Employer of Record services in 150 countries

Onboard your employees in 150 countries, using only one platform as your Employer of Record provider. This guide explains the EoR services and how it works.

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You don't have to set up an entity in any country, when you use an Employer of Record.
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No signup fees, annual contracts, just simple transparent pricing. A monthly fee to pay for your global team.
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Guide on Employer of Record services

We'll explain everything you need to know about the Employer of Record service in this guide. This includes how the service works, the differences between an Employer of Record (EOR) and a Professional Employment Organization (PEO). How to compare different employer of record service providers and how to get started.

What is an Employer of Record service (EOR)

An Employer of Record company, often referred to as an employment organization, helps you employ your remote employees in a country where you do not have an entity in.

As the word says, an Employer of Record service basically means that a company becomes the official employer of your employee. The Employer of Record company takes care of payroll, taxes, benefits and compliance. This means that all you have to do is give the EoR company the details of the employee for onboarding and pay the monthly invoice for the payroll.

Since the Employer of Record company hires your employees, you do not have to set up your own entity, and this can save you a lot of money, time and resources. Most companies opt for an Employer of Record instead of opening their own entity when their employees are spread around the world.

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What are the responsibilities of an Employer of Record (EOR)?

An Employer of Record company, often referred to as an employment organization, helps you employ your remote employees in a country where you do not have an entity in.

As the word says, an Employer of Record service basically means that a company becomes the official employer of your employee. The Employer of Record company takes care of payroll, taxes, benefits and compliance. This means that all you have to do is give the EoR company the details of the employee for onboarding and pay the monthly invoice for the payroll.

Since the Employer of Record company hires your employees, you do not have to set up your own entity, and this can save you a lot of money, time and resources. Most companies opt for an Employer of Record instead of opening their own entity when their employees are spread around the world.

What are the benefits of hiring an Employer of Record?

When you want to hire remote employees, you can choose between opening your own entity and running the payroll yourself, or using an Employer of Record to handle the payroll and compliance for you.

An Employer of record speeds up your business expansion

When you hire an Employer of Record, you can easily hire remote employees from all parts of the world without registering a subsidiary or opening an entity in order to hire the employee.

An Employer of Record will also serve as your employment consultant that looks into the concerns and complaints of your company’s employees. It will help you deal with these issues and make it easier for you to achieve your human resource management goals. 

Hiring an Employer of Record is cost-efficient

Most startups hire an Employer of Record because doing so is cost-efficient. The price you pay for an EOR is lower than opening an entity yourself in a country. Additionally, whether you have a small or large business, an employer of record will provide you with the benefits of human resource services without the need to spend time and money setting it up on your own.

An Employer of Record guarantees full compliance

An Employer of Record provides full compliance with labor or employment laws when recruiting remote workers outside the country where your business is located. Such responsibilities include employee benefits (e.g., maternal leave, healthcare, paid vacation, etc.), employees’ compensation, and insurance.

What are the costs of hiring through an EoR company?

Traditionally, opening an entity would cost your company around $15,000 to $20,000.

The prices of hiring through an Employer of Record have decreased the last few years. Right now the costs of hiring through an Employer of Record can be between $200 up to $1600 per employee per month. Some EoR companies prefer to work with a percentage of the payroll. We are not a fan of that as this does not incentivize the employer to raise salaries.

You may check out the cost of hiring through Rivermate, which is a monthly-based pricing structure. We are the most reliable, easy to use platform, and most affordable option you can ever have.

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Why choose Rivermate as your Employer of Record?

Rivermate assists you in hiring the best employees in any of the 150 countries of your choice, all without any hassle or fuss on your part. In just a few mouse clicks, you can ask Rivermate to take care of your company's payroll, benefits, taxes, and compliance. Rivermate will assist you in onboarding them, so you can focus on what you do best - business growth.

The most affordable yet most reliable option out there

Rivermate offers the same Employer of Record services for a price that is 6x cheaper than most vendors, and 10x cheaper than the old-school vendors.

Everything essential is contained inside a single dashboard

Within the Rivermate dashboard, you have complete control over anything that has to be done. Our dashboard can help you:
1. Onboard, manage, and compensate the staff you have
2. Manage paid time off and expenses reimbursed to employees
3. Pay all your employees in one click

Provide benefits to your global team

Rivermate also assists you in modifying the benefits you provide to your workers. You may even include global health insurance coverage! We also assist you in securing all of the required statutory benefits in your local legislation. All of this is completely integrated within the Rivermate platform.

