Let’s say that you’re a business owner in the United States (US). 

You want to expand your business in the Philippines (PH) and hire professionals there but don’t want to go through the hassle of setting up a local entity there— probably for various reasons like: budget constraints, time constraints, or overall lack of resources. 

An Employer of Record (EOR) is your local partner who handles all the legal and administrative stuff for you. They become the official employer of your Philippines-based employees, taking care of:

Payroll
They calculate and pay your employees’ salaries, deducting taxes and other necessary contributions.

Benefits
They manage your employees’ benefits, such as health insurance, retirement plans, and paid time off.

Taxes
They ensure that all required taxes are paid to the PH government.

Legal Compliance
They make sure your business is following all PH labor laws and regulations.

Basically, the EOR acts as your local employment assistant. 

This allows you to focus on growing your business without the extra administrative burden. It’s like having a trusted partner who handles all the paperwork while you concentrate on what you do best— growing your business and looking after your team.

Why choose an Employer of Record?

An Employer of Record (EOR) is a valuable tool for businesses looking to expand globally or scale their workforce. Collaborating with an Employer of Record (EOR) allows you to expand your business into new territories without the administrative burden of navigating foreign labor laws.

Whether you’re experiencing growth or facing challenges, an EOR enables you to adapt your staffing levels seamlessly. They can also provide cost-effective solutions, helping you avoid the overhead expenses associated with setting up an entity in a foreign country. 

An EOR can be a lifesaver when it comes to employment requirements. They ensure that your company is in full compliance with local labor regulations. This not only protects your business from costly legal penalties but also helps your company build a positive and compliant work environment.

And of course, it frees you and your team to allocate more valuable time and resources towards strategic initiatives that drive growth and success.

Factors to consider when choosing an Employer of Record:

• Jurisdictions – Ensure the EOR can support your business operations in the desired locations.
  
• Services – Determine the specific services you need, such as payroll processing, benefits administration, and employee relations.
  
• Compliance – Verify the EOR’s track record in complying with local labor laws and regulations.
  
• Technology – Assess the EOR’s technology platform and its ease of use for managing employee data and processes.
  
• Customer Service – Evaluate the EOR’s responsiveness and customer support.
  
• Cost – Compare pricing structures and hidden fees to find the most cost-effective option.
  
• References – Check references from other businesses that have used the EOR’s services. Ask about their experience and feedback.

Steps to select the right Employer of Record:

1. Define your needs. 

• Clearly outline your business goals.
• Finalize the regions you want to operate in.
• Know the specific employment requirement functions you need support with.

2. Research potential partners.

• Identify EORs that know your industry and have experience operating in your target markets.
  

3. Request proposals.

• Send detailed requests for proposals (RFPs) to shortlisted EORs. 
• Make sure to outline your requirements and ask for pricing information.
  

4. Evaluate proposals. 

• Carefully review proposals.
• Compare factors such as pricing, services offered, experience, and technology.
  

5. Conduct reference checks.

• Reach out to previous clients of the EORs you’re considering to get their feedback on the quality of service.
  

6. Negotiate terms.

• Discuss pricing, contract terms, and service level agreements with your preferred EOR.
  

7. Onboarding.

• Once you’ve selected an EOR, work with them to onboard your employees and ensure a smooth transition.
• Maintain open and consistent communication to ensure strong and long-lasting partnerships.

If you’re looking for a reliable Employer of Record, consider Filta. 

Our Employer of Record services are designed to streamline your business operations by taking care of the complex administrative tasks of your remote employees. We handle payroll processing, tax management, benefits administration, and ensuring legal compliance.

Our global reach ensures complete compliance across 150 countries, while our streamlined Employer of Record (EOR) services guarantee seamless delivery. This means you can focus on your core business without the added burden of complex compliance regulations.

Expanding into new territories often presents HR challenges, but having the right Employer of Record can alleviate these burdens. Choose a partner that can make your life easier. 

At Filta, we are committed to providing you with an easy and worry-free experience. Save time, money, and energy while growing your business and managing your teams!

Visit or reach out to us via www.filtaglobal.com to learn more about our comprehensive global solutions.