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.
The Employer of Record assumes a wide range of administrative, legal and financial responsibilities. Processing payroll is a primary function of the employer. 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. Other responsibilities 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 a business does not understand and handle these obligations properly, it can find itself hit with government audits, fines, back taxes and wages and other disastrous penalties. We can help your business avoid these complications. 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.