We take care of compliance

We have teams in practically every country on the planet. They ensure that your firm remains in compliance with the perennially changing statutory corporate standards. Every change in your local legislation is monitored so that you may remain completely compliant.

What is the difference between a local Employer of Record and a global Employer of Record company?

When searching for Employer of Record companies, you can stumble upon two types of Employer of Record companies, local Employer of Record companies and global Employer of Record companies. Here's the difference between the two: 

Local Employer of Record company

A local Employer of Record company can serve only 1 to a few countries, usually only neighbouring countries.
If you have only have employees in one country, then it can make sense to opt for a local Employer of Record company. More often than not a local Employer of Record company can offer competitive pricing. The downside is that most local EoR companies do not have a platform and HR tools, which makes it harder to manage the employee and keep an overview.

Global Employer of Record company

A global Employer of Record company is, as the name implies, a company that can provide global Employer of Record services. Most global Employer of Record companies can serve about 150 countries, however this depends on whether the global EoR company has its own entities or using in-country partners, more about this in the next chapter.
If you plan to hire employees in multiple countries then it makes sense to opt for a global Employer of Record company. You have one source of truth then and most of the times you get a fancy platform with all the tools needed to manage your team, such as time off management and expense management.
Global EoR companies can either have their own entities in many countries, or they work with in-country partners, also called the aggregator model. Read about the differences below.

Self-owned entity model versus aggregator model

When researching the Employer of Record model, you will notice that there's two types of global Employer of Record companies. EoR companies with self-owned entities (such as Deel, Remote and Atlas) and EoR companies that work with the aggregator model, which means that they have in-country partners in every country (Papaya Global, Rivermate, Lano)

Self-owned entity model

An EoR company that works with self-owned entities, means that the company opens subsidiaries in the countries they want to operate in. This usually means that they hire an in-house team to manage the payroll, compliance and legal in these countries.
The advantages of working with an EoR company with self-owned entities is that on the employment contract, the name of the EoR company will be placed, instead of the name of the local partner. Another advantage is that there's only one party involved.
The disadvantages of working with an EoR company with self-owned entities is that the company usually is not familiar with all the local and ever-changing laws. Moving everything in-house means that you need a team of at least five people in that country, which can be neglected by the companies.

Aggregator model

An EoR company that works with the aggregator model, means that the company uses in-country partners in the countries they want to operate in. A local partner can be a local payroll firm, law firm, Eor firm or accountancy firm. These local partners are focussed on one or some countries only and already process thousands of payslips every month for these specific countries. Working together with these companies, gives the EoR company access to all the local knowledge and expertise needed to offer the HR and EoR service in that country.
The advantages of working with an aggregator model is that the EoR company can usually serve more countries than the EoR company with self-owned entities. Another advantage is that the EoR company has access to a network of experts and legal teams in every single country.
Disadvantages of working with the aggregator model is that the margins for the EoR company are thinner because the local partners need to get paid as well. Also for EoR companies that do not have a good partnership with local partners, the onboarding times can take longer than expected.

Frequently Asked Questions

Our team is here to answer any questions you might have.
Is hiring an Employer of Record legal?

Hiring employees in other countries through an Employer of Record is legal! Some Employers of Record, though, guarantee better compliance with local laws than others. 

These are usually the ones who are directly associated with their in-country partners. Before you hire a particular Employer of Record company, make sure that the company has in-country partners that have comprehensive knowledge and experience in handling local payroll, benefits, taxes, compliance, and even stock options.

What is global payroll?
Global payroll is the overall management of a company’s entire payroll data for all locations via a single system. Companies that set headquarters in a particular location will need to compensate employees working in different locations, thus creating a global payroll system. Learn more about global payroll here.
What is global payroll compliance?
Payroll compliance is the general term for the activities needed to comply with laws and regulations that dictate how payroll should be processed. This includes the integration of data, the calculation of allowances, deductions, benefits, and the net wages of every employee in an organization.
What organizations can benefit from an Employer of Record?
An Employer of Record is perfect for organizations that want to acquire top talent from countries other than their own. Examples are startups needing programmers, manufacturing companies who need contractors, or digital marketing agencies needing a diverse, but top-notch workforce. Your company size or the industry you belong to does not matter when deciding to hire an Employer of Record. 

As an EOR trusted by Employers worldwide, we make sure you get value for money as you create your team. We’ll save you time and resources while being legally compliant with local labor laws. Rivermate is at your disposal if you desire a hassle-free administration of your company's payroll, benefits, compliance, and taxes.
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