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Frequently Asked Questions
Compliance & Payroll
EOR (Employer of Record) FAQs
What is an Employer of Record (EOR)? Answer: An Employer of Record (EOR) is a service that allows companies to outsource employment responsibilities for their international or remote workers. The EOR becomes the legal employer, handling payroll, taxes, compliance, and HR functions on behalf of the client company.
How does an Employer of Record (EOR) work? Answer: An EOR signs an employment contract with the worker while the client company manages day-to-day work tasks. The EOR takes care of compliance, payroll, benefits, and taxes. It simplifies global employment, especially for companies with international teams.
What's the cost of using an Employer of Record (EOR)? Answer: EOR costs vary based on factors like the country, the number of employees, and the services required. Generally, there's a service fee per employee, which can range from a few hundred to a few thousand dollars per month.
What are the benefits of using an Employer of Record (EOR)? Answer: EOR services ease global expansion, minimize legal and tax risks, ensure compliance, and offer access to benefits. They save time and resources, allowing companies to focus on their core business.
How does an EOR differ from a PEO (Professional Employer Organization)? Answer: While both manage employment functions, a PEO typically shares employer responsibilities, while an EOR fully becomes the employer, taking on all legal obligations and liabilities.
Are there international Employer of Record services available? Answer: Yes, EOR services are designed to handle employment in multiple countries, making it easier for companies to employ and manage workers around the world.
What does EOR stand for? Answer: EOR stands for "Employer of Record."
How do I choose the right EOR service for my company? Answer: To find the right EOR, consider your global needs, specific industry, and services offered by EOR providers. It's crucial to evaluate their track record and reputation.
