Insights / Employer of Record Explained
Employer of Record Explained
Using a third party as legal employer to hire without a local entity.
For: Employers
Key takeaways
- An EOR covers payroll, tax, contracts, benefits and compliance
- Steps: scope the role, sign with the provider, onboard, run monthly payroll
- Benefits: speed, lighter compliance load, flexibility
- Risks: less direct control, provider dependence, variable cost
- Best for expansion into new cities or remote teams