A third-party service provider that lawfully employs workers on behalf of another company is known as an Employer of Record (EOR). The EOR handles all employment-related duties under this model, including processing payroll, ensuring tax compliance, administering benefits, and adhering to local labor laws, while the business retains authority over the employee’s job functions and day-to-day activities. This makes EORs an essential resource for businesses seeking to hire employees in other countries without setting up a local legal entity.
As businesses expand globally and embrace remote work models, finding a trustworthy and efficient EOR service has become more significant. Whether you want to bring in talent to new markets or optimize your workforce management across borders, the right EOR service can be a game-changer in facilitating smooth operations, compliance, and employee satisfaction.
In this blog, we’ll review the 10 top Employer of Record services to guide you through your global growth and workforce requirements.
What Makes an Employer of Record Service Essential for Your Company?
An EOR serves as a lawful employer of your employees, so your business can concentrate on its core business activities while leaving the administration of employment to professionals. Below are several reasons why your business can benefit from an EOR service:
1. Global Expansion Made Easy
If you want to recruit employees in various countries without incorporating a legal entity, an EOR makes this easier. With an EOR, you get to hire laborers in the foreign markets with no need for you to register a branch or subsidiary, thus saving you time and funds.
2. Respect for the Target Country’s Laws
Every country has quite different labor laws, tax laws, and work standards. An EOR keeps your company in line with these local regulations, safeguarding you from expensive fines, penalties, or lawsuits.
3. Simplify Payroll and Benefits
An EOR provider assumes the burden of processing payroll, tax withholding, and employee benefits so that employees are paid on time and correctly. They also address any complexity of multi-currency payments and tax withholding internationally, making payroll processing hassle-free.
4. Minimize Administrative Burden
Handling HR activities like contract generation, benefits management, and onboarding can be daunting, particularly when dealing with geographically dispersed workforces. EORs simplify such administrative tasks, minimizing the burden on your in-house teams and allowing them to concentrate on strategic objectives.
5. Freedom to Hire Remote Workers
As remote work becomes more popular, businesses can reach a global talent pool. An EOR allows you to hire remote employees legally in different locations, administer their contracts, and deal with employment taxes—without having to set up in each nation.
6. Cost-Effective Solution
It can be expensive and time-consuming to open a local office or subsidiary. An EOR provides an affordable solution, as it bypasses the need for establishing legal entities, in-country HR, and payroll personnel, which translates to huge overhead costs for your business.
7. Avoid Risk of Non-Compliance
Handling employee relationships on a cross-border basis poses the risk of non-compliance with local laws. EORs are labor law experts and ensure that all relevant documentation, filings, and legal requirements are complied with, eliminating the risk of fines, audits, and legal issues.
8. Emphasis on Core Business Operations
By outsourcing the HR and legal aspects of employment to an EOR, your business is free to concentrate on core operations, product innovation, customer support, and general growth with the confidence that your labor force is being optimally managed and compliantly so.
List of the 10 Best Employer of Record Services
1. Omnipresent
Omnipresent’s Employer of Record (EOR) service provides a one-stop solution for businesses looking to onboard international talent without creating local legal entities. As the legal employer, Omnipresent takes on key employment obligations, such as payroll, benefits administration, tax compliance, and HR support in more than 160 countries.
The OmniPlatform seamlessly integrates with current HR workflows, providing a unified system to onboard, manage and pay employees and contractors globally. This integration enables effective scaling and management of a global workforce
Services offered:
- Global Employment Compliance
- Payroll Management
- Benefits Administration
- Tax and Social Contributions Handling
- Immigration and Visa Support
- Onboarding and Offboarding
- Employment Contract Management
- HR and Legal Support
- Time-off and Leave Tracking
- OmniPlatform Access for Workforce Management
Pricing:
- Starting at £499/month per employee
Website: https://www.omnipresent.com/
2. Skuad
Skuad’s Employer of Record (EOR) solution enables companies to employ full-time staff around the world without having to establish legal entities in every country. With operations in 160+ countries, Skuad takes care of all international employment-related tasks—ranging from creating localized contracts and processing multi-currency payrolls to tax compliance and benefit administration. The platform also protects intellectual property and offers personalized support to employers as well as employees, making hiring worldwide easy, compliant, and affordable.
