Skip to main content

Employer of Record Platform: Do’s and Don’ts

By January 17, 2017September 20th, 2022No Comments
Employer of Record Platform: Do's and Don'ts

One of the most complex aspects of overseas expansion is managing the hiring process. As a result, companies benefit when they partner with an Employer of Record platform.

An Employer of Record, or EOR, is a service that helps businesses outsource talent, engage with independent contractors, and hire full-time team members through an established legal entity. While this service can be used for both domestic and overseas engagements, it primarily comes in handy when managing complicated foreign labor laws.


There are multiple EOR options, which include PEO, ASO, BPO, Foreign Subsidiary as a Service (FSaaS), and recruiting firms. Each option offers different benefits. For example, FSaaS provides your business with a legal entity overseas without establishing a permanent foreign subsidiary, saving your company lots of time and money. In addition, a service like International PEO manages compliance while you hire employees overseas and can help your business secure work permits and visas.

What is an Employer of Record Platform?

All Employer of Record platforms revolve around a similar service, which is signing on the dotted line for the company’s liabilities associated with a given employee. Although these requirements vary from country to country, you’ll typically come across requirements like:

  • Payroll
  • Taxation
  • Health Benefits
  • Pensions
  • Worker’s Compensation
  • HR Liabilities
  • Termination Requirements
  • Unemployment Liabilities

To help you further understand the benefits of an Employer of Record platform, we’ve put together a few do’s and don’ts to keep in mind when choosing a provider.

Employer of Record Platform: Don’ts

DON’T Reinvent the Wheel

Employer of Record services exist to help companies simplify the hiring process. Basically, EORs exist so you don’t have to reinvent the wheel. Hiring both domestically and internationally is a complicated process. It involves vast knowledge of labor laws, requirements, and withholdings and when those aren’t met – hefty fines and penalties ensue.

Avoid the stress and start researching your EOR options. Using one of these services can help your team focus on its strategy and continued growth.

DON’T Pick a Partner Without Asking the Right Questions

There are plenty of EOR options. When you start searching for a service provider, come up with a list of questions to ask before signing on the dotted line. A few questions to get you started are:

  • Can I pick and choose the services I need?
  • What is the payment structure?
  • Will I have a representative available to call and ask questions when needed?
  • Do you have experience in my target country?

The last question, “Do you have experience in my target country?”, may be the most important question to ask the Employer of Record platform. Labor laws are always changing and are different in each country. You want to work with a firm that has experience in your target market to ensure they can manage compliance and meet all of the necessary withholdings and deadlines.

DON’T Expand Internationally Without an EOR

When expanding overseas, an Employer of Record platform, such as International PEO or FSaaS, make the process smooth and simple for companies. Hiring employees with the assistance of an in-country expert helps your team avoid penalties and gives you peace of mind to continue day-to-date operations in your new market. It also saves you the hassle of establishing a permanent subsidiary.

Employer of Record Platform: Do’s

When you begin searching for an Employer of Record platform, keep in mind that you have many options not only for the provider but also for the type of service they offer. You’ll want to explore many different firms to find the perfect match for your company’s needs.

DO Vet Multiple Firms

There are plenty of Employer of Record platform providers available for companies. Do your due diligence and vet various firms. You should understand how they approach employment law, compliance, payroll withholdings in each country. As mentioned above, make sure that they have direct experience in your target country.

DO Understand the Different EOR Options

Aside from the various firms providing EOR services, you also have options the service type. For example, you can use an EOR to outsource HR tasks like payroll and benefits. You can also use an EOR help you hire full-time employees and manage all of the requirements associated with employment.

The different Employer of Record platform options include:

DO Use an Employer of Record Platform for International Expansion

When choosing an EOR, you’ll determine the relationship based on your company’s need for talent, how much of the day-to-day responsibility you want to manage, and the amount of liability you want to consume. Overseas employment increases complexities, which is why it’s beneficial to work with an in-country expert to assume liabilities from your firm.

If you’re curious about using an international Employer of Record platform for your global initiatives, we would love to chat! Our services like FSaaS and International PEO are revolutionizing the way companies do business overseas. Give us a call to learn more!