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What is EOR (Employer of Record)?

An Employer of Record (EOR) is a company that acts as the official employer for workers, but the workers are actually employed by another company. The EOR is responsible for handling payroll, taxes, and other employment-related tasks on behalf of the workers, while the workers perform their services for the end client. The EOR service is commonly used by companies that need to hire employees in a foreign country or for workers who prefer to be classified as an employee rather than an independent contractor. The benefits of using an Employer of Record (EOR) service include:

  1. Compliance: The EOR ensures compliance with local employment laws and regulations, reducing the risk of legal and financial consequences for the client company.

  2. Payroll and tax administration: The EOR takes care of all payroll and tax-related administration, freeing up the client company's resources.

  3. Time and cost savings: The EOR eliminates the need for the client company to set up its own HR and payroll infrastructure, saving time and resources.

  4. Flexibility: The EOR enables the client company to quickly scale its workforce up or down as needed, without the need for long-term commitments or expensive employee benefits packages.

  5. Expertise: The EOR brings specialized expertise in employment law, HR, and payroll to the table, ensuring that the client company is always up-to-date with the latest regulations and best practices.

  6. Speed: The EOR provides a faster solution for companies to hire employees, as they can offer pre-screened and pre-vetted employees, reducing the time to fill a role.


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