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Employer of Record (EOR) Frequently Asked Questions

FiltaGlobal
Employer of Record (EOR) Frequently Asked Questions

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is an external company that acts as the legal employer of your remote employees. They handle all employment-related requirements, including payroll and tax management, benefits administration, and compliance with local labor laws. 

This allows you to focus on your core business operations while the EOR manages the complicated part of international employment.

How does an EOR work?

When it comes to hiring employees – You identify the talent you need, and the EOR handles the employment process.

When it comes to the employment contract – The EOR becomes the official employer of the hired employee, which means they will enter into an employment contract with the EOR. However, the employee will be working under your company just like any other employee in your in-house team.

When it comes to payroll and benefits – The EOR processes payroll, withholds taxes, and provides mandated benefits that are required by the local labor laws.

When it comes to compliance – The EOR ensures compliance with all employment regulations. This means following labor laws, tax regulations, and social security contributions. This also ensures that your employees get paid the right amount, on time, no matter where they work.

When it comes to HR administration – The EOR handles HR functions such as onboarding, offboarding, and time and attendance tracking.

When it comes to team management – You will still have full control over your remote employees’ performance, day-to-day tasks, and overall work. The EOR is just here to provide support whenever you need it. 

Do I need an EOR for every country that I want to expand?

  • While you can manage employees in some countries without an EOR, it’s usually easier, more efficient, and cost-effective to use one, especially when you don’t have a local entity set up in a foreign country or you face a new and complex labor market.

Can I control my employees when using an EOR?

  • Yes, as said above, you’re still in charge of what your team does, their performance management, and the day-to-day tasks. So, it’s clear that you won’t lose control of your team.

What about employee benefits?

  • It’s the EOR’s job to make sure your remote employees receive the mandatory benefits required by the government. We can also offer additional benefits depending on your preference.

Can I terminate an employee through the EOR?

  • Of course, you can ask the Employer of Record to fire an employee, but they have to be in accordance with the labor laws in their country. 

So, how can I choose the right EOR?

It’s simple, really. When selecting an EOR, ensure the EOR operates in the countries where you plan to hire employees. Research their reach or inquire for the full list of countries that they can accommodate. Also, it is a must to look for an EOR with a strong track record of compliance with local labor laws. Evaluate the EOR’s reputation, and check out their client reviews, and service offerings. You can try to reach out to their client companies to ask for honest feedback or check out forums or articles that may be talking about their performance. Lastly, consider comparing prices from different EORs to find the best value for your business and your specific needs.

Expanding your business globally can be an exciting venture, but it can also take a lot of work.  By teaming up with a trusted Employer of Record like Filta, you can improve your business overseas easily. We’ll handle all the employment tasks, so you can focus on taking care of your team and growing your company.

Easily achieve global success with the help of Filta’s Employer of Record (EOR) services.

Partner with us today.

To explore more about our Employer of Record solutions and our other services, you may visit https://filtaglobal.com/services/

Check out other blogs:

The Risks and Rewards of International Expansion

The Risks and Rewards of International Expansion

Contract or Full-Time: The Best Choice for Your Business

Contract or Full-Time: The Best Choice for Your Business

Things To Consider Before Partnering with an Employer of Record

Things To Consider Before Partnering with an Employer of Record


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