As businesses expand globally and the workforce becomes more remote, companies increasingly rely on Employer of Record (EOR) services to manage their international, and in the US out of state employees, efficiently and compliantly. EOR services provide a range of solutions designed to simplify and streamline the complexities of hiring, managing, and paying employees across different jurisdictions.
What specific services can an EOR offer?
1. Employer of Record (EOR)
The Employer of Record service is a core function of an EOR provider. The EOR becomes the legal employer of your employees, taking on the responsibility for payroll, taxes, benefits, and compliance with federal, state, and local labor laws. This allows your company to utilize employees in new countries with or without a local entity.
2. Contractor Onboarding
EOR services include a thorough contractor onboarding process, ensuring that all necessary documentation is collected, and compliance requirements are met. This process includes verifying contractor credentials, signing contracts, and setting up payment systems. It ensures that contractors are ready to start work quickly and efficiently.
3. Timesheet Management
Managing timesheets for a global workforce can be a daunting task. EOR services offer timesheet management solutions that streamline the process. These systems allow employees to submit their hours worked, which are then reviewed and approved by the employer. Accurate timesheet management is crucial for accurate payroll processing as well as meeting FLSA timekeeping compliance requirements. Lead & Gain recently partnered with Timesheet Portal to provide a new comprehensive timekeeping solution through their in-house software. This type of solution ensures FLSA compliance by requiring contractors to use it, while addressing daily operational challenges faced by recruitment firms.
4. Pay Remittance Management
EOR providers manage the complex process of pay remittance, ensuring that employees are paid accurately and on time, regardless of their location. This includes handling multiple currencies, managing tax withholdings, and ensuring compliance with local payroll regulations. This service eliminates the administrative burden on your HR team. This also includes year-end reporting and IRS filings.
5. Compliance Tracking
Compliance is a critical aspect of international employment. EOR services include compliance tracking to ensure your company adheres to all relevant labor laws and regulations. This includes monitoring changes in legislation, maintaining necessary documentation, and ensuring that all employment practices meet local standards. This is of crucial importance if you recruit in the US as laws and regulations across its 50 states can vary significantly, in addition businesses also have to consider federal law.
6. Employee Benefits Management
EORs will manage employee benefits programs, including health insurance, retirement plans, and other perks. They ensure that benefits packages are competitive and comply with local regulations, enhancing your company’s attractiveness as an employer.
7. Legal Support
Navigating the legal landscape of international employment can be challenging. EOR services offer legal support to help you manage employment contracts, resolve disputes, and ensure compliance with local labor laws. This support is invaluable for avoiding legal pitfalls and protecting your company from potential liabilities.
8. Streamlined Systems
EORs provide streamlined systems that integrate various HR functions into a single platform. This integration simplifies all of the services already mentioned in this blog, such as management of payroll, benefits and compliance. Streamlined systems improve efficiency, reduce administrative workload, and enhance the overall employee experience. If you’re interested to find out more about Lead & Gain’s integrated platform, contact our team to receive your demo today.
9. Ongoing Support
A good EOR agreement will include ongoing customer and employee care throughout the lifecycle of your engagement. This continuous support ensures that your company can operate smoothly and address any challenges promptly, where you’re able to flag questions and concerns at any given point.