Services offered:
- Global Hiring and Onboarding
- Localized Employment Contracts
- Multi-Currency Payroll Management
- Tax and Labor Law Compliance
- Statutory and Custom Benefits Administration
- Intellectual Property Protection
- Employee Support and HR Assistance
- End-to-End Onboarding and Offboarding
- Visa and Immigration Support (where applicable)
- Access to Skuad’s Global Employment Platform
Pricing:
- Monthly Plan: Starts at $299 per employee
- Annual Plan: Discounted to $199 per employee per month with a 12-month commitment
Website: https://www.skuad.io/
3. Multiplier
Multiplier’s Employer of Record (EOR) service allows businesses to onboard, manage, and employ employees in more than 150 countries without forming local legal entities. The system supports immediate generation of employment contracts, multi-currency payroll handling of more than 120 currencies, and handling benefits like ESOPs, insurance, and leave management.
It provides in-house legal and HR support on 24/5 basis for compliance with the labor laws in a country. The service is user-friendly, with a centralized dashboard for effective management of global HR tasks. The cost of the EOR service is $400 per employee per month.
Services offered:
- Global Hiring and Onboarding
- Localized Employment Contract Generation
- Multi-Currency Payroll Processing
- Tax and Compliance Management
- Benefits and Insurance Administration
- Equity and ESOP Management
- Leave and Time-off Management
- HR and Legal Support
- Centralized Global Workforce Dashboard
- Visa and Immigration Assistance
Pricing:
- Full-Time Employees: Starting at $400 per employee per month
- Freelancers/Contractors: Starting at $40 per contractor per month
Website: https://www.usemultiplier.com/
Suggested Read: Employee Attendance Tracker Software
4. Velocity
Velocity Global’s Employer of Record (EOR) solution allows companies to hire, pay, and employ workers in 185+ countries without opening local entities. Their solution provides one platform that streamlines global workforce management while remaining compliant with local labor regulations. Through Velocity Global, businesses can go global quickly by taking advantage of experienced services coupled with a single platform to assist their global workforce.
Services offered:
- Global Talent Acquisition
- Payroll Management
- Tax and Compliance Administration
- Benefits and Compensation Management
- Employment Contract Management
- Immigration and Visa Support
- Onboarding and Offboarding
- Risk Mitigation and Compliance Assurance
- 24/7 HR and Legal Support
- Global Workforce Management Platform
Pricing:
- Customized pricing
Website: https://www.velocity.in/
5. Deel
Deel’s Employer of Record (EOR) solution enables businesses to hire, onboard, and manage workers in over 150 countries without the necessity of local entities. This solution streamlines global hiring by taking care of the intricacies of local compliance, payroll, tax, and benefits administration, enabling businesses to grow internationally without the administrative and legal burden. Deel provides quick and effective onboarding, making employees legally compliant and quickly added to the organization’s payroll system.
Services offered:
- Benefits Administration
- Legal and Employment Contract Management
- Immigration and Visa Support
- Multi-Currency Payroll Processing
- Employee Onboarding and Offboarding
- Risk and Compliance Management
- 24/7 In-App Support
- Global Workforce Management Platform
Pricing:
- $599 per month for each employee
Website: https://www.deel.com/
6. Wisemonk
Wisemonk offers Employer of Record (EOR) services that allow companies to employ and manage workers in India without having to set up a local company. With a deep understanding of Indian labor law, Wisemonk facilitates complete compliance with domestic laws, providing services like payroll management through advanced payroll software, tax assistance, benefits administration, and employment contract administration. Their remedy is also complemented by employee equipment management support, facilitating easier expansion of global firms into India. With all the HR-related tasks taken care of, Wisemonk enables firms to concentrate on expansion while providing a smooth and compliant workforce management process.
