What is an Employer of Record?
An employer of record is a company that will place the employee(s) under their employment umbrella in a target country. In most cases, the employer of record will be the sole employer in the country jurisdiction. Some countries may enforce a co-employment relationship.
Watch the 4 minute video...
An employer of record is a company that will place the employee(s) under their employment umbrella in a target country. In most cases, the employer of record will be the sole employer in the country jurisdiction. Some countries may enforce a co-employment relationship.
Watch the 4 minute video...
Typically, the employer of record will be responsible for the following:
Things to consider before engaging an employer of record:
You can perform reference checks and verify affiliation with professional organizations such as the Better Business Bureau, etc.
- Human resource and payroll functions relating to the employee
- Employer taxes
- Federal, state, and local income tax withholding
- Labor compliance
- Country regulations relating to the employee's actions
- Private health and life insurance plans for the employee(s)
- Employment related legal matters in the country
- Banking regulations relating to payments to the employee and from client
Things to consider before engaging an employer of record:
- Does the employer of record have a physical presence with staff in the target country?
- How long has the employer of record been in business?
- What type of track record does the employer of record have?
- What is the tax payment history and litigation history of the employer of record?
- Does the employer of record comply with the country regulations, laws, and cultural customs?
- Does the employer of record have the infrastructure established in the target country to provide adequate service to your employees?
You can perform reference checks and verify affiliation with professional organizations such as the Better Business Bureau, etc.
