Employer of Record (EoR)

From GM-RKB
(Redirected from EoR)
Jump to navigation Jump to search

An Employer of Record (EoR) is an outsourcing firm that acts like an employer for employees.



References

2023

  • chat
    • Q: What is an Employer of Record (EoR), and how does it affect global contractors?
    • A: An Employer of Record (EoR) is a third-party organization that acts as the official employer for a worker, handling responsibilities such as payroll processing, benefits administration, and compliance with employment laws and regulations. In the context of global contractors, an EoR can be especially important for companies that hire workers in other countries, where the legal and regulatory requirements for employment can be complex and vary widely.

      By using an EoR, companies can outsource many of the administrative tasks associated with hiring and employing workers, allowing them to focus on their core business activities. This can also help ensure compliance with local labor laws, tax regulations, and other legal requirements, which can vary significantly from country to country. Additionally, an EoR can help ensure that workers are paid accurately and on time, and that they receive the benefits and protections they are entitled to under local law.

      For global contractors, working with an EoR can offer several advantages, including access to a wider range of job opportunities and the ability to work with clients in different countries without having to navigate the complex legal and regulatory landscape on their own. However, it's important for contractors to understand that working with an EoR can also impact their employment status and tax obligations, and they should seek professional advice to ensure that they are in compliance with all applicable laws and regulations.

2023

  • (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Professional_employer_organization Retrieved:2023-2-14.
    • A professional employer organisation (PEO) is an outsourcing firm that provides services to small and medium-sized businesses (SMBs). Typically, the PEO offering may include human resource consulting, safety and risk mitigation services, payroll processing, employer payroll tax filing, workers' compensation insurance, health benefits, employers' practice and liability insurance (EPLI), retirement vehicles (401(k)), regulatory compliance assistance, workforce management technology, and training and development. The PEO enters into a contractual co-employment agreement with its clientele. Through co-employment, the PEO becomes the employer of record (EoR) for tax purposes through filing payroll taxes under its own tax identification numbers. As the legal employer, the PEO is responsible for withholding proper taxes, paying unemployment insurance taxes and providing workers’ compensation coverage.

      As of 2017, industry gross revenues in the United States were estimated to be over annually. In 2017, there were 907 PEOs operating in the United States alone, servicing 3.7 million worksite employees (WSEs), which were spread over approximately 175,000 PEO clients.