What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a company that helps businesses hire people in different countries. Think of an EOR like a helper who takes care of all the paperwork and rules when you want to hire someone in another country.

What Does an EOR Do?

An EOR handles important tasks like:

• Paying workers on time and correctly

• Making sure taxes are paid properly

• Setting up benefits like health insurance

• Following all the work rules in different countries

Why Do Companies Use EORs?

Let's say your company is in the United States, and you want to hire someone great who lives in France. Instead of setting up a whole new company in France (which takes a lot of time and money), you can use an EOR to help you hire that person quickly and legally.

Types of EOR Services

There are two main kinds of EORs:

1. Domestic EORs

• Help you hire people in different parts of your own country

• Handle different state rules and regulations

• Good for companies growing within their home country

2. International EORs

• Help you hire people in other countries

• Handle work permits and international rules

• Great for companies wanting to hire talent worldwide

How Does an EOR Work?

Here's a simple breakdown:

• Your company finds someone you want to hire

• The EOR becomes their official employer on paper

• You still decide what work they do and how they do it

• The EOR handles all the legal stuff and paperwork

Benefits of Using an EOR

For Companies:

• Save time and money on paperwork

• Hire people quickly in new countries

• Stay out of trouble with local laws

• Focus on growing your business

For Workers:

• Get paid on time

• Receive proper benefits

• Have their rights protected

• Work legally in their country

The Future of EORs

EORs are becoming more popular because:

• More people are working remotely

• Companies want to hire talent from anywhere

• New technology makes it easier to work across borders

• Businesses want to grow globally without the hassle

Things to Think About

Before choosing an EOR:

• Check their experience in the countries you're interested in

• Make sure they have good customer service

• Understand all the costs involved

• Ask about their technology and tools

• Talk to other companies that use them

Real-World Example

A small tech company in Boston wanted to hire three developers in India. Instead of spending months setting up a company in India, they used an EOR. Within two weeks, they had their new team members working legally and getting paid properly.

This is just one way EORs help companies grow and hire great people around the world. They make it easier for businesses of all sizes to work with talent anywhere, while following all the rules and keeping everyone happy.