The coronavirus pandemic has shifted the way workplaces across the globe operate. Due to the need for social distancing and constant sanitation, many employers have encouraged or required their employees to work from home. The shift has also made its way into the job interview and hiring process creating opportunities for migrating workers with zoom meetings becoming the normal operating procedure for narrowing down the candidate pool. In fact, 62% of employed Americans currently say they have worked from home during the COVID-19 outbreak.
The allure and flexibility of working from home have contributed to many individuals migrating from their home state to a different state altogether.
If location no longer matters, why pay California rent prices when you can pay Idaho prices?
While an employee moving between towns isn’t a major cause for concern, moving between states can leave business leaders and human resources worried about compliance issues.
You may be wondering:
- Should we work with a professional employer organization?
- Are we required to fulfill the legal requirements of the state in which the employee resides?
The reality is that when you employ migrating workers, you are required to fulfill the legal requirements of both the state you operate in and the state where your employee resides, which includes reviewing proof of worker eligibility and paying taxes in the proper states. There are two routes you can choose to navigate the multi-state waters: partnering with either a professional employer organization (PEO) or employer of record (EOR).
The difference between a PEO and EOR is substantial. When you hire an EOR, the EOR becomes the legal employer of your workers. The EOR assumes all liabilities and responsibilities for those workers. Let’s dive into these benefits below.
3 Benefits of Hiring an EOR for Migrating Workers
- Recruiting and hiring new employees is no simple task. In fact, it can take months of interviews to find the right candidate for the role. With an employer of record (EOR) you have access to a wide range of individuals on staff ready to be deployed at a moment's notice.
- Compliance requires you to be familiar with all rules relating to the state your employee is in which can lead to headaches and risk of potential IRS fines and legal fees. Hiring an EOR is much more effective than hiring a PEO as an EOR is considered the legal employer.
- Employee Benefits
- In addition to payroll concerns, companies that utilize an EOR have the ability to negotiate much lower benefits rates than a company can get individually.
Work from home arrangements are beneficial to both employees and employers. Employees are typically happier and more productive when working from home while businesses enjoy increased productivity and a vast talent pool. The modern workforce craves flexibility and with the pandemic raging on, it has become a matter of health and safety.
The reality is that when you employ migrating workers, you are required to fulfill the legal requirements of both the state you operate in and the state where your employee has moved to which can cause compliance concerns among business leaders and human resources professionals.
Though companies have the choice between hiring a PEO and an EOR, the benefits of an EOR far outweigh that of a PEO. Using an EOR, like NexusCW allows companies to save time during the hiring process, reduce risks, remain compliant, and secure more affordable benefits for their employees.