Employer of Record (EOR) services have become increasingly popular in recent years as a solution for businesses that need to hire employees in different US States or countries where they do not have a legal entity or presence. Let's discuss what EOR services are, how they work, and their benefits.
What is an Employer of Record?
An Employer of Record is a third-party organization that provides employment services for a company, such as payroll, benefits, taxes, and legal compliance. When a company hires an EOR, the EOR becomes the employer of record for the employees, while the client company maintains control over the employees’ day-to-day work, tasks, and duties.
How does Employer of Record services work?
Employer of Record services works by taking on the legal responsibilities and liabilities associated with being an employer. The EOR will handle all aspects of employment, including hiring, firing, payroll, benefits, taxes, and legal compliance, while the client company retains control over the employees’ work.
The EOR will sign an employment contract with the employee and manage all HR-related paperwork and tasks, such as onboarding and offboarding, benefits administration, and time and attendance tracking. The client company will provide direction on the employee’s job responsibilities, performance expectations, and day-to-day tasks.
What are the benefits of using an Employer of Record?
- Compliance: An EOR ensures that the client company is compliant with local employment laws, regulations, and taxes, which can be complex and vary from country to country.
- Time and Cost Savings: An EOR can save the client company time and money by handling all HR-related tasks, including recruiting, onboarding, payroll, benefits administration, and compliance.
- Flexibility: An EOR enables the client company to hire employees in new countries without setting up a legal entity or presence, allowing for greater flexibility and agility.
- Expertise: An EOR has expertise in employment laws, regulations, and taxes in the countries where they operate, which can be valuable for companies that are expanding internationally.
- Reduced Risk: An EOR takes on the legal responsibilities and liabilities associated with being an employer, reducing the client company’s risk.
Employer of Record services provides a valuable solution for companies that need to hire employees in new countries. By taking on the legal responsibilities and liabilities associated with being an employer, an EOR can save the client company time and money while ensuring compliance and reducing risk. If you are considering hiring employees in new countries, an EOR may be a valuable solution to consider. Contact us to get more information regarding our services.
"NexusCW has exceeded our expectations. We had previously worked with a number of Employer of Record agencies, both international and domestic, and none could offer us what NexusCW has. They understand our company and our temp workforce needs. They respond quickly, often instantly, to our requests. They take pride in their work and will see a job through, even when we get picky when requesting candidates."
- Summer, HR Director
American Industrial Conglomerate
"What I appreciate most about working with NexusCW is that I find their team to be both incredibly knowledgeable and professional. The responses to my inquiries and problems are timely, clear, and concise. I am not savvy in holding employment compliance but they are always willing to explain and clarify things. I also think that the NexusCW team have provided us with innovative ideas and strategies for our contingent workers and they have reliably supported us as we’ve tried to implement new ideas and strategies."
- Russell C.