Employer of record services
This guide will tell you everything you need to know about how employer of record services work, what kinds of services employers of record perform, and how to compare different employers of record services providers to find the right fit for your business.
What is an employer of record (EOR)?
An employer of record (EOR) is a global employment services provider that helps you employ people legally in other countries. Your EOR handles payroll, benefits, taxes, stock options, and local compliance, freeing you to focus on your team.
Businesses rely on employers of record to help them hire employees in multiple countries. With an EOR, a company can expand operations into another country without having to set up a local entity, which can be expensive and take months or longer to accomplish. Working with an EOR allows businesses big and small to employ and pay workers in other countries quickly and affordably.
Want to learn more about employers of record, international employment, and global payroll? We have put together this helpful guide to help you understand everything you need to know about EORs and how they operate.
What are employers of record (EOR) services?
Employers of record services allow companies without local legal entities to employ workers legally in other countries. These services mostly fall under the functions of human resources and legal teams, including payroll, benefits, taxes, stock options, and compliance.
Other employers of record services may include advisory services for companies looking to expand their teams into new markets. For example, an EOR may offer advice on how to integrate workers or how to create a compensation plan.
Employers of record services typically do not involve “co-employment,” an arrangement in which two companies employ the same person simultaneously. In the country where the employee works, the EOR is the only employer on paper. In practice, however, the EOR does not have any involvement in the day-to-day life of the employee beyond HR functions like payroll and benefits administration.
What does an employer of record (EOR) do?
- Allow businesses to hire full-time workers in other countries legally
- Run payroll for employees in other countries
- Handle benefits administration for global workers
- Manage international contractors
- Distribute employee stock options across national borders