Do I need to pay FGTS to employees in the U.S.?

No. FGTS is a Brazilian labor obligation and does not exist in the United States, so an EB-5-linked business does not collect this charge for employees hired on American soil. U.S. labor rules follow their own logic, separate from Brazil’s.

That does not mean there are no obligations: when hiring in the U.S., the business must comply with the rules of the Department of Labor, local payroll taxes and social security contributions, and federal and state laws on wages, overtime, and working conditions. Each state may also have its own requirements, making it important to understand the regulatory landscape where the company will operate.

• FGTS is a Brazilian charge and does not apply to employees in the U.S.
• In the U.S., separate payroll rules, charges, and federal and state laws apply.
• Obligations may vary from state to state.

In practice, the best approach is to structure payroll according to U.S. law, without transposing obligations from Brazil. Because labor rules vary by state and change over time, it is worth confirming current requirements with official sources and working with a local accountant or employment attorney.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.