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Workforce Payments Guide United States

Last updated: Dec 24, 2023

United States Dollar (USD)
Payroll Frequency
Monthly / Bi-monthly
Washington, D.C.
Fiscal Year
1 January - 31 December
Employer Taxes
Varies by State
Employee Costs
Varies by State
Central Bank
Central bank of the United States
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3rd Party Payments

Authority  Payment Frequency  Due Date  Payment Method 
US Corporate Taxpayers  Annually  15th day of the fourth month following the close of its tax year  Electronic Funds Transfer 
Form W-2 (Wage and Tax Statement)  Annually  On or before 31 January  Electronic Funds Transfer 
Form 1099 series (Information returns)  Annually  On or before 31 January, 28 February, or 31 March  Electronic Funds Transfer 
Form 1120 series (US Corporation Income Tax Return)  Annually  15 April for C corporations, 15 March for S corporations  Electronic Funds Transfer 
Schedule K-1 (Partner’s Share of Income, Deductions, Credits, Etc.)  Annually  15 March  Electronic Funds Transfer 
Form 1065 (US Return of Partnership Income)  Annually  15 March  Electronic Funds Transfer 
State Tax Returns  Annually  Varies, often 15 April  Electronic Funds Transfer 
Estimated Tax Payments for Corporations  Quarterly  15th day of April, June, September, and December  Electronic Funds Transfer 

Payments Coverage

Papaya Global fully supports payments in USA.

Contractor Payments

Papaya Global supports payments to contractors in the US. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. It is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency

Monthly / Bi-monthly


The Know Your Customer (KYC) process is a set of guidelines allowing banks and other financial institutions to confirm the identity of the organizations and individuals they do business with, ensuring those entities act legally.

The KYC process is crucial in preventing identity theft, fraud, money laundering, and terrorist funding.

Here are the key elements of the KYC process:

  1. Customer Identification Program (CIP): This involves collecting basic information about the customer’s business operations and individuals. It includes the names of the company’s directors, business addresses, national insurance or social security numbers, company numbers, and so on.
  2. Customer Due Diligence (CDD): This involves understanding the customer’s business and assessing the risk level associated with the customer.
  3. Ongoing Monitoring or Enhanced Due Diligence (EDD): This involves monitoring the customer’s transactions and activities to identify any suspicious activities.
  4. Beneficial Ownership Verification: In 2016, the U.S. government issued a rule requiring banks to verify the identities of beneficial owners of legal entity clients such as corporations, LLCs, partnerships, unincorporated non-profits, and statutory trusts.

The exact practices of the KYC process can vary based on the risk profile of the organization and the regulations of the jurisdiction in which they operate.

Banking Regulations

  1. Anti-Money Laundering (AML) regulations
  2. Combating Financial Terror (CFT) regulations
  3. Tax Cuts and Jobs Act (TCJA) reduced the U.S. corporate income tax rate from 35% to 21% and provided a 100% dividends-received deduction (DRD) for certain offshore dividends paid by 10% or more-owned foreign subsidiaries.
  4. Global intangible low-tax income (GILTI) and base erosion anti-avoidance regimes effectively impose minimum taxes on certain foreign income and deductible payments made to related foreign parties.
  5. Penalties on newly inverted companies and obstacles to post-inversion tax planning: These were introduced by the TCJA to deter companies from avoiding U.S. taxes.
  6. Deemed dividends attributable to gains from the sale of CFC stock: This creates tax implications in the context of U.S. partnerships holding a CFC.
  7. Regulation (EU) 2021/1230 on cross-border payments in the European Union states that charges for cross-border payments in euro or in the national currency of participating Member States should be the same as for corresponding payments within a Member State. It also requires payment service providers to provide customers with clear information before a transaction.
  8. Directive (EU) 2015/2366: This directive requires the charges and exchange rate used in cross-border payments to be transparent. It also specifies the information to be given to customers.

Bank Account Opening

To open a company bank account, the following steps and requirements are necessary:

  1. Provide necessary documents. This includes personal information, such as your Social Security number and government-issued photo ID, your business formation documents, and an official IRS EIN (Employer Identification Number), also known as a tax ID number, which is a unique number assigned to your business for tax reporting purposes. The exact business documents you need will vary based on your company structure.
  2. Prepare an opening deposit, which can often be paid by check, credit/debit card, or electronic transfer from another bank account.
  3. Open the account either online, in person, or by phone. Some industries may require in-person account opening.

As for the duration, the online application process could take less than 30 minutes if you have all your documents ready. The verification process could take a day or two, and you’ll typically receive your debit card in the mail seven to 10 business days later.

If you open an account in person, it could take an hour or more to complete your application, but you could get your debit card immediately.

