Employer of Record
Hire top talent while minimizing risk and cost — anywhere in the world.
Complying with local labor laws, running payroll, and managing teams in different states or countries is no small feat. Turn to the experts to ensure compliance, accurate and on-time pay, and localized assistance—no matter where you operate.
What is an Employer of Record (EoR)?:
A global Employer of Record is an employment solution that enables companies to hire employees anywhere in the world quickly, compliantly, and without the commitment that comes with setting up foreign legal entities or state registrations. Hiring a distributed workforce brings a myriad of challenges, but a global Employer of Record serves as a valuable partner to help navigate employment complexities in any market. Specifically, a global Employer of Record takes on state- and country-specific labor law compliance, onboarding, payroll, benefits, termination, and much more.
How does a global Employer of Record work?
First, you recruit your talent in any of our 185+ supported countries or any state within in the U.S. Next, partner with a global Employer of Record who becomes the full legal employer of your talent, and assumes all employer-related responsibilities. Your global Employer of Record partner onboards talent, pays them, and manages all benefits on your behalf while you manage the day-to-day control and focus on growing your business.
What are the benefits of an Employer of Record?
An Employer of Record offers agile companies many benefits—in both the United States and international markets. But contending with the complexities of varying state- and country-specific employment laws strains internal and financial resources; most companies don’t have the internal resources or knowledge to compliantly hire talent in a different state or country.
Businesses that partner with an Employer of Record benefit from industry-leading support that enables them to:
- Hire top talent anywhere in the world
- Bypass foreign entity setup or additional state registrations
- Offer 24/7 support to their distributed workforce
Learn how our global Employer of Record solution works.
Ease the stress of hiring talent with our global Employer of Record solution. As your partner, we ensure you quickly and compliantly hire top talent in all 50 U.S. states and 185+ countries.
Our Employer of Record (EoR) approach:
As your global Employer of Record, our experts hire your distributed workforce on your behalf. We handle all risk mitigation, local labor requirements, and compliance considerations while you maintain day-to-day control of your supported employees.
Entity Setup Is Not the Only Option.
Hear advice from one executive on how his company regrets not utilizing a global Employer of Record solution to save his teams from the headaches and complexities of foreign entity establishment.
Why choose Velocity Global as your Employer of Record partner?
Premium 24/7 Support
Our teams provide the highest level of support for you and your valued employees. You receive a dedicated service manager and 24/7 assistance from your support team—no matter your location.
Our experts help you understand state- and country-specific cultural considerations and compliance. No matter your market, our team ensures your business remains current with all tax and employment law updates.
Comprehensive Benefits Packages
Attract premier talent worldwide with our competitive range of compliant benefits offerings. Our experts help you navigate and remain compliant with each market’s unique benefits and entitlements requirements.
185 Countries and 50 United States
Our established global infrastructure and capabilities in 185+ countries and 50 United States enable your firm to scale virtually anywhere. This extensive global reach eliminates the need to work with additional expansion providers to hire in any market.
“The speed, responsiveness, and service provided by Velocity Global exceeded our expectations. Its solution enabled us to compliantly onboard an employee in Canada in less than a week.”
— Jeanne Bauer, Vice President, Human Resources at MercuryGate
Case Study: Transnetyx
Transnetyx onboarded employees quickly and compliantly—without fully committing to a new market. Read how.
How to Simplify Global Expansion with International PEO
Hire virtually anywhere in the world quickly, compliantly, and confidently with International PEO.
FAQ – Frequently Asked Questions
What does it mean to be the Employer of Record?
An Employer of Record hires talent on your behalf and becomes their legal employer. This solution uses compliant employment contracts to hire and onboard your talent. Your EoR partner handles all compliance and risk mitigation, and oversees payroll and benefits.
What is the difference between PEO and EoR?
The primary difference is an Employer of Record (EoR) is the full legal employer of a company’s distributed workforce, while a Professional Employer Organization (PEO) acts as a co-employer.
An Employer of Record handles country- and state-specific onboarding, payroll compliance, payroll, taxes, benefits, unemployment claim reporting and other human resources tasks for small to large businesses.
A Professional Employer Organization (PEO) partners with small and medium-sized businesses, providing comprehensive HR services and acting as a company’s outsourced HR department.
Why should we use an Employer of Record?
An Employer of Record (EoR) allows companies to establish a new presence in domestic and international markets without the restrictions and complexities of setting up entities or state registrations. Velocity Global becomes your Employer of Record (EoR) and hires members of your distributed team on your behalf through local, compliant employment contracts.
Through an Employer of Record, you can hire top talent across the globe, bypass additional state registrations or entity establishment, and offer 24/7 support to your distributed workforce.
Who should use an Employer of Record?
An Employer of Record is often a great option when looking to hire a distributed workforce, regardless of company size or industry. We find companies are a great fit for EoR when they:
- Need to scale teams in new markets, whether in the 50 United States or all 185+ countries we support
- Do not want to set up a new entity or register their business in another state
- Are looking for a streamlined employment solution to manage compliance, payroll and benefits for their entire distributed workforce
Will an Employer of Record hire candidates for me?
Yes, we use locally compliant employment contracts to hire new members of your global team and become their legal Employer of Record (EoR).
Why use an Employer of Record instead of paying a worker as a contractor?
Employee Misclassification is a considerable risk that can possibly result in severe fines and penalties. It should be noted that if the employer manages an employee’s day-to-day responsibilities, or if the employee reports only to that employer, the employee is not a true consultant.
Will you pay/deduct taxes from the supported employee’s payroll?
Yes, we follow all local tax laws in their region and will withhold individual taxes on a monthly basis.
Do you assist with paying the necessary contributions in-country?
Our monthly invoices include mandatory taxes and other payments that are required by local governments for employers to pay into social security and other public programs. Our local experts provide an up-to-date report on the payment schemes in each country, calculate the amount due based on the supported employee’s salary, and provide a detailed breakdown in your invoice.
Do you charge fees for offboarding?
No, there are no fees for termination, but we do require 30 days’ notice to offboard any client. Keep in mind, the statutory notice period for the supported employee in a given country may be longer than 30 days by law. Some countries have unique mandatory severance periods and payouts, which our team helps you navigate.
Do you broker a deal with local partners, or are you involved through the entire Employer of Record process?
Our clients and supported employees rely on our global network of experts, which allows us to manage and control our customers’ experience. Our clients and supported employees are provided with a personal Client Account Manager to help navigate time zone, cultural, and language-appropriate contact.
Our regional teams actively remain up-to-date with any local employment law changes and perform quarterly reviews to ensure compliance with these laws.