When it comes to managing employees, two terms that often come up are Employer of Record (EOR) and Professional Employer Organization (PEO). Although both are involved in managing employment-related tasks, there are distinct differences between the two. Employer of Record (EOR) An Employer of Record (EOR) is a company that takes responsibility for all administrative tasks related to employment, such as payroll, taxes, insurance, and compliance. Essentially, the EOR serves as the legal employer of the employees, while the client company maintains day-to-day control over the employees’ work. EORs are commonly used by companies that need to quickly and easily expand their workforce without the burden of additional administrative responsibilities. For example, a company that needs to hire workers in a new country where they don’t have an established presence might use an EOR to handle all employment-related tasks. One of the main benefits of… [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]