What is an Employer of Record (EOR)? A Complete Guide
Expanding into international markets presents challenges like compliance with labor laws, payroll management, and hiring remote employees . Many companies struggle with these legal complexities, leading to delays in business expansion. This is where an Employer of Record (EOR) becomes essential. An EOR service provider allows businesses to hire internationally without establishing a legal entity in a foreign country. This blog explains what an Employer of Record is , how it works, and why businesses choose EOR services over traditional expansion models. What is an Employer of Record (EOR)? An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of a company in a foreign country. While the hiring company retains operational control, the EOR service company takes responsibility for: ✅ Payroll processing ✅ Tax deductions and filings ✅ Employee benefits administration ✅ Compliance with local labor laws By acting as the official emplo...