Employer Of Record

Here’s How Employer Of Record Service Work

Employment 4 Mins Read November 4, 2023 Posted by Arnab

If you’ve never heard of Employer of Record services, you might be curious about what they are and how they operate.

Employer of Record services is designed to help businesses looking to outsource functions such as human resources and payroll management to reduce the burden on their internal team. These services offer a quick and straightforward approach to hiring staff without shouldering all the additional duties associated with onboarding, making it easier to remain compliant with legal requirements.

To find out more about this time-saving service, continue reading as we go over Employer of Record services for businesses and how they operate.

An Employer Of Record: What Is It?

An Employer of Record (EOR) is a company or organization that manages your employees’ employment even though your company is the legal employer. The EOR manages business functions such as payroll, taxes, and other legal and regulatory needs, enabling businesses to concentrate on the management and expansion of their operations.

They also offer extra services like hiring and onboarding to ensure you have the correct personnel for the job.

An EOR is responsible for compliance with federal, state, and local labor regulations. It can be especially useful for companies that employ workers in multiple jurisdictions and need help navigating the complexities of different labor laws.

What Function Does An Employer Of Record Serve?

An EOR’s job is to offer businesses various services so they can concentrate on the most crucial jobs of running their company. EORs also give firms access to specialist knowledge, such as legal counsel, market trends, and top human resource practices. Their services include:

Employee Onboarding

Once you’ve identified a qualified candidate, an Employer of Record can handle onboarding and compliance paperwork. It is especially important if you are hiring international employees who need additional paperwork to comply with local regulations.

Outsourcing Payroll Services

An EOR provides employers with payroll outsourcing services, which they use to streamline payroll processing, increase efficiency and accuracy, reduce costs associated with payroll processing, and improve compliance with taxes and benefits administration regulations.

Providing HR Support Services

An EOR provides employers with access to experts in labor law, human resource management, employee relations, compensation structures, recruiting strategies, performance management strategies, benefit administration strategies, and more.

Ensuring Compliance with Labor Laws

Labor laws vary from state to state, so employers must comply with applicable laws. An EOR can assist employers by guiding what laws apply and ensuring that policies and procedures comply with those laws.

EORs provide employers with a wide range of services that help them efficiently manage their workforce and comply with all applicable regulations. For example, if you’re looking for EOR services in the Philippines, they’ll ensure you stay compliant with Philippines working days laws.

Benefits of Using an Employer of Record Service

There are several benefits of using an employer of record service, including:

Time Savings

When you outsource payroll and HR tasks to an EOR, they take care of all the paperwork and legwork, so you don?t have to. It leaves you more time to focus on other aspects of your business.


Staying compliant with the ever-changing payroll and employment laws and regulations is important. An EOR service can help you stay on top of these changes and ensure your company complies.

Experience and Expertise

An EOR service typically has experience working with different businesses in different industries, giving them a deep understanding of best practices when handling payroll and HR matters.


An EOR service allows you to outsource payroll and HR duties as needed, allowing you to scale up or down as needed.

Cost Savings

Outsourcing payroll and HR tasks to an EOR can be more cost-effective than hiring an in-house payroll specialist or HR team. It is especially true for smaller businesses needing help to afford a full-time payroll department.

Peace of Mind

When you outsource payroll and HR tasks to an EOR, you can rest assured that the tasks are being taken care of by professionals who are trained and experienced in their field. It gives you the peace of mind that comes with knowing your company is compliant with the latest regulations and is getting the highest quality service.

In Conclusion

Employers of record services are crucial for firms looking to grow internationally without taking on the financial and administrative burden of establishing a local corporation. They allow businesses to conduct business abroad by offering various services like payroll, tax, compliance, and HR management.

Ultimately, they can greatly benefit companies looking to save time and money while lowering risk and complexity.

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Arnab Dey is a passionate blogger who loves to write on different niches like technologies, dating, finance, fashion, travel, and much more.

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