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EOR vs Entity: When Opening a Foreign Subsidiary Is a Mistake | RemotePeople x HR.com Analytics Table
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What is an EOR? An Employer of Record (EOR) is a company that legally employs your international workers on your behalf โ handling contracts, payroll, taxes, benefits, and labor-law compliance โ so you can hire employees in any country without opening a local entity. ๐ Our EOR service โ hire in 150+ countries without local entities ๐ https://remotepeople.com/solutions/employer-of-record/ ๐ฐ Pricing ๐ https://remotepeople.com/pricing/ ๐ Book a call ๐ https://remotepeople.com/contact/ ๐ Full guide โ What Is an Employer of Record (EOR)? ๐ https://remotepeople.com/blog/what-is-an-employer-of-record In this episode of HR.com's Totally Talent podcast, host Mike Wood sits down with Chris Kafina, Senior Director of Global Sales, and Mark Fielding, Director of Strategic Partnerships for the Americas at RemotePeople, to break down how an employer of record works and when to use one instead of a foreign subsidiary. โฑ๏ธ Chapters: 0:00 Intro โ Totally Talent Podcast 0:30 Meet Chris Kafina & Mark Fielding 1:30 Why Global Hiring Is Booming 2:52 How EORs Stay Compliant Across Countries 4:16 How an EOR Platform Works, Step by Step 5:00 Country Coverage & HR Integrations 6:00 Making the EOR Part of Your HR Strategy 7:00 Rapid Fire with the Guests 8:00 Wrap-Up ๐ What you'll learn: โข What an Employer of Record (EOR) is and how it works โข EOR vs. setting up a legal entity โ costs and trade-offs โข How EORs handle payroll, taxes, benefits, and compliance โข When an EOR is the right choice for international hiring ๐ธ How EOR payroll actually works: 1. You approve one monthly invoice, in your currency. 2. The EOR runs local payroll in-country โ gross-to-net calculation, income tax withholding, employer social contributions. 3. Statutory benefits, pension, and 13th-month pay are included wherever they're mandatory. 4. Your employee receives a compliant local payslip, paid on time in local currency. 5. You get one consolidated global payroll report covering every country you hire in. No foreign entity, no local tax registrations, no juggling providers. Explore global payroll: https://remotepeople.com/solutions/global-payroll-services/ ๐ What changes country to country: โข Employer costs on top of gross salary commonly range from about 10% to 35%, depending on the country. โข Pay cycles differ โ monthly in most markets, bi-weekly in others. โข Some countries mandate a 13th-month salary โ a legally required extra month of pay โ so budget for it before you hire international employees. โ FAQ Q: Is using an employer of record legal? A: Yes โ the EOR model is a legal, widely used way to employ people in most countries. Country-by-country breakdown: https://remotepeople.com/is-employer-of-record-legal/ Q: Does an EOR handle payroll taxes? A: Yes. Because the EOR is the legal employer, it withholds employee income tax and files employer contributions with local authorities in each country. You simply approve one invoice. See pricing: https://remotepeople.com/pricing/ โถ๏ธ Watch the full webcast โ Global Hiring Explained: EOR vs Entity, Compliance & Costs: https://www.youtube.com/watch?v=tn1qZy2W9TI โถ๏ธ EOR explained in 90 seconds โ What Is an Employer of Record (EOR)?: https://www.youtube.com/watch?v=Z3EaPm4nyCo #EmployerOfRecord #EOR #WhatIsAnEOR #GlobalHiring #InternationalHiring #EORPayroll #GlobalPayroll
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