Employer Record (EoR) services
Onboard your remote employees in 150 countries. This guide explains the EoR services and how it works.
Onboard your remote employees in 150 countries. This guide explains the EoR services and how it works.
We'll explain everything you need to know about the Employer of Record service in this guide. This includes how the service works, how to compare different providers and how to get started.
Looking to employ remote workers in countries where you lack a local entity? An Employer of Record (EoR) company, also known as an employment organization, can be your ideal solution.
As the name suggests, with an Employer of Record service, the company becomes the official employer of your remote employees. From handling payroll and taxes to managing benefits and compliance, they take care of it all. Your role is simply to provide the necessary employee details for onboarding and pay the monthly invoice for the payroll.
By opting for an Employer of Record company, you can avoid the complexities of setting up your own entity, leading to significant savings in terms of money, time, and resources. It's a popular choice for companies with a globally distributed workforce seeking a hassle-free employment solution.
Rivermate's Employer of Record (EOR) service simplifies employing your workers in any specific country or region. As the legal employer, Rivermate handles hiring, onboarding, payroll, tax compliance, and benefits administration, among other responsibilities.
Getting started is easy. Just provide Rivermate with the necessary employee details, and we'll take care of the entire process. This includes drafting employment contracts, setting up payroll, and ensuring strict compliance with local labor laws and regulations. Trust Rivermate to handle the complexities while you focus on what matters most — growing your business hassle-free.
When considering hiring remote employees, you have two options: establish your own entity and handle payroll independently or partner with a global employer, like a Professional Employer Organization (PEO), to manage payroll and compliance on your behalf.
By engaging a company that offers Employer of Record (EOR) services, you can seamlessly hire remote employees from around the world without the need to register a subsidiary or open a new entity for each hire. The PEO will also act as your employment consultant, efficiently addressing concerns and complaints from your employees. This ensures smoother human resource management and facilitates the achievement of your HR goals.
For cost-conscious startups, opting for a Professional Employer Organization offering EOR services is a smart move. The price you pay is significantly lower than establishing your own entity in a foreign country. Regardless of your business's size, a global employer with EOR services delivers the advantages of comprehensive human resource services without the hassle of setting it up yourself.
One of the key benefits of an Employer of Record is the assurance of full compliance with labor and employment laws when hiring remote workers outside your business's home country. The PEO takes on responsibilities like employee benefits (e.g., maternity leave, healthcare, paid vacation, etc.), employees' compensation, and insurance, ensuring that you meet all legal requirements.
Partnering with a Professional Employer Organization for Employer of Record services offers unparalleled convenience, cost-effectiveness, and compliance assurance, making it a top choice for companies seeking a streamlined approach to hiring remote talent globally.
Traditionally, setting up an entity could cost your company a substantial amount, ranging from $15,000 to $20,000.
However, the landscape has changed in recent years, and hiring through an Employer of Record (EOR) has become more cost-effective. Presently, the expenses for hiring via an EOR can vary, with rates falling within the range of $200 to $1600 per employee per month.
It's worth noting that some EOR services companies prefer to charge a percentage of the payroll, but we at Rivermate do things differently. We believe in a monthly-based pricing structure, as it encourages transparency and doesn't compromise the incentive to raise salaries.
For the most reliable, user-friendly, and affordable option on the market, explore the cost of hiring through Rivermate. Our platform ensures a straightforward experience with competitive pricing, making us an attractive choice for businesses seeking cost-efficient EoR services.
Rivermate streamlines the process of hiring the finest talent in any of the 150 countries you desire, all with unparalleled ease and convenience. With just a few clicks, you can delegate your company's payroll, benefits, taxes, and compliance responsibilities to Rivermate. This allows you to focus on what you do best - driving your business growth.
Rivermate stands out as the most affordable yet highly reliable option available. Our Employer of Record services come at a fraction of the cost compared to other vendors, offering savings of up to 6x and even 10x compared to traditional providers.
Within the intuitive Rivermate dashboard, you have complete control over every aspect of your workforce management. From onboarding and compensation management to tracking paid time off and employee expenses, it's all conveniently consolidated in one place. With a single click, you can effortlessly pay all your employees.
Rivermate empowers you to customize and provide benefits to your global team, including options like global health insurance coverage. We also ensure that all mandatory statutory benefits in your local legislation are appropriately implemented, all seamlessly integrated within the Rivermate platform.
Our widespread global presence enables us to have teams in nearly every country, ensuring that your company complies with ever-changing statutory corporate standards. We diligently monitor all updates in local legislation, so you can rest assured that you remain fully compliant with all applicable laws.
Choose Rivermate as your Employer of Record Services provider and experience unmatched affordability, ease of use, and compliance support to power your business's international expansion and success.
