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Employer Of Record Services

Whether your company is expanding to a new state or a new country, chances are you aren’t familiar with all applicable laws — yet you are bound to uphold them. That is where Employer of Record solutions, also known as EOR services, come into play.

An EOR solution takes care of hiring and paying workers, following laws and handling all formal employment tasks so you don’t have to. Learn how it works and how INS Global can help.

What is an EOR (Employer of Record)?

INS Global understands how Employer of Record companies work. A global employer of record does not focus on the daily duties of employees — as the employer, that is something that remains in your purview. Instead, a global EOR efficiently tackles everything related to immigration, employment and payroll services. EORs make sure that all legal and regulatory requirements are followed to the letter, essentially completing all the due diligence so your business does not have to deal with the headaches.

Typical tasks left to an EOR include:

  • Securing work permits or visas for employees
  • Acting as registered entity for legally compliant payroll services
  • Assuring that all labor laws are met
  • Acting as liaison between the national government and your employee, if it becomes necessary

The term “Employer of Record payroll services” may have you wondering how an EOR differs from a PEO, or Professional Employer Organization. While companies such as INS Global offer both services, there are a few key differences to know.

Namely, PEOs assume greater liability because they act as co-employer and provide all Human Resources services for the employee. While an EOR handles payroll services, they do not make any decisions on topics such as employee compensation, job roles or termination. Those are always left up to your discretion.

Why Use an EOR company?

Consider the logistical and legal hurdles of expanding a business across borders and it becomes clear how an Employer of Record provider can help. The main reason most companies retain an EOR is to navigate the financial and regulatory challenges associated with hiring employees in another country, state or region. Since the EOR ensures that all payroll, employment and permitting laws are followed, the company can operate in a new region without inadvertently running afoul of a local government.

While some companies may decide to bootstrap the expansion process by setting up a business entity, registering or incorporating in the new territory, and running their own local payroll, the majority of companies realize pretty quickly just how much time and effort this requires. Thus, hiring someone to provide these services allows a company to get the business up and running in a new market quickly — and with complete confidence that they are in compliance with labor and employment regulations.

Organizations save money when they use a PEO Employer of Record because they don’t need to pay the fees associated with opening a local subsidiary or even provide the internal functions that an employer normally would. While all businesses stand to benefit from a leaner model of operation, small businesses in particular may appreciate the flexibility offered when they use an Employer of Record.

Compliance is another reason many business owners tend to seek out EOR providers. If a business owner intends to establish a lengthy, formal relationship in another country — perhaps in importing/exporting, say — then it makes sense for the owner to learn “how it all works” in the new location. For the vast majority of businesses, however, taking the time to learn new laws and applicable regulations will not pay off.

By hiring an EOR, companies can ensure they comply with any laws — and avoid fines associated with noncompliance — without having to understand these laws themselves. The EOR makes sure everything is legally on point, so the company won’t be hit with an immigration violation, labor complaint or other troublesome issue.

Choose INS Global

As a leading provider of PEO and EOR solutions, INS Global can take care of necessary business services including:

  • Payroll services
  • Taxes
  • Immigration paperwork, including work permit and visa application
  • Visa sponsorship
  • Human Resources
  • Employee benefits
  • Compliance consulting
  • Global employee onboarding

While every company may need the same core set of services, we at INS Global understand that every business is unique. Thus, we are able to offer assistance with any challenges that arise while expanding a business abroad.

Get the local expertise needed to thrive in a new market while leaving compliance, management and administrative duties to us. INS Global works with companies that are ready to scale globally, as well as those just starting out or conducting market research into opening an overseas location. If you’re ready to explore our services and how they can benefit your business, reach out to us today.

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