What does an Employer of Record do?

June 17, 2024
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An Employer of Record is like your business's behind-the-scenes superhero. They tackle all the complex stuff so you can focus on growing your business. They handle payroll, benefits, taxes, and even tricky things like compliance with local labor laws. It's their job to take care of your people, so you can take care of business. But what exactly does an Employer of Record do? Let's find out.

Key Responsibilities of an EOR

Payroll Administration

Simply put, an Employer of Record takes the headache out of paying your employees. They make sure everyone gets paid on time, every time. And it's not just about handing out paychecks. They also handle all the tax deductions, benefits contributions, and other bits and bobs that go into a paycheck. So, instead of worrying about calculations and deadlines, you can focus on your business.

Tax Compliance

Navigating the maze of tax laws can be a real headache. That's where your Employer of Record comes in. They handle all the tricky business of making sure you're on the right side of tax payments and deductions. They do all the paperwork, meet all the deadlines, and keep you out of trouble. So, you can breathe easy knowing that your tax obligations are all taken care of.

Employment Contracts

When it comes to employment contracts, your Employer of Record has it covered. They make sure every 'i' is dotted and every 't' is crossed. They handle creating contracts, managing changes, and even ending contracts if needed. So, you don't have to worry about any legal stuff, they got it all under control.

Benefits Administration

Benefits can be a tricky business, but your Employer of Record has it all sorted. They handle everything from health insurance to retirement plans. They'll set everything up, answer any questions, and make sure it all runs smoothly. So, you can sit back and know your team's benefits are in good hands.

When to Consider an EOR

If you're growing fast and hiring people left, right and center, it might be time to consider an Employer of Record. It's also a smart move if you're stretching into new countries and need to keep up with different labor laws. Or maybe you just want to free up time to focus on what you do best - running your business. If any of these sound like you, then bringing an Employer of Record onboard could be just the ticket. They'll take care of all the administrative and legal headaches, so you can keep your focus where it should be - on growing your business.

How EOR Differs from Other Employment Models

EOR vs. BPO: Conclusion

While both Employer of Record (EOR) and Business Process Outsourcing (BPO) services aim to improve efficiency and reduce operational costs, they serve distinct functions. An EOR handles employment-related tasks such as payroll, tax compliance, and benefits administration, acting as the legal employer for international hires. In contrast, BPO covers a broader range of business processes like customer service, accounting, and HR, without assuming employer responsibilities.

Choosing between EOR and BPO depends on the specific needs of a business. An EOR is ideal for managing international employment and compliance, while BPO is better suited for outsourcing non-core business processes. In many cases, businesses may benefit from utilizing both services to address different operational challenges and enhance overall efficiency.


An Employer of Record (EOR) and a Professional Employer Organization (PEO) might sound like they do the same thing, but there's a key difference. When you team up with a PEO, you're basically sharing the responsibility for your employees.

You're still in the picture. But with an EOR, they fully take over the nitty-gritty of employee management. It's like they step into your shoes and take care of all those pesky administrative tasks. So, while both EORs and PEOs give you more time to focus on your business, an EOR really lets you step back and leave the admin stuff to the experts.

EOR vs. Direct Employment

With direct employment, you as the business owner handle everything about employing your team. You're in charge of hiring, firing, paying everyone, making sure taxes are sorted, dealing with benefits and sorting out contracts. It's a lot of work, and it takes your time away from actually running your business. But when you work with an Employer of Record, you can hand over all these responsibilities to them. They take care of everything and let you get back to the important things.

EOR vs. Freelancers/Contractors

Working with freelancers or contractors is like having a team on demand. You bring them in for a project, and when it's done, they're off to their next gig. It's flexible, but you've got to handle all the contract stuff, payments, and usually taxes too. But with an Employer of Record, they can manage all that for you. It’s like having a backstage crew handling all the paperwork while you keep the show running on stage. So, if you want flexibility without the admin hassle, an Employer of Record could be your way to go.

Industry Applications of Employer of Record Services

Technology Sector

In the technology sector, where talent is often sourced from around the world, an EOR can facilitate the hiring of skilled professionals without the need for local entities. This is particularly beneficial for startups and tech companies looking to scale quickly and efficiently.


The healthcare industry often requires specialized professionals who may be located in different countries. An EOR can manage the complexities of hiring and compliance, ensuring that healthcare providers can focus on delivering high-quality care to patients.


Manufacturing companies expanding their operations internationally can benefit from EOR services by simplifying the hiring process and ensuring compliance with local labor laws. This enables them to establish a presence in new markets more quickly and efficiently.


Educational institutions, especially those offering online or international programs, can use EOR services to hire faculty and staff in different countries. This allows them to provide a global education experience without the administrative burden of managing international employment.


Startups often face resource constraints and cannot afford to establish legal entities in multiple countries. An Employer of Record solution for startups provides a cost-effective way to hire international talent. This allows startups to access a global talent pool and scale their operations rapidly without the financial burden and complexity of setting up foreign subsidiaries. By leveraging EOR services, startups can focus on innovation and growth while ensuring compliance with local employment regulations.

How Remotify EOR in Philippines Can Help Businesses

Remotify EOR in the Philippines offers comprehensive support for businesses looking to expand in this dynamic market. They handle all employment-related tasks, including payroll management, tax compliance, and benefits administration, ensuring your business complies with local labor laws.

Remotify's expertise in the Philippine employment landscape allows you to hire remote Filipino talent without the need for a local entity, saving you both time and money. By taking on the administrative burden, Remotify lets you concentrate on strategic growth and innovation, making it easier to scale your operations in the Philippines efficiently and compliantly.


In a nutshell, an Employer of Record (EOR) is like the invisible hand that helps your business run smoothly. They take care of all the behind-the-scenes stuff like payroll, taxes, compliance, contracts, and benefits. So, you can keep your eyes on the prize - growing your business.

Employer of Record benefits include streamlining HR processes, ensuring compliance with local labor laws, and reducing administrative burdens. They're a great choice if you're expanding, hiring a lot, or just want more time to focus on your business rather than administrative tasks. The difference between an EOR and other employment models is that an EOR fully takes over the administrative roles, saving you from all the complexities. So, when you have an EOR, you've got more time to do what you do best - running your business.

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