Services offered:
- Employee Onboarding and Documentation
- Payroll Processing and Tax Compliance
- Benefits and Compensation Management
- Employment Contract Management
- Statutory Compliance and Regulatory Adherence
- Employee Equipment and Asset Management
- Employee Leave and Attendance Management
- HR Support and Consultation
- Termination and Offboarding Services
- Visa and Immigration Assistance
Pricing:
- Up to ₹12,00,000 salary: $99/month, $999/year
- ₹12,00,001 to ₹75,00,000 salary: $189/month, $1,899/year
- Above ₹75,00,001 salary: $249/month, $2,499/year
Website: https://www.wisemonk.io/
7. Borderless AI
Borderless AI provides an end-to-end Employer of Record (EOR) platform that is meant to simplify global hiring, payroll, and compliance. With operations in more than 170 countries, Borderless AI allows businesses to hire full-time employees globally without having to set up local entities. Their AI-driven platform automates processes like contract creation, onboarding, payroll processing, benefits administration, and compliance management, all while ensuring compliance with local labor laws and regulations.
Services offered:
- Employment Contract Management
- Onboarding and Offboarding
- Benefits and Compensation Administration
- Compliance with Local Labor Laws
- Tax Withholding and Remittance
- Work Visa and Immigration Support
- Global Talent Sourcing and Hiring
- Employee Management and Reporting
- AI-Powered Platform for HR Automation
Pricing:
- $579 per employee per month
Website: https://www.hireborderless.com/
8. RemoFirst
RemoFirst provides end-to-end Employer of Record (EOR) services, allowing companies to hire, manage, and compensate employees across more than 185 countries without having local entities. Their platform manages all formal employment processes, such as payroll processing, compliance documentation, and benefits administration, to ensure complete compliance with local labor regulations. The platform also provides services like visa and work permit support, background checks, and equipment provisioning, making international hiring smooth and compliant
Services offered:
- Employee Benefits Administration
- Work Visa and Immigration Support
- Background Checks
- Employee Onboarding and Offboarding
- Equipment Provisioning
- HR and Legal Support
- Global Talent Acquisition
Pricing:
- Starting at $199 per employee per month, with no minimum commitment.
Website: https://www.remofirst.com/
9. Papaya Global
Papaya Global offers a scalable and strong Employer of Record (EOR) solution that makes global workforce management easy. Operating in more than 160 countries, Papaya Global allows companies to onboard, hire, and manage staff abroad without having to set up local subsidiaries or legal entities.
Their Workforce OS platform combines the major elements of global payroll, compliance, and payment processing into an all-in-one offering. This end-to-end platform automates key tasks like employee onboarding, contract management, payroll processing, and benefits administration.
Services offered:
- Global Payroll Processing
- Employee Onboarding and Offboarding
- Employment Contract Management
- Benefits and Compensation Administration
- Compliance with Local Labor Laws
- Tax Withholding and Remittance
- Work Visa and Immigration Support
- Global Talent Sourcing
- Real-Time Workforce Visibility and Reporting
- Integrated Payment Solutions
Pricing:
- $599 per employee per month
Website: https://www.papayaglobal.com/
10. Atlas HXM
Atlas HXM offers an end-to-end and seamless Employer of Record (EOR) solution, which allows businesses to go global without the intricacies and cost of establishing local offices in every nation. Atlas HXM’s Direct EOR model enables businesses to onboard, manage, and employ workers across more than 160 nations effortlessly. This removes intermediaries such as third parties from the process, making it faster and less costly by taking care of every part of employment directly.
Services offered:
- Global Payroll Processing
- Talent Onboarding
- Visa & Work Permit Sponsorship
- Compliance Management
- Employee Benefits Administration
- Tax Withholding and Remittance
- Employment Contract Management
- Global Workforce Reporting
- International HR Support
- Real-Time Global Workforce Visibility
Pricing:
- Customized pricing
Website: https://www.atlashxm.com/
Which Employer of Record Services Are the Best?
