When a company hires a worker, it takes on all the responsibilities, costs, and liabilities that come along with having that person on staff.
But not all companies want to shoulder that duty. Utilizing an employer of record is an additional choice. All personnel-related duties, such as: are performed by the employer
- Payroll processing and funding
- tax filing and depositing
- dealing with unemployment
- taking care of workers’ compensation
- Creating Forms W-2
- gathering and handling time sheets
It’s up to whom?
Different obligations apply to the company and the employer of record. Let’s begin with the EOR’s client or business. Operations are still under the management of the employer’s company.
Additionally, the company is in charge of compliance and workplace safety. Payroll compliance, tax rules, and employment-related difficulties are all the
An employer of record in the contract staffing industry
The employer of record, as it relates to recruiting firms that offer contract employment, acts as the contractual worker’s actual employer in court. The contract staffing back office, a third party, frequently assumes the role of employer of record.
Recruiters have two options for handling back office tasks: they can handle them themselves or contract the task out to a contract
The world’s largest employer
Employers of record can also be used by other firms that don’t recruit (EORs). A company may use an EOR if it needs to hire a worker from another nation but does not have a presence there.
The individual is still employee by the company, but in that particular locality, the employer of record is in charge of payroll and human resources matters. As a result, the company can grow internationally without having to create a corporation or worry about adhering to
Global EORs are position to be an essential component of the global employment ecosystem for businesses that wish to recruit anybody, anywhere with the increase of remote work trends.
