Employer of Record (EOR) is a service provided by companies that act as the legal employer for a worker on behalf of another company. The EOR takes on responsibilities such as payroll, taxes, and compliance with employment laws, allowing the client company to focus on its core business activities. The worker is considered an employee of the EOR, but performs duties for the client company. This arrangement is often used in situations where a company wants to expand into a new geographic location or to hire independent contractors. Studies show that workers that work from home display greater satisfaction and lower stress levels than workers commuting to the company’s offices. Remote employees enjoy the flexibility that remote work offers and often choose to live in different cities or states than their employer. As technology and culture evolve, there is less need for employees to be… [Read More]

It is not uncommon to hear employer of record services equated with staffing services. Although the two are mutually beneficial, an employer of record is a separate entity from a staffing agency, each with distinct functions and responsibilities. Roles A collaborative relationship exists between an employer of record and its client, which can be a business or a staffing agency. While an employee works for the client, the employer of record assumes the role of the legal employer for tax purposes. The employer of record handles all administrative functions, such as payroll processing, federal & state tax withholding and filing, record-keeping, and all HR support functions. The EOR also conducts pre-employment screening such as background checks and drug testing, in addition to human resources functions such as administering benefits, termination of employees, and all other worker issues. On the other hand, a staffing agency recruits… [Read More]