What Are the Benefits Of An EOR?
EORs remove the legal employment burden associated with managing a contingent workforce entirely from the employer, including timekeeping payroll processing, proper employee classification including 1099 employees, administering health insurance coverage, sick time, vacation time, onboarding and offboarding, as well as managing compliance with employment laws and tax withholding.
Examples of onboarding tasks EORs perform include reviewing identification documentation, I-9 forms and 1099 forms processing, as well as providing employees with orientation or background materials on the employer. EORs also typically manage offboarding activities including exit interviews.
Additional benefits to employers who use an EOR:
- Frees up the employer’s HR and legal teams’ time to work on more strategic projects.
- Custom payrolling software from the EOR partner simplifies and provides more transparency into the performance and cost of their contingent workforce.
- Cost-effective international employee hiring in countries in which employers do not have a presence rather than forming a new legal entity abroad for the purpose.
Do your employees work for you or for the EOR?
The contingent employees employed as part of an EOR program and employees of the EOR provider, not the end company at which they work.