An EOR (Employer of Record) service is a third-party service that hires, manages, and pays international employees in the jurisdiction where your company has no entity. It acts as a legal entity for your company, providing it with features such as global benefit packages, payroll services, compliance management, tax assistance, and contract agreements.

Without the right EOR, your company will face numerous problems in international hiring, such as:

  • Non-compliance with local laws.
  • Poor employee experience in providing local benefits and allowances.
  • Issues with currency conversion.
  • Improper tax deductions.
  • Lower international employee retention.

To help you find the right EOR, our team at Geekflare researched and listed the top EOR services to manage employees, freelancers, and contractors globally based on local compliance support, country coverage, payroll management, and pricing.

You can trust Geekflare

At Geekflare, trust and transparency are paramount. Our team of experts, evaluated 29 EOR companies by analyzing compliance capabilities, supporting countries, pricing, and EOR specific attributes and picked the following best 13 EOR services. We also analyzed user feedback from various sources to ensure our ratings and recommendations are unbiased.  Learn how we test.

Comparison of Best Employer of Record (EOR) Services

Firstly, I’ve compared these best EOR services by their key differentiators, pricing, integrations, and who they are best suited for.

EOR Service
Deel
Deel
Velocity Global
Velocity Global
Talent500
Talent500
Papaya Global
Papaya Global
Multiplier
Multiplier
Remote
Remote
Rippling
Rippling
Remofirst
Remofirst
Foxhire
Foxhire
Vistra
Vistra
Omnipresent
Omnipresent
Oyster
Oyster
Skuad
Skuad
Best For

Varying compliance & contractor needs

Companies scaling quickly

AI-powered talent recruiting

Businesses with global compliance

Companies expanding in APAC region

Remote hiring teams

Companies needing integrated payroll and HR

Globally compliant contracts

Companies from technical, healthcare, and education industry

Personalized compliance assistance

Organizations seeking human-centric approach

Organizations seeking global benefits

Global compliance HR solutions

Key Differentiators

Easy to scale up/down

Automated workflows

Personalized hiring workflow

Dedicated account manager

Strong EOR expertise in APAC

Owns entity in 75 countries

Inventory system for equipments

Consolidated global workforce platform

Industry-specific compliance

Legal compliance and regulator changes

Customized contract creation

Automated hiring feature

Real-time update on employement laws

Integrations

HR, Accounting, Productivity

ATS, HR & HCIM

ATS

Payroll

HR, Accounting

Zapier, HR, Accounting

Accounting, HR, Sales, Content Management

HRIS

Time-tracking tool

HCM

HRIS

HRIS, ATS, ERP and Chat

HRIS, Payroll

Pricing (monthly)

$499

Custom

Custom

$599

$400

$599

Custom

$199

Custom

Custom

$499

$599

$199

4.8
/5
4.5
/5
4.4
/5
4.5
/5
4.8
/5
4.7
/5
4.8
/5
4.5
/5
4.7
/5
4.3
/5
4.5
/5
4.5
/5
4.2
/5
Visit

EOR Services Review

Below, I’ve compared the best EOR services by considering their features, pros and cons, pricing, and what I liked about each platform.

1. Deel

1. Deel

Best for Varying Compliance and Contractors

Geekflare rating score 4.8 out of 5
4.8
|
  • Supported Countries
    150+
  • Integration
    60+
  • Customer Support
    24/7 in-app Support, Support articles
$599/month
Try Deel

Why we chose Deel

Deel caters to businesses’ compliance and contractual requirements. It allows businesses to hire and operate across 150 countries without needing an entity.

Even if you’re new to EORs, you won’t have a hard time navigating the dashboard and onboarding the cross-border employees. All you need to do is choose the country of the workforce, and Deel will create contracts that comply with local benefits such as PTO, sick leave, and notice period requirements.

You have the flexibility to choose between international or local benefit providers like health and insurance providers. Deel also specializes in background checks and provides legal experts across these jurisdictions.

I liked that Deel offers a free compensation calculator for employees in different countries. You can compare the cost of international work with the USD and get insight into the average cost of employees in that country. So, if you’re hiring a web developer from India, you can use this calculator to compare the average and convert it into USD to make sure it follows compliance.

Moreover, you can track employee onboarding and use their compliance monitor to comply with the latest regulations and labor laws.

Deel Features

  • Key feature

    Provides 5-minute onboarding with country-specific documentation

  • Key feature

    Automatic collection and storage of documents and legal papers

  • Key feature

    Run payroll in 100 countries with automated deductions and taxes

  • Key feature

    Offers self-served employee tools for time tracking, document requests, and payslips

  • Key feature

    Use AI to ask questions related to compliance and the global workforce from the internet

  • Key feature

    Build custom workflows and automate employee experience

Deel Pros/Cons

  • Advantage

    24/7 live chat and phone support

  • Advantage

    Guidance by in-house legal experts

  • Advantage

    Supports 15+ payment methods, including PayPal, Debit cards, Wise, and more.

  • Advantage

    Automated W-2, W-4, 1099, and new hire filings

  • Disadvantage

    Additional fees on Deel card and international transfers

  • Disadvantage

    Does not offer background checks

2. Velocity Global

2. Velocity Global

Best for Scaling Quickly

Geekflare rating score 4.5 out of 5
4.5
|
  • Supported Countries
    185+
  • Integration
    ATS, HR, HCIM
  • Customer Support
    Email, Phone, Help Center
Custom Pricing
FREE Demo
Try Velocity Global

Why we chose Velocity Global

Velocity Global is an EOR service that operates in more than 185 countries. It helps companies hire, manage, and pay on a single platform.

It is best for businesses willing to expand globally without creating an entity in that jurisdiction. Velocity Global helps such businesses with compliance, tax, and creating a global payroll system.

Moreover, it assists businesses in creating contracts covering the legal aspects of the region’s employment laws. For instance, the ‘My Guides’ tab covers the country-specific information about its cultures and employment laws that HR teams can use to draft the contracts.

An interesting feature of Velocity Global is its local benefits package. It informs the employer about the right benefits package, such as healthcare, pensions, and other perks.

Besides global workforce management, it covers global immigration to assist employees with visas and work permits.

Velocity Global Features

  • Key feature

    Accurate and globally compliant payroll service

  • Key feature

    Streamline the hiring process of the top talents

  • Key feature

    