Why a Professional Employer of Record (EOR) is the Smart Choice for Business Expansion
Introduction to Professional Employer of Record (EOR) As businesses extend beyond borders, international employment is complicated. From host country labor laws to payroll requirements, there are too many ways to do it wrong. That's where a Professional Employer of Record (EOR) is involved. An EOR is a third-party firm that legally hires employees on behalf of another company so companies can recruit global talent without having to set up a local office. How a Professional EOR Works When a company hires an employee in a foreign country through a professional EOR, the EOR becomes the employer of record. This means the EOR handles employment agreements, tax remittances, social security, benefits, and compliance with local labor regulations. Simultaneously, the company has control over the employee's day-to-day activities and performance. The Employer of Record setup is particularly beneficial to firms that want to enter new markets in a hurry or test the waters wit...