Employer of Record Services Scan: What to Look For in an EOR
The global business landscape keeps evolving. Companies are always looking for the next move; yours is no exception. And though it takes courage, a successful expansion depends on the right partners.
Working with an Employer of Record (EOR) can be the quickest way to achieve it.
It enables you to hire overseas without legal or fiscal risks. It also manages a lot (and we mean a lot) of bureaucratic tasks for you. Besides handling employee payroll, it also helps you reach the highest tax efficiency. But not all can accompany you when your business grows further, and you need to incorporate it in another country (for fewer expenses). Only some can.
Discover the main Employer of Record services and how BRIDGE IN can help you expand further.
What You’ll Learn:
Employer of Record Services: The Ones You Find in Most EORs
Compliance Management
Human Resources Administration
Payroll Processing Employee
Benefits and Rights Administration
Tax Fillings and Reporting
Legal Compliance
Global Relocation Support
Risk Management
Termination and Offboarding
Customized SolutionsThe Extra EOR Services to Look For When Taking Your Business to the Next Level
Business Incorporation
Dedicated Payroll Management
Employer of Record Services: The Ones You Find in Most EORs
Some services are pretty standard.
An Employer of Record is an intermediary for your business in another country – where you want to expand (multiple countries also count). It handles complex legal and fiscal matters, ensuring your business remains compliant.
But don’t mistake it for other ways of employing abroad. For instance, an EOR has nothing to do with the Foreign Employer setup.
In short, an EOR enables employment in different countries – even if your business isn’t established there. All it does is employ workers on your behalf while you worry about your business strategy only.
So, when looking for the ideal EOR, it’s critical you find the essential services your business needs. Understanding those right from the start will save you time and money. An EOR should:
Employ in the country you choose, fully compliant, even if it’s in more than one
Handle onboarding, contracts, taxes, and other paperwork on your behalf
Manage payroll for your employees
So, when it comes to their main services, ensure you find the following.
Compliance Management
Employer of Record services mitigates the risk of non-compliance with local employment laws and regulations for businesses, particularly those without local operations in the countries they are engaged in. EORs manage tax obligations, evaluate potential employee salary benefits, and ensure adherence to labor laws, thus significantly reducing the legal risks for businesses expanding or operating internationally.
This is crucial when employing overseas. When you’re not physically in the chosen country, someone has to – to maintain everything compliant.
Human Resources Administration
Many Employer of Record services involve dealing with people (in different stages).
Usually, EORs deal with various Human Resources (HR) functions. Some include assistance during recruitment, while others only jump in on the onboarding. They work closely with each worker, ensuring all their information is known and entered into the managing system – not only when hired but also when important data changes (and needs to be updated).
They’re also ready to clarify any doubts from both sides: employer and employee.
Payroll Processing
This is one of the most common services. EORs manage payroll calculations, tax withholdings, and compliance with local tax authorities. They ensure employees are paid on time and handle their payslips every month. And this happens while respecting all local regulations and labor laws.
Sometimes, EORs externalize this service without you noticing it – which increases the risks of bad management and delayed tax or salary payments. Thankfully, that’s not BRIDGE IN’s case, as we have payroll specialists working indoors for all our clients.
Employee Benefits and Rights Administration
EORs often handle the administration of employee benefits and their rights, such as labor insurance, vacation days, and allowances. This also includes smoothly managing eventual claims from employees when needed.
Tax Fillings and Reporting
Employer of Record services provides significant support for businesses looking to expand internationally without establishing local operations.
Although these businesses aren’t directly subject to local tax filings and reporting due to the lack of operations in a particular country, EORs ensure that employment obligations are taken care of.
Those include managing employee-related tax obligations, Social Security contributions, and responding to tax-related inquiries. By doing so, EORs ensure that all employee-related tax responsibilities are met under the local laws of the country where the employees are based.
This relieves expanding businesses from the complexities of navigating foreign tax regulations and helps avoid potential penalties or higher taxes due to non-compliance.
Legal Compliance
As you know now, EORs help businesses navigate the complex legal landscape of international employment. This involves staying up-to-date with ever-changing labor laws and employment regulations, plus ensuring that the company's practices align with the legal requirements of each country.