International Banks

The major foreign banks operating in the United States are:

  • HSBC
  • Deutsche Bank
  • TD Bank
  • MUFG Union Bank
  • UBS Bank
  • Santander Bank
  • Bank of China
  • CIBC Bank
  • Barclays Bank
  • State Bank of India

Major Local Banks

The major local banks operating in the country are:

  • Chase Bank
  • Wells Fargo Bank
  • Bank of America
  • U.S. Bank
  • Truist Bank
  • U.S. Bancorp
  • U.S. Bank National Association
  • AgFirst Farm Credit Bank
  • Ally Bank
  • American Express Company
  • American Express Bank
  • FSB
  • American Savings Bank
  • Ameris Bank
  • Armed Forces Bank
  • Bank of Botetourt
  • Bank of Nevada
  • Bank of New Hampshire
  • Bank of New York Mellon
  • Bank of North Carolina
  • Barclaycard US
  • BBVA Compass
  • Bridgewater Bank
  • Capital One
  • CIT Bank
  • City National Bank (California)
  • City National Bank of Florida
  • Citigroup
  • Citizens Financial Group
  • Comerica
  • Commerce Bank, MO
  • Commerce Bancshares, Inc.
  • Credit One Bank
  • DB USA Corporation
  • Dedham Savings Bank
  • Falcon International Bank
  • Falcon National Bank
  • Farm Credit Bank of Texas
  • FirstBank (Lakewood, CO)
  • Fifth Third Bank
  • First National Bank of Omaha
  • First National of Nebraska
  • Five Star Bank
  • Goldman Sachs
  • HSBC Bank USA
  • JPMorgan Chase
  • KeyBank
  • LifeStore Bank
  • Luther Burbank Savings
  • MB Financial Bank
  • Morgan Stanley
  • MUFG Union Bank
  • New York Commercial Bank
  • Norway Savings Bank
  • PNC Bank
  • Regions Bank
  • Sallie Mae (SLM Corp)
  • Sallie Mae Bank
  • Santander Bank, N. A.
  • Security Bank of Kansas City
  • Silicon Valley Bank
  • State Street Corporation
  • SunTrust Banks, Inc.
  • Texas Bank and Trust
  • Texas Capital Bank
  • USAA Bank
  • Wells Fargo & Company
  • Woori America Bank

Payment Tools

The B2C payment tools available in the country include:

  • “Pay to Card”
  • “Global Digital Disbursements”
  • “Cross-Currency ACH”
  • Credit and Debit Cards
  • Digital Wallets like PayPal, Apple Pay, Google Pay, Amazon Pay
  • Bank Transfers (Electronic Funds Transfers or Direct Debit Payments)
  • Mobile Payments
  • Buy Now Pay Later Services like Klarna and Afterpay
  • PreferPay ®
  • Direct to Debit (enabled by Visa Direct)
  • ACH
  • manual check options
  • Visa Direct
  • Mastercard Send
  • bank-to-bank P2P transfer scheme Zelle
  • The Clearing House’s RTP real-time payments platform
  • Bank-based payment methods such as ACH and wire transfers
  • Other services like PayPal, Amazon, Moneygram, and prepaid cards from companies such as GreenDot and NetSpend offered by Ingo Money.

Checkbook also provides services such as ACH transfer, Mastercard Send and Visa Direct, or to virtual prepaid card accounts.


In the United States, it is currently impossible to directly pay employees with cryptocurrencies, according to the U.S. Department of Labor regulations and the Fair Labor Standards Act (FLSA). The FLSA requires “payment of the prescribed wages, including overtime compensation, in cash or negotiable instrument payable at par.”

It has yet to be clarified whether cryptocurrency is considered functionally similar to foreign currency and, therefore, a negotiable instrument payable at par.

However, employees can have their wages, paid in U.S. dollars, converted into cryptocurrency before the funds are deposited into their accounts. The IRS states that virtual currency paid to an employee in exchange for services is considered wages for federal employment tax purposes.

The fair market value of virtual currency paid as wages, measured in U.S. dollars at the date of receipt, is subject to federal employment taxes and must be reported on Form W-2. Federal taxes, however, cannot currently be paid with virtual currencies.

Employers must also consider relevant state and local laws when formulating compensation plans. Many states specify how employers can and cannot pay wages. The volatility of cryptocurrency could cause problems with minimum wage and overtime laws.

Employers looking to participate in this new frontier may consider paying wages first in U.S. currency and then converting them to cryptocurrency if the employee chooses, free of charge to the employee.

As regulation of cryptocurrencies is still an ongoing process, Congress might pass legislation authorizing cryptocurrency to pay wages in the future.

Stay up to date on workforce payments & employment law changes

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