Employer of Record (EoR)
Employer of Record (EoR)
Expanding in a simple, compliant manner
An ‘Employer of Record’ (EoR) is a third-party contracted by a client company to take on the core compliance responsibilities of an employer, as specified under the law. PEOs hire employees directly and handle administrative tasks associated with employment such as processing payroll, employee benefits, and essential taxes. Meanwhile, the client business maintains day-to-day control over the employees.
Through this arrangement, the PEO serves as the “Employer of Record” for insurance and tax purposes, while taking on a range of administrative and compliance responsibilities. However, all employees still receive their work assignments and instructions from the client company. Employer of Record solutions are usually a more cost-effective, and more compliant, international expansion tool than setting up a separate company or subsidiary overseas.