Selecting the most suitable Employer of Record (EOR) services for your company requires taking into account a number of important factors to make sure you select a solution that best suits your particular needs and international expansion objectives. Below are some steps to assist you in choosing the appropriate EOR provider:
1. Global Reach and Geographic Coverage
- Key Considerations: One of the main reasons companies use EOR services is to enter new markets without setting up a local legal presence. Therefore, it is essential that the EOR supplier be present in the nations where you plan to hire.
- What to Look For: Ensure that the EOR service has a broad, established presence in the specific regions or countries where you’re hiring. The provider should have deep local expertise, which includes knowledge of labor laws, tax regulations, and regional cultural nuances.
- Tip: Ask for a list of countries where the provider is active and check if they are capable of handling your future global expansion plans.
2. Compliance Expertise
- Key Considerations: Adherence to local labor law, tax legislation, and labor standards is probably the most problematic and hazardous facet of globally recruiting. Every country has its unique set of contract, pay, benefits, hours of work, and so forth, regulations.
- What to Look For: Select an EOR provider that has a good reputation for being current with the continually evolving legal and regulatory landscape within each jurisdiction. They must be forward-thinking in ensuring compliance and managing the intricate demands of every country’s labor laws.
- Tip: Check if the provider has legal professionals or partners in every location who comprehend local labor laws’ complexities, such as tax reporting, workers’ compensation, and conflict resolution.
3. Scalability and Flexibility
- Key Considerations: As your business expands, so will your requirement for an expandable EOR solution. No matter if you’re hiring a few employees or have a massive global staff, you require a provider that can scale with your business.
- What to Look For: Make sure the provider is able to serve businesses of all sizes, from small startups to large corporations. Search for adaptable solutions that can manage various forms of employment relationships—full-time workers, contractors, temporary workers, etc.
- Tip: Inquire about the EOR’s ability to manage rapid growth or workforce shifts without affecting service quality or compliance. For instance, are they able to manage sudden market entry or fast growth in particular geographies?
4. Technology and Platform Usability
- Most Important Factors: An EOR’s platform is the backbone of effective global workforce management. It must be easy to use, intuitive, and able to perform sophisticated payroll, benefits, and compliance functions without the need for extensive manual handling.
- What to Consider: Select an EOR with a user-friendly digital platform that enables you and your employees to handle key documents, monitor payroll, and see tax filings and benefits information. The platform must offer transparency, real-time information, and automated capabilities that minimize administrative tasks.
- Tip: Test the platform’s usability by asking for a demo and seeing if it integrates well with your current HR systems (e.g., payroll or benefits administration software).
5. Payroll and Benefits Administration
- Key Considerations: Payroll and benefits are at the heart of an EOR’s services. It’s important that these are seamless, compliant, and follow local practices.
- What to Expect: Make sure the provider is capable of processing global payroll on time and accurately with varying currencies, tax rates, and social security schemes. Also, ensure that they provide attractive employee benefits including medical care, pension schemes, and other legally mandated benefits where applicable.
- Tip: Ask them about the kinds of benefits packages they provide (healthcare, insurance, vacation, sick leave) and how they maintain compliance with local employee benefit laws.
6. Customer Support and Communication
- Key Considerations: You need a good, solid customer support system when handling complicated and constantly changing HR functions. You want a provider who is responsive and informed when things go wrong.
- What To Look For: Search for an EOR having a committed support team for customer care who is able to provide instant and helpful solutions. Best of all would be a support team accessible multiple time zones wide and in the language of your choice.
- Tip: Find out what support solutions are provided such as 24/7 coverage, a specialized account manager, and self-serve tools through the platform. This means the right support happens when you really need it most.
7. Pricing Transparency and Flexibility
- Key Considerations: Pricing is a major consideration, particularly when expanding your workforce globally. Certain EOR providers have flat fees, while others will charge per number of employees, country of operation, or ancillary services.
