What’s an employer of record (EOR)?

An Employer of Record (EOR) is a third-party entity that assumes the responsibility of being the official employer of a workforce. An Employer of Record responsibilities includes taking care of administrative tasks related to employment, such as:

• Payroll processing
• Tax withholding
• Benefits administration
• Compliance with labor laws and regulations

While the employees perform work for an organization, the EOR handles all aspects of employment on their behalf. This arrangement allows the organization to focus on its core activities while delegating the complexities of HR and payroll management to the EOR.

Essentially, the Employer of Record responsibilities serve as a bridge between workers and the organizations employing them. Organizations can maintain operational efficiency and flexibility in hiring, while the EOR ensures that their employees are properly compensated, compliant with regulations, and provided with necessary benefits.

Similarly, GloballyHired utilizes a back-office partner that serves as an Employer of Record for talent hired for temporary/interim work through the platform, ensuring seamless and secure employment management.