Raleigh, the capital of North Carolina, has transformed into one of the most attractive business destinations in the United States. Known as part of the Research Triangle, alongside Durham and Chapel Hill, Raleigh is home to world-class universities, a thriving innovation ecosystem, and a diverse economy spanning technology, life sciences, finance, and education.
Over the past decade, Raleigh has consistently ranked among the best U.S. cities for business and careers. Its combination of affordability, talent availability, and quality of life makes it a prime destination for companies seeking to hire in 2025.
This guide explores everything employers need to know about hiring in Raleigh, from legal requirements and taxation to recruitment strategies and employee benefits.
How to Hire in Raleigh Easily in 2025
Companies expanding into Raleigh have two main approaches for hiring:
- Establishing a U.S. entity in North Carolina, which requires incorporation, tax registration, and full compliance with state and federal labor laws.
- Partnering with an Employer of Record (EOR), which enables businesses to hire employees in Raleigh without setting up a local entity. The EOR handles payroll, benefits, contracts, and compliance, while the company manages the employee’s daily responsibilities.
The hiring process in Raleigh generally includes:
- Registering for employer tax accounts at both federal and state levels.
- Drafting compliant job descriptions and contracts.
- Following federal labor standards as well as North Carolina’s state-specific laws.
- Offering competitive benefits to attract talent in Raleigh’s fast-growing industries.
- Leveraging local universities, job boards, and professional associations to recruit candidates.
Why Hire in Raleigh? The Benefits of Hiring in Raleigh
Strategic Location
Raleigh is strategically positioned in the southeastern United States, providing access to major markets on the East Coast and beyond. Its location makes it a strong hub for logistics, research, and technology. Raleigh-Durham International Airport (RDU) offers direct connections to key U.S. cities and international destinations, supporting businesses with global reach.
Highly Educated Workforce
Raleigh benefits from the Research Triangle’s academic ecosystem, with Duke University, the University of North Carolina at Chapel Hill (UNC), and North Carolina State University (NC State) producing top graduates in engineering, medicine, biotechnology, and business. This network of institutions makes Raleigh one of the most talent-rich regions in the United States.
Diverse Economy
Raleigh’s economy spans multiple sectors, including technology, biotechnology, pharmaceuticals, education, financial services, and government. The presence of research institutions and corporate R&D centers makes it especially strong in innovation-driven industries.
Balanced Cost Advantage
Compared to larger hubs like New York, Boston, or San Francisco, Raleigh offers significantly lower costs of living and operating a business. Housing, utilities, and office rents are more affordable, allowing employers to offer competitive packages while maintaining cost efficiency.
Legal Requirements for Hiring Employees in Raleigh
Employers hiring in Raleigh must comply with both federal labor laws and North Carolina state regulations.
Employment Contracts
North Carolina follows the “at-will” employment principle, meaning either the employer or the employee may terminate the relationship at any time, provided the termination is not discriminatory or retaliatory. Written contracts are not required but are commonly used to clarify compensation, benefits, and job duties.
Working Hours and Overtime
The standard workweek in Raleigh is 40 hours. Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid 1.5 times their hourly rate for hours worked beyond 40 in a week. Employers must also comply with state requirements on breaks and wage documentation.
Probation Periods
Probationary periods are not legally mandated in North Carolina but are commonly applied by employers. A 90-day probation period is typical to evaluate new employees.
Termination of Employment
As an at-will state, North Carolina allows employers to terminate employment without cause, provided the decision does not violate federal or state protections against discrimination. Severance pay is not legally required but may be provided voluntarily or stipulated in company policies.
Taxation and Social Security Contributions in Raleigh
Employers in Raleigh must meet both federal tax obligations and North Carolina state-specific payroll requirements.
1. Individual Income Tax (IIT)
North Carolina levies a flat state income tax rate of 4.5% (2025). Employees must also pay federal income tax, which ranges from 10% to 37% depending on earnings. Employers must withhold both state and federal taxes from employee wages.
2. Employer Contributions to Social Insurance
Employers in Raleigh contribute to the following mandatory programs:
- Social Security: 6.2% of wages (matched by employees).
- Medicare: 1.45% of wages (matched by employees).
