Hiring employees from different countries can be difficult due to differences in tax and employment laws and employer obligations. Fortunately, there is a solution that can make this task easier – Employer of Record (EOR). An EOR is a company that acts as an intermediary between the employer and the employee, making it possible to hire workers from all over the world. In this article, we will take a closer look at what exactly an EOR does and the benefits it can bring to employers.
What is an Employer of Record (EOR)?
Employer of Record (EOR) is a company that acts as an intermediary between employers and employees, enabling them to hire workers from around the world. EOR has many responsibilities, including hiring new employees, creating and maintaining employment contracts, obtaining visas and work permits, processing wages and providing advice on local employment laws. In addition, the EOR represents the employer as the legal employer in the region and handles such tasks as issuing W-2 forms, filing I-9 forms, offering and administering benefits and processing unemployment claims. Overall, the EOR helps organize the process of hiring and employing workers from different countries, while dealing with many legal and administrative duties related to employment.
What benefits does the EOR provide?
Employer of Record (EOR) offers many benefits for employers who want to hire employees from different countries. Here are some examples:
Saving time and money: An EOR handles all employment-related issues, allowing employers to avoid the costs of setting up a new company and dealing with employment-related issues.
No risk of regulatory violations: EOR ensures that all employment matters are handled in accordance with local laws, avoiding the risk of illegal hiring.
Ability to hire quickly: With the EOR service, employers can quickly hire selected employees without the need to create a new company.
Visa and work permit support: EOR helps employers obtain required documents such as visas and work permits, making the process of hiring foreign workers easier.
Full support for employment duties: EOR handles all employment-related duties, such as creating employment contracts, processing wages, dealing with unemployment claims, etc.
Cost savings: Using EOR’s services can be cheaper than forming a new company or hiring local staff.