Employer Of Record (EOR)

An Employer of Record (EOR) is a company or organization that legally employs workers on behalf of another company, usually in situations where the employer wants to outsource human resources, payroll, tax compliance, and other legal responsibilities. 

1. Payroll processing - Ensuring employees are paid on time and in accordance with tax laws.

2. Tax compliance - Managing employee tax withholdings, filings, and reporting.

3. Benefits administration - Overseeing employee benefits like health insurance or retirement plans.

4. Employment law compliance - Ensuring the company complies with local labor laws and regulations, such as worker's compensation, paid time off, etc.

5. Onboarding and offboarding - Managing the process of hiring, terminating, and managing employee records.

This arrangement is often used by companies that want to hire workers in different countries or states without having to set up a legal entity there. For example, a company in the U.S. might hire employees in Europe without having to establish a full office or subsidiary in that region, using an EOR to handle all the local legalities. 

The worker typically performs the job duties for the client company, but the EOR is the official legal employer.