (USD)	Talent Availability	Compliance Complexity
New York, NY	USD 130,000+	Very High	High
San Francisco, CA	USD 140,000+	Very High	High
Austin, TX	USD 90,000–110,000	High	Moderate
Denver, CO	USD 85,000–105,000	High	Moderate
Nashville, TN	USD 80,000–100,000	Moderate	Low–Moderate

Source: Safeguard Global Intelligent Workforce benchmarks. Figures are indicative.

Decide How You Will Hire: Entity vs. EOR

Setting up a US legal entity One option is to establish your own US legal entity, typically a corporation or LLC. This route gives you maximum control and works well once you operate at a meaningful scale. The trade-off is that it is slow, expensive, and administratively intensive. Depending on the state, you could be looking at months of set-up time and ongoing compliance obligations.

Using an Employer of Record (EOR) An EOR is a third-party organisation that employs workers on your behalf. The EOR handles payroll, tax withholding, benefits, and local compliance. You retain full control over the day-to-day work. For Australian companies making their first US hire, an EOR is typically the faster and lower-risk path. With a provider like Safeguard Global, you can have a US-based employee operational in a matter of weeks without the overhead of entity setup.

Choose the Right US Location for Your Roles

Australian businesses entering the US do not have to default to the obvious cities. While New York and San Francisco have the talent, they also have the highest costs.

Cities like Austin, Denver, and Phoenix have seen significant growth in professional talent. Costs are lower, and the compliance burden is often more manageable. Using the Intelligent Workforce tool, you can compare these locations side by side. Instead of relying on intuition, you can make a data-backed decision about where your budget will go further.

Stay Compliant Without a US Entity

Compliance is where many Australian companies get caught out. Paid family leave requirements vary by state. Termination procedures and salary transparency laws differ depending on where your employee lives.

If you hire through an EOR, the responsibility for navigating this complexity sits with the provider. Safeguard Global operates with in-country experts across all 50 states. This ensures the advice you get is grounded in local reality, which is vital for an Australian company that does not have a US legal team on staff.

The Best EOR Providers for Australian Businesses Expanding to the US

Choosing the right EOR partner matters as much as the decision to use one. The providers below are among the most commonly considered options for Australian businesses entering the US market, though they differ significantly in terms of experience, geographic depth, and suitability for companies at your stage.

1. Safeguard Global

      

Safeguard Global is the strongest choice for Australian businesses making a serious move into the US. With 18 years of experience, coverage across 187 countries, and in-country compliance experts operating across all 50 US states, it brings a level of depth that most competitors cannot match. Its Intelligent Workforce platform gives businesses live salary benchmarks and total employment cost modelling before they commit to a single hire, which is a meaningful advantage when entering a market as variable as the US. Pricing runs at approximately AUD $500–$800 per employee per month, competitive for the scope of service on offer.

2. Oyster

Oyster is a well-known EOR platform with a focus on remote-first hiring. It works reasonably well for businesses hiring in straightforward locations, though its compliance support tends to rely more heavily on platform automation than in-country expertise. For Australian companies navigating the complexity of US state-level employment law for the first time, that distinction matters.

5. Remote

Remote is a well-funded EOR platform that has grown quickly on the back of strong branding and a polished product experience. Its platform works well for companies hiring in common markets, though it is largely technology-driven rather than grounded in dedicated in-country compliance teams. Customer support response times are a recurring complaint among users, which is worth bearing in mind for businesses that may need hands-on assistance when navigating unfamiliar employment territory. For Australian businesses entering the more complex corners of US employment law, that combination can be a limitation worth weighing up.

4. Justworks

Justworks operates as a professional employer organisation (PEO) rather than a traditional EOR, which means it co-employs your US workers and bundles HR and benefits administration into a single platform. It is a practical option for businesses that want a streamlined US payroll solution, though its model is primarily built around companies that already have a US entity. For Australian businesses without one, it is a less natural fit.

5. WorkMotion

WorkMotion is a European-founded EOR platform with growing global coverage. It offers a straightforward hiring workflow and transparent pricing, making it accessible for smaller teams. Its US offering is functional, though it does not carry the same depth of in-country expertise or data infrastructure as providers with a longer North American presence.

6. Gloroots

Gloroots is a newer entrant in the global EOR space, positioning itself around fast onboarding and competitive pricing. It may suit early-stage businesses looking to test a market quickly at lower cost. That said, with less of an established track record in US compliance, it carries more uncertainty for companies where getting employment law right from day one is non-negotiable.

7. G-P (Globalization Partners)

G-P is one of the larger names in the EOR market and offers broad global coverage including the US. It is a credible option, particularly for enterprise-scale businesses with established international HR functions. For Australian SMEs making a first US hire, however, its pricing and enterprise orientation can make it a heavier lift than the situation requires.

Move from Plan to Hire

The US market rewards businesses that come in prepared. Knowing your true cost of employment before you hire, choosing locations based on data, and having a compliance-ready structure are the factors that separate a smooth expansion from an expensive lesson.

Safeguard Global’s Intelligent Workforce tool is free to use and provides the intelligence needed to plan your move. Once you are ready, their EOR service provides the infrastructure to execute. It is a sensible place for any Australian business to start their North American journey.