Global Relocation Support
When needed, Employers of Record can also assist in relocating people. They handle all the related challenges and assist in obtaining the necessary work permits and visas – besides handling immigration-related paperwork to facilitate smooth cross-border employment.
Risk Management
For businesses expanding internationally, EORs offer a significant advantage. They alleviate the burden of staying informed about and responding to evolving legal requirements – in countries where these businesses don’t have established operations.
By handling these complex legal and compliance matters, EORs save time and resources for expanding businesses while providing security and reassurance. This support is precious in navigating the intricate landscape of international employment laws, where local expertise is essential.
Termination and Offboarding
Employers of Record are pivotal in facilitating termination when necessary.
They oversee exit communications, calculate final pay, and meet all legal requirements for employee separation. EORs are uniquely positioned to manage contract terminations as the legal employer and entity that formalizes the initial contracts.
However, while they act upon the decision of the client or employee to terminate a contract, their actions are always governed by the relevant local laws and regulations. EORs guide clients to ensure that these decisions are executed in a legal, compliant manner – respecting both the client's wishes and the employee's rights.
Customized Solutions
Some EORs offer customized solutions based on the specific needs of their clients – though you don’t easily find this flexibility in all of them. Luckily, BRIDGE IN tailors each proposal carefully, never delivering a standard service package – otherwise, your expansion strategy would never work.
The Extra EOR Services to Look For When Taking Your Business to the Next Level
As you noticed, Employer of Record services are similar from one company to another. But some, like BRIDGE IN, offer extra solutions that might interest you – making it much more than just a regular EOR.
So, if you want to dig deeper, meet the overall process we follow – as an EOR – when working with new expanding businesses:
You screen and select candidates with or without our help
We advise you on local salaries, perks, and best practices, and we optimize employment costs
EOR Agreement: we hire, pay employees, and handle HR on your behalf
Your company manages employee’s day-to-day work
Your workers report to you while compliantly employed by us
Besides the essential Employer of Record services, we offer guidance to scale your business further.
Why? Because, sometimes, businesses expand so much (and so quickly) that it’s best to incorporate them in the country they’ve been operating in – while partnering with an EOR.
When that happens, it means the local team is growing – so creating a hub in that country makes total sense. It cuts expenses and still ensures tax efficiency. At least, that’s what we did for Design Pickle, a US company we helped incorporate in Portugal.
Keep reading if you want to know how we can help you besides the regular Employer of Record services.
Business Incorporation
Beyond our core services, we handle everything you need to incorporate your business in Portugal. This involves navigating the Portuguese legal landscape, registering the company, and obtaining the necessary licenses. We also deal with:
End-to-end business incorporation project management
Market entry consultancy
Local recruitment consultancy
A complete overview of available grants and incentives: Startup Visas, Tech Visas, Golden Visas, and employment incentives in Portugal
Office space and logistics services
A full range of HR services: human resource consulting, safety and risk mitigation services, payroll processing, employer payroll tax filing, workers' compensation insurance, health benefits, regulatory compliance assistance, workforce management technology, training and development
Dedicated Payroll Management
While payroll processing is a fundamental EOR service, we walk the extra mile. Our dedicated local team provides everything you need to fully manage your human resources functions in a matter of days – saving you time and money while ensuring your company is law-abiding.
Here’s what that means:
Comply with Portuguese labor laws and regulations
Deduct the appropriate tax and social security withholdings
Ensure your employees in Portugal are paid accurately and on time
Help build and manage a competitive employee benefits package, interfacing with local providers and brokers – to improve talent attraction and retention
Help manage your team’s expenses, their reimbursement, and the additional taxes associated with it (for full compliance)
The truth is: there are a lot of EORs out there.
You can focus on your business's core goals when outsourcing critical tasks like compliance management, HR administration, and payroll processing. And, when you want to expand further, counting on an EOR that offers business incorporation and advanced payroll services brings an extra layer of support – making the expansion process seamless and efficient.
Choose your EOR wisely and take your time. That’s how you’ll make the best decision.
