What is an Employer of Record?
An Employer of Record (EOR) is a service provider that assumes responsibility for certain employer-related tasks, such as payroll processing, tax withholding, benefits administration, and compliance with employment laws and regulations.
An Employer of Record becomes the legal employer of the workers they support, handling administrative functions while the client company retains managerial control and oversight of the employees' day-to-day work.
This arrangement allows businesses to outsource complex and time-consuming HR tasks, reduce administrative burden, and mitigate legal risks associated with employment while still maintaining operational control over their company.
The Goal of an Employer of Record
Our goal is to provide services that ensure your company’s security and success. By maintaining employee stability, we sweep away distractions, fostering a positive environment where you can realize your company’s long-term potential. We help you do what you do best.
We take on the burden and give you the freedom to succeed.
An Employer of Record like Strategic Contracting Services becomes wholly responsible for an array of administrative functions and compliance services.
What an Employer of Record can do for your Company
An Employer of Record’s essential administrative services and compliance functions include, but are not limited to, the following:
- Payroll Processing and Management
- State and Federal Regulatory Compliance
- Payroll Tax Withholding and Filing
- Independent Contractor, Remote Employee and Contingent Workforce Management
- Benefits Administration + Flexible Spending Accounts
- Employment Screenings, Onboarding, and Mandated Trainings
- Employment Practices Liability Insurance & Employee Handbooks
Allowing an Employer of Record to oversee HR duties, personnel management, benefits and payroll administration can save both time and money.
Does your company need an Employer of Record?
Companies seeking to expand into new markets or operate nationally could potentially encounter a number of legal and compliance challenges, especially when it comes to labor regulations.
An Employer of Record acts as the link, ensuring that our client's workforce adheres to local employment laws, handles payroll, benefits, and other HR functions, thereby mitigating the risks associated with non-compliance and streamlining their entry into new territories.
For organizations prioritizing scalability and operational efficiency, partnering with an EOR allows them to focus on their core business activities while entrusting us with the complexities of HR management.
The Difference between an EOR and a PEO
An EOR takes full legal responsibility for employment matters, handling payroll, taxes, benefits, and compliance with labor laws as the official employer of record.
On the other hand, a PEO operates under a co-employment model, sharing employer responsibilities with the client while offering HR support and administrative services.
The main difference lies in the legal relationship: with an EOR, the provider assumes all employer liabilities, shielding the client from legal risks.
Protecting your Company with an EOR
An Employer of Record is a shield that protects your company. Not knowing what’s coming around the next corner, an Employer of Record makes sure the i’s are dotted, and the t’s are crossed. We provide another level of business security.
An Employer of Record allows a company to overcome the regulatory hurdles and added costs of employing workers in remote locations. Moreover, we safely manage temporary employees, contingent workers and independent contractors.
Every state has its own employment, payroll and work permit requirements for non-resident companies doing business. By teaming with an Employer of Record, a company does not have to worry about these regulatory hurdles.
Moreover, the high costs of working in multiple states with a variety of employment designations is reduced. By having an Employer of Record protect your company, you remove liability while saving both money and time.
Employer of Record and the Opportunities of Tomorrow
Working with an Employer of Record allows you to optimize your business because we take on the many burdens that can distract you from achieving growth and success.
As a business owner with a vision for the future, you obtain real freedom. Once again, you can focus on the business of your business.
If you're interested in our services use our Get Started Today page to arrange a consultation.