When searching for Employer of Record (EoR) companies, you'll come across two types: local and global companies. Here's how they differ:
A local EoR company typically operates in one to a few countries, often limited to neighboring regions. If your employees are based in a single country, choosing a local company may seem reasonable, as they might offer competitive pricing. However, many local EoR companies lack a comprehensive platform and HR tools, which can make employee management challenging and hinder your ability to keep track of everything efficiently.
As the name suggests, a global EoR company provides services across the globe, with capabilities spanning around 150 countries. Global companies may have their own entities in multiple countries or work with in-country partners (the aggregator model) to offer extensive coverage.
Opting for a global EoR company is advantageous when you plan to hire employees in multiple countries. With one source of truth, you can streamline operations, and most global companies provide a feature-rich platform. This includes tools for time off management and expense management, enhancing your ability to manage your global team effectively.
When choosing between local and global EoR companies, consider your specific needs and the scope of your hiring operations. Global EoR providers can offer a more unified and feature-rich experience, while local EoR companies may suit companies with a smaller geographical focus but may lack the same level of streamlined management tools.
When exploring the EoR model, you'll come across two types of global EoR companies: those with self-owned entities (like Deel, Remote, and Atlas) and those following the aggregator model (such as Papaya Global, Rivermate, and Lano).
In the self-owned entity model, the EoR company establishes subsidiaries in the countries of operation and maintains an in-house team responsible for payroll, compliance, and legal matters. The primary advantage of this model is that the EoR company's name appears on the employment contract, providing a single-point of contact.
However, this model may have limitations in terms of local knowledge and adapting to evolving laws. Managing in-house teams across multiple countries can be challenging and requires significant resources.
Conversely, the aggregator model involves collaboration between the EoR company and in-country partners, such as local payroll firms, law firms, or accountancy firms. These partners are experts in their respective countries, offering invaluable local knowledge and expertise.
The advantages of the aggregator model include a broader range of countries served and access to local networks of experts and legal teams. However, margins may be thinner due to compensating local partners, and onboarding times might be longer if partnerships are not well-established.
When considering EoR services, assess your business needs to determine whether a local or global company best aligns with your requirements. Local EoR companies suit businesses with employees in a single country, while global EoR companies cater to those operating internationally, offering access to international payroll processes and talent.
Regardless of the model you choose, partnering with an EoR company streamlines payroll processing, ensures compliance, and enables efficient management of independent contractors. With EoR services, your business can focus on core operations while leveraging third-party expertise to succeed in international markets.
In today's globalized economy, expanding into international markets presents unique business challenges. Managing distributed employees, legal responsibilities, and payroll processes across multiple countries can be overwhelming.
This is where Employer of Record (EoR) services step in, offering invaluable assistance to enterprises grappling with international employment challenges. These services help companies efficiently handle international employee hiring, allowing them to focus on their core operations.
This guide will discuss the advantages of partnering with an EoR company from a client's perspective.
EoR companies simplify the complex task of managing payroll across various markets, handling diverse tax systems, regulations, and currencies. Global payroll services guarantee timely and accurate payments for employees in different countries. This enables client companies to focus on growth and expansion without facing payroll worries.
Operating across multiple countries means adhering to various labor laws and regulations. EoR companies assume legal responsibilities, ensuring compliance with local employment laws, regulations, and taxes, reducing risk for clients. This ongoing legal support empowers businesses to expand confidently into new markets without concerns about non-compliance issues.
A key advantage of EoR services is the access to global talent pools when hiring workers. By partnering with a local entity or third-party company, businesses can attract and retain top talent from around the world without establishing a legal presence in each country. This ease of accessing global workers and contractors fosters a diverse and skilled workforce.
Managing co-employment and benefits administration can be complex, especially in international markets. EoR companies simplify these relationships by handling employee data, contracts, and administrative tasks such as health benefits and performance management. This support simplifies working with independent contractors and mitigates co-employment risks.
With a distributed workforce across multiple countries, businesses require ongoing support. EoR companies ensure employees receive necessary resources, benefits, and assistance, enhancing satisfaction and productivity. This support contributes to the overall success of the business in international markets.
EoR services assist businesses in managing employee taxes as they expand into new countries. By partnering with a local entity, client companies maintain compliance with tax regulations in each country where they operate, reducing potential tax-related issues during international expansion.
In conclusion, partnering with an EoR company equips businesses with essential services and support needed to thrive in global markets. From streamlining the international payroll process to managing legal responsibilities and providing ongoing support for a distributed workforce, EoR services enable companies to access global talent while maintaining compliance with local laws and regulations. By outsourcing these tasks to an EoR company, businesses can focus on their core operations and continue to grow, knowing that the complexities of managing an international workforce are taken care of.