One of the best approaches to tap into foreign markets is to hire international talent through an employer of record service provider. Shortened as EOR, an employer of record is a third-party entity that oversees recruitment, onboarding and administrative HR tasks on behalf of a company. Employer of record services allow businesses to hire international talent without having to establish an entity in different countries.
How do they achieve that? Employer of record service providers have legal subsidiaries in the jurisdictions available for their recruitment and onboarding services. That means if your company works with one of the leading employer of record companies, it can mitigate risks by recruiting workers globally since it’s the EOR service provider’s responsibility for legal compliance in those jurisdictions.
Let’s discover more about EORs before you can choose an employer of record in Mexico to help you tap into the exciting global talent. Scroll the page down as you read through these informative sections to learn more.
Who’s the Employer of Record?
The actual on-paper employer is the EOR. However, the employees hired through the EOR would still work for your company, similar to any full-time workers. Their daily performance and management evaluation will remain under the power of your company.
Before you can partner with an employer of record service provider, you need to know that an EOR won’t be part of your HR decisions and strategies. While an EOR can extend its service packages to HR consulting, it can’t help with HR strategies. Key decisions still remain in the hands of your business, including the following:
An employer of record is simply a business’s perfect way to recruit and onboard international workers seamlessly and compliantly. The choice of workers remains with your business 100% of the time.
What Does an Employer of Record Do?
An employer of record service provider handles a wide range of personnel functions, such as:
- Filing taxes: An employer of record service provider will help your company calculate and withhold taxes for workers. Also, the provider will calculate and withhold taxes for your business.
- Processing and distributing payments: An EOR manages payroll and other administrative tasks, such as disbursing payments.
- Collecting and issuing relevant forms: In addition to calculating and withholding taxes, EORs are responsible for collecting and supplying relevant tax forms. They handle all state and federal documentation. Some EORs offer additional support for things such as documenting and distributing reimbursements to workers.
- Workers’ compensation and other benefits: Most workers globally are entitled to benefits such as unemployment insurance and workers’ compensation. Employer of record service providers administer worker’s compensation coverage and associated claims when they arise.
- Onboarding new hires: When hiring new workers, it’s crucial to ensure that the employees are entered into your company’s payroll system properly. Also, it’s sometimes necessary to perform background checks. An EOR can do all these things to ensure you hire the right workers.
What Are the Benefits of Working with an EOR?
You’ll enjoy multiple benefits when you decide to work closely with the best employer of record service provider. These benefits include the following:
- Saves time: From recruiting and onboarding new workers to payroll processing, an EOR handles a range of tasks, providing your HR team with enough time to focus on what matters most.
- Reduced international regulatory risks: Managing international workers and payrolls involve legal compliance for each jurisdiction of operation. One of an employer of record service provider’s primary services is adhering to various tax and labour laws of countries you’re using their talent pools. With experts like accountants and lawyers handling these activities, employer of record companies reduce their customers’ compliance risks significantly.
- Maintains precision: At some point, your company will need to entrust an EOR to vital tasks like worker management and payroll processing. If you do that, your business has the benefit of availing a highly competent organisation’s services. Top-rated EORs have much-needed knowledge and experience within this sector. Their tried and proven processes and techniques make them capable of providing precise computations for payroll and compliance.
If you are looking to tap into any international market and take advantage of its great talent, you have a reliable way to do that. Find a reliable and trusted EOR service provider today to get started with international hiring.