- Federal Unemployment Tax (FUTA): 0.6% on the first $7,000 of wages after credits.
- North Carolina State Unemployment Insurance (SUI): Employer rates vary depending on industry classification and claims experience.
3. Contribution Bases
Social Security contributions are capped at the federal wage base (projected at $168,600 in 2025). Medicare has no cap, though high earners must pay an additional 0.9% surtax on wages above $200,000.
Work Permits and Other Requirements for Hiring Foreign Workers in Raleigh
Raleigh’s global reputation for innovation attracts many foreign professionals. Employers hiring non-U.S. citizens must comply with immigration laws.
- Visa Sponsorship: Employers often sponsor H-1B visas (specialty occupations), L-1 visas (intra-company transfers), or O-1 visas (extraordinary ability). Sponsorship requires proving the position cannot be filled by a local candidate.
- Labor Condition Application (LCA): For certain visas, employers must file an LCA with the Department of Labor to confirm fair wages and compliance with labor protections.
- E-Verify: Many employers in North Carolina use E-Verify to confirm the employment eligibility of new hires.
- Health and Background Checks: Certain visa categories require background checks and health clearances.
Current Trends and Top Recruitment Strategies in Raleigh
The Raleigh job market is competitive, with growing demand across technology, biotech, and education. Employers can leverage the following strategies:
- University Partnerships: Tapping into NC State, Duke, and UNC ensures access to graduates in high-demand fields like engineering, medicine, and finance.
- Technology and Biotech Recruitment: Raleigh is known for its biotech and IT clusters. Employers should emphasize career growth, innovation, and research opportunities to attract skilled professionals.
- Government and Education Talent: With Raleigh serving as the state capital, government and education remain strong hiring sectors. Companies working with public institutions can benefit from long-term stability.
- Hybrid and Remote Work: Flexible work arrangements remain popular, especially among younger workers in the tech and research sectors.
- Diversity and Inclusion: Raleigh’s diverse population makes inclusive hiring strategies particularly effective.
Hiring Skilled Workers vs. Entry-Level Talent in Raleigh
Hiring Skilled Workers
Skilled professionals in Raleigh, particularly in biotech, healthcare, and IT, often expect strong benefits and career development opportunities. Employers should emphasize professional training, advancement, and work-life balance to attract and retain this talent.
Hiring Entry-Level Talent
Raleigh’s universities and community colleges produce a steady pipeline of entry-level candidates. To attract them, employers should provide mentorship, internships, and structured training programs. Offering career progression pathways improves retention and builds long-term loyalty.
Competitive Benefits in Raleigh
Beyond compensation, benefits play a key role in recruiting and retaining employees in Raleigh. Common benefits include:
- Health, dental, and vision insurance
- 401(k) retirement plans with employer contributions
- Paid vacation and family leave
- Professional development and tuition reimbursement
- Wellness programs, including gym memberships and mental health support
- Flexible or hybrid work models
- On-site or subsidized childcare (increasingly popular in Raleigh’s family-friendly environment)
Hiring Solutions for Foreign Companies in Raleigh
International companies entering the Raleigh market can hire through three primary models:
Independent Contractors: Provides flexibility but requires careful compliance with IRS and North Carolina classification rules to avoid misclassification.
Establishing a U.S. Entity: Allows full control but requires time, resources, and ongoing compliance with state incorporation and tax regulations.
Employer of Record (EOR): The fastest and most efficient solution. An EOR manages payroll, contracts, and HR compliance, enabling foreign companies to hire employees in Raleigh without establishing a local entity.
Trust INS Global to Hire in Raleigh Today
Raleigh offers one of the most promising hiring environments in the United States in 2025. With its strong academic ecosystem, diverse economy, affordable living costs, and growing global profile, the city is a top choice for companies across industries.
At the same time, navigating U.S. and North Carolina labor laws, tax obligations, and immigration requirements can be challenging for foreign employers. That’s where INS Global comes in.
Our Employer of Record (EOR) services in Raleigh make hiring seamless, efficient, and compliant. We handle payroll, benefits, contracts, and HR compliance so you can focus on growing your business and building strong teams.
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