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Employers that expand internationally must contend with differing labor laws in the countries where they employ people An employer of record (eor) is an organization that handles the legal employment for other companies, ensuring all payroll, benefits, and taxes comply with any local, state, or national laws. Knowing the ins and outs of these potentially complex regulations is time consuming and mistakes can be costly
When using an employer of record, business continuity risks include potential disruptions in payroll processing, legal compliance, or employee benefits administration, especially if the eor experiences financial instability, system failures, or operational challenges. Employer of record benefits packages and payroll management the eor provides benefits on behalf of the business, which can include health insurance, paid time off, retirement savings options, and others based on the local laws and the organization. The eor assumes responsibility for legal and administrative employment tasks, such as payroll, taxes, benefits, and compliance with local labor laws
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An employer of record organization manages employees for a business client Eors generally assume responsibility for all facets of employment, such as payroll, benefits, taxes, and compliance. An employer of record (eor) acts as the official employer for your international workforce, handling essential tasks like payroll, benefits, tax filings, employment contracts, and social contributions. An employer of record (eor) helps companies hire in new markets without setting up a local entity
An eor acts as the legal employer, handling tasks like contracts, onboarding, payroll processing, and compliance with labor and tax laws.
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