When a company hires an employee, the responsibility of all tasks of the employee including payroll, HR related tasks and legal and labor requirements must be taken up by the employer. But not all types of companies want to take up the responsibility of dealing with the liability of managing employees. This is where the solution lies in signing up with an Employer of Record (EOR).

What is an Employer of Record?

An Employer of Record is an organization which serves as an employer for tax purposes, undertaking the responsibility of the legalities and statutory requirements of the employee while managing payroll and other related tasks of the employee allowing the employee to work for their client.

Tasks managed by EOR

The Employer of Record handles many areas which include below functions:

  • Processing payroll
  • Filing taxes
  • Handling compensation
  • Issuing statutory forms for EPF and ETF
  • Processing time sheets
  • Creating and maintaining employment contracts
  • Employee onboarding (new hire)
  • Maintaining certificate of insurance
  • Completing and storing legal and statutory requirements
  • Doing background checks and screenings
  • Offering and administering benefits
  • Termination of employees

Benefits of having an Employer of Record

Using an Employer of Record saves time that is spent on manual HR and payroll related tasks especially if your business has relocated to another region. These mundane tasks take up time and energy, outsourcing these would only save time to invest on strategic input. It is cost effective, and it allows the employee to manage and follow the industry’s best practices when outsourced to experts. If your business is in multiple regions, EOR can centralise operations and manage functions smoothly. EOR can completely take care of your employees legal, statutory and payroll requirements even if you are not experienced, neither you need to spend time in learning and complying with laws and regulation in multiple countries.

However, this does not mean that the employer is not responsible for their employees, the company will be responsible for health, workplace safety and compliance where as an EOR will be responsible for employment admin related areas along with payroll compliance and tax laws.

Getting an Employer of Record for your company

As an employer, it is crucial to have your employees classified correctly, paid accurately, sand managed compliantly to avoid unnecessary lawsuits and issues. Even if you manage a global enterprise or a start-up, ExroAsia is equipped to offer an EOR solution customized for your requirements. Message us for a free consultancy session.

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