What is Employer of Record services? Assuming the role of Employer of Record gives rise to a complex set of rights and responsibilities. To protect the rights of employees, labor laws and regulations impose numerous duties on an employer. These same rules also impose costly penalties for employers who breach these obligations. For this reason, the role of Employer of Record carries an inherent risk of liability. To mitigate this risk and maintain positive employee relations, an employer must have a clear understanding of the legal obligations involved.
According to Intuit 2020 report, 20-25% of the workforce is currently involved in some aspect of contingent work or alternative work arrangements. A number that is expected to rise to 40% by 2030. With the rise in the number of contingent workers, there's a demand for services that help companies establish well-run programs that can utilize this growing pool of talent.
Assuming a wide range of administrative, legal, and financial functions are why businesses hire an Employer of Record. Processing payroll is a very important function that the EOR handles. The Employer is responsible for compensating employees for services rendered. However, payroll entails much more than simply issuing a paycheck for wages earned. It involves maintaining strict compliance with wage and hour laws. An employer is also responsible for determining and withholding the appropriate deductions, including federal, state and local income taxes, wage garnishments and health benefit premiums.
Here's what Employer of Record Services Include
• Proper worker classification
• Verifying employment eligibility
• Reporting all federal, state and local taxes withheld
• Managing unemployment and workers compensation claims
• Detailed recordkeeping pursuant to statute
• Offering ACA-compliant affordable health insurance to eligible employees
If businesses do not understand how to handle these obligations properly, they find themselves hit with government audits, fines, back wages & taxes, and other disastrous penalties. We can help your business avoid these complications. Ultimately, this is a solution that leads to cost-savings for you. Make the most of your management skills and have access to the latest best practices you can adopt specifically for your business needs.
NexusCW is fully equipped with the expertise and know-how to handle all your employer of record services. In doing so, we relieve your business of the administrative burden, legal liability and financial risk. By outsourcing employer of record services to NexusCW, a business regains peace of mind and the ability to once again focus on the growth of the company.