Description: Here is what you should know.Here are some key questions you need to ask to decide whether an EOR or PEO is best for your business.
5 Questions to Ask Before Choosing an Employer of Record Company
Records are important. As such, you want to work with a company that can deliver the best results and in a discreet manner. Whether you’re hiring in your own country or across the world, having the right employee can help you worry less about local labor laws in each area. This is even without an entity set up for the new employees.
It is crucial that you learn more about the employer of the record company (EOR) before choosing a global PEO. You want to choose the best one for the job. Find out more about them when you ask these 5 important questions before making your decision. They will help you narrow down the best options and find the one that works the best for you and your company’s needs.
Everyone needs a bit of help; make sure your Employer of Record company has your back when you make a decision on which to go with. Look at the Aggregator model, a wholly-owned infrastructure model, to learn more.
Quick List of What an EOR Does:
- Hires employees
- Pays employees
- Adheres to local and state regulations for the process
- Formal employment tasks.
Who is Responsible for Compliance When a Company Employs a Worker in the U.S.?
When a company employs a worker in the United States, the worker is generally responsible for many aspects of their job. However, depending on how they’re employed, the employer may still have some responsibilities that have to be met for the employee.
Those who are employed as independent contractors are not covered under the company per se. They’re responsible for their own taxes, workplace, and other ethical decisions. They do not affect the company in any way, as they’re not actual employees with the company.
However, those who are actually employed and live in the United States are covered under the company’s liability. The company has to provide the employee’s ideal working conditions while covering the costs of insurance and taxes.
The EOR can provide more insight into the paperwork and specifics necessary for every employee that you hire, regardless of where the employee resides and works. They handle the specifics, laws, and regulations for each employee and place while you handle the other aspects of running a business.
What About Support for Your International Team?
Choosing to outsource is becoming more and more popular with businesses across the world. There are fewer legal requirements you have to adhere to when doing this. The international team that is offering the record services should be covered under the laws and regulations for their area, but it also depends on how they’re hired to provide this type of work.
The EOR can provide the same types of records and work-related tasks to those in the U.S. and overseas. This ensures that you can hire employees from all over the world to do business tasks while you have the EOR delegate the rest. They understand the payment and work requirements for specific areas throughout the world, essentially making your life easier than ever.
Hiring an EOR is ideal for those who want to find and onboard employees quickly, regardless of where they reside, while also following the rules, regulations, and local laws for where that employee works and resides. The EOR knows these, so you don’t have to.
What About Your Company’s Intellectual Property?
All of your intellectual property will remain yours. The EOR will use the letterhead, logo, information, paperwork, and such from the company as the company for the employees, but it remains your property while doing so. You just have to permit the company to use it for the employees, the tasks, payments, etc.
They provide these materials to the workers within your company only. They are not permitted to transfer, use, or sell any of your company’s intellectual property, so it remains secure within your company and used on your behalf. Make sure this is part of the employment agreement (EA).
How WeHireGlobally Helped
WeHireGlobally has helped contribute to EOR’s because of knowing the local and global laws for employment. Not only that but with the collaboration from those around the world, so many are now able to streamline their businesses with help from knowledgeable EORs that ensure the job is done correctly.
Globalization of many company tasks and outsourcing has led to less stress for business owners and more opportunities for growth. The same is true when hiring EORs to do the employee work for you behind the scenes. You can use this to your benefit as a business looking to scale up but reduce the amount of managing you have to do.
What is My Role When it Comes to Taxes and Regulatory Compliance?
When it comes to your role as a business that hires an EOR, you have to ensure that you comply with the local, state, and other regulatory requirements. However, when hiring a professional company, you can rest assured that they will know what is required of you and what you have to provide.
Generally, the EOR company keeps track of the spending, the budget, the taxes, employees pay, and regulatory compliance. If something is required of your company, they will reach out to you and provide you with the paperwork and other details necessary to complete the task.
How Much Does an Employer of Record Costs
Knowing how much an employer of record costs can also be ideal. When considering who to hire, always consider the costs involved. They can range, depending on who you choose to go with, what all is being done, the amount of setup involved, and more. This helps you use an employer of record for the best price.
If you are looking to hand over some of the tasks to a company that can handle the employees, then an Employer of Record is beneficial. They can keep your business up to date with the mandated laws in each place you hire employees. This helps keep you on track while ensuring that your business continues to run how it should. This reduces the amount of stress, micro-managing, and onboarding you have to do. Search for quality Employer of Record companies to work with today and find the one that can provide your company with the most benefits to help you grow.