- What to look for: Select a provider that provides straightforward pricing with distinct explanations of all the fees involved. This should feature base fees, added fees for particular services (e.g., processing visas), and any added fees for special employee benefits or complexity of global payroll.
- Tip: Obtain a detailed quote and verify that there are no hidden fees or surprise charges. Make sure the provider presents a pricing plan that aligns with your budget and growth strategies.
8. Track Record and Reputation
- Key Considerations: Reputation is important when choosing an EOR provider. You prefer to work with a provider who has a successful track record of providing great service, particularly regarding compliance and customer satisfaction.
- What to Look For: Look for testimonials, case studies, or reviews from other businesses in your industry. Check for any red flags regarding their reputation, e.g., legal suits or customer service issues.
- Tip: Reach out to current customers of the EOR provider and inquire about their experience and satisfaction. A provider who has a good reputation will be able to offer references or case studies.
9. Data Privacy and Security
- Major Concerns: Data security and employee privacy are the top priorities in handling sensitive information like payroll, contracts, and personal data.
- What to Look For: Select an EOR provider that complies with global data protection laws such as the General Data Protection Regulation (GDPR) in the EU or other regional data privacy legislations. The provider must also have robust security measures such as encryption, secure servers, and frequent security audits.
- Tip: Ensure the provider employs industry-standard security and abides by applicable data protection regulations to protect employee data.
10. Service Flexibility and Personalization
- Key considerations: Every company has different needs, and a one-fits-all strategy might not be suitable for all. Your EOR provider needs to be flexible and open to personalizing solutions in accordance with your business needs.
- What to Look For: Find a provider that provides tailored services, whether it’s tailored benefits packages, particular legal or compliance assistance, or the capacity to handle various types of employees (contractors, full-time, part-time).
- Tip: Ask the provider about the flexibility of their services and if they can handle any special requests or modifications as your business expands or your workforce needs change.
Conclusion
In summary, choosing the correct Employer of Record (EOR) service is a business-critical decision for companies that wish to grow internationally, manage a global remote workforce, or guarantee compliance with local employment legislation. The Best Employer of Record Services offer a complete package that automates payroll, benefits administration, compliance management, and more, enabling companies to drive growth while leaving the intricacies of foreign employment to the experts.
Through an evaluation of global scope, compliance knowledge, scalability, technology, and transparent pricing, companies are able to select the most appropriate EOR service for their specific requirements and objectives. As a startup expanding into new markets or a mature company handling a global workforce, collaboration with an efficient and dependable EOR can streamline your HR operations and support success in a more globalized world.
FAQs
1. How does an EOR function?
The EOR becomes the legal employer of record for your employees, while you retain control over their daily activities and job duties. The EOR manages the legal and regulatory aspects, including paying wages, withholding taxes, and offering employee benefits, to ensure compliance with local labor regulations.
2. Is EOR the same as PEO (Professional Employer Organization)?
Although both PEOs and EORs have HR-related functions, their major difference is in the way they relate to employees. With a PEO model, the PEO shares duties of employment with the business, yet the business still holds power over its employees. With an EOR, however, the EOR is the employer of record, totally responsible for compliance and employment matters.
3. With an EOR, can I employ staff from all over the globe?
Yes, EOR services enable companies to employ workers in numerous countries around the world without having to form a local legal entity. Yet, the set of countries covered might differ between providers, so it’s necessary to verify if the provider supports the particular countries you want to employ in.
4. How does an EOR maintain compliance with local laws?
EORs are experts in each of the countries they serve. They follow the newest labor laws, tax laws, and other employment rules. The EOR will see that all forms of employment, from contracts to payrolls, align with the regulations in the country, reducing your business’s risk of legal problems.
5. Is an EOR able to help with work permits and visas?
Indeed, most EOR providers aid the process of gaining work visas and permits for the employees. It involves managing the paperwork and seeing to it that there is immigration law compliance. An EOR can also sponsor work visas in some countries and facilitate the recruitment of foreign talent.
