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As the global workforce becomes increasingly mobile, more and more companies are turning to Employer of Record (EOR) services to handle the complexities of employing contingent and remote employees. An EOR is a third-party service provider that acts as the employer of record for workers on behalf of a client, handling everything from payroll and taxes to compliance with local labor laws. These organizations help companies hire temp and contract workers, but also workers that may be located in a foreign country, or even state, where the client company does not have a legal entity set up. Staffing and recruiting firms also use EORs to handle the back office component of staffing.

But with so many EOR providers out there now, how do you choose the right one for your business? Here are some key factors to consider when picking an EOR service:

Top Five Things to Consider:

  • Global Coverage

One of the most important things to consider when choosing an EOR service is their global coverage. You need to make sure that they can provide coverage in the countries where you have workers or plan to expand into. Look for EORs that have a broad network of partners and local experts to ensure compliance with local laws and regulations.

  • Expertise in Local Employment Laws

Employment laws and regulations vary from country to country, so it’s crucial to work with an EOR service that has expertise in local employment laws. A good EOR should be able to guide you through the complexities of local employment regulations and ensure that you’re fully compliant with all relevant laws.

  • Payroll and Tax Expertise

Another key consideration when choosing an EOR service is their expertise in payroll and taxes. You want to make sure that they can handle all the complexities of payroll processing, tax withholding, and compliance with local tax laws. Ask about their experience with local tax authorities and their ability to handle any audits or disputes.

  • Transparency and Communication

Transparency and communication are crucial when working with an EOR service. You want to make sure that you have a clear understanding of the fees and costs associated with their services, as well as regular communication on the status of your employees and any compliance issues that arise.

  • Technology and Platform

Finally, you should consider the technology and platform that the EOR service uses to manage your employees. Look for a service that offers a user-friendly platform for managing employee data, payroll, and compliance issues. Make sure that the platform provides sufficient reporting functions so that you can have the necessary data to populate the other systems you work with.

Which EOR should I look at?

Good news is that FoxHire checks the box on every one of the above, and has been serving EOR customers for over 30 years. You can learn more about FoxHire services here or by booking a demo.

In conclusion, choosing an EOR service is an important decision that requires careful consideration. Look for a provider with global coverage, expertise in local employment laws, payroll and tax expertise, transparency and communication, and a user-friendly technology platform. With the right EOR service, you can manage your global workforce more effectively and efficiently, while staying fully compliant with local regulations.

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