What is a US employer or record, and how does it work?by Steve Manon Content Promoter
Do you think about global expansion for your business? You must have thought about the Employer of Record or EOR. The Employer of the record is nothing but a third-party organization which makes the international expansion cost-effective and smooth. In another word, the EOR acts as a legal employer of the workforce in a foreign country. The Employer of record mainly handles the payroll-related tasks. However, the company trusts them with all the employment-related administrative tasks as well.
Benefits of partnering with an Employer of record
The name of EOR comes to mind when you think about international expansion for your company. This third-party organization helps the business to grow in the foreign market. It sets up subsidiaries, recruits candidates, builds local networks, etc., to help the company in business expansion. The Employer of record solutions also provides payroll services on behalf of the parent company. The US Employer of record is responsible for maintaining a healthy work environment for the new branch office.
How does an Employer of record work?
The Employer of record is pretty essential for the smooth operation of your business. They provide a number of services to the company. Let's know about these services and their working procedure.
· Tax registration
The Employer of record helps the employees to register for income tax. They also help the employees with income tax declarations. The Employer of record solutions also keeps track of the tax contribution of the employees. The team of EOR also files the corporate tax for the foreign branches of the company.
· Payroll processing
Payroll processing takes a lot of time and attention. For a little error during the payroll processing, you will have to start over from the very beginning. The Employer of Record tries to provide the salaries to the employees on time. Also, the EOR takes care of the business accounts and manages the finance of the subsidiary in the foreign land pretty well.
· Employment benefits and others
The employer of record is solely responsible for clearing all the employment benefits of the employees. They keep track of the paid leaves of the employees also. In addition, the EOR team monitors the health insurance contributions, pension fund contributions, and other funds of the employees.
· Employment contacts
It is the EOR team that drafts the employment contract of the employees once they are hired. They either hand over the contract on the day of joining or during the final selection process after the interview.
· Termination of employment
Like the recruitment process, the Employer of record is also responsible for adding the employment termination grounds on the employment contract. If the employee violates any of the rules, the Employer of record puts its foot down and terminates the employment then and there. Post the termination; the EOR team clears all the due payments of the employee.
Now that you know everything regarding Employer of record, it is time to contact them and hire them for your upcoming business expansion. The employer of record has the potential to conduct the business expansion for your company in a budget-friendly way.
Created on Aug 10th 2021 16:12. Viewed 226 times.