Employer of Record

An Employer of Record enables companies to hire employees in new countries or states quickly, without the time and cost of setting up a local subsidiary or branch office. The EOR becomes the legal employer of the worker — handling payroll processing, tax withholding and remittance, statutory benefits enrollment, and compliance with local labor laws — while the client company retains day-to-day control over the employee's work. EOR services typically carry a cost premium of 15 to 25% above the employee's gross salary to cover the service fee and statutory employer contributions. This model is popular for startups expanding internationally, companies piloting new markets, or organizations hiring a small number of remote employees in jurisdictions where establishing an entity would be impractical.

What is the difference between an EOR and a PEO?

A Professional Employer Organization (PEO) operates under a co-employment model where the client and PEO share employer responsibilities, and the client must have an existing legal entity. An EOR is the sole legal employer, making it suitable for companies without a local entity in the target country.

How much does an Employer of Record cost?

EOR services typically cost 15 to 25% above the employee's gross salary, or a flat monthly fee per employee ranging from $300 to $1,000+ depending on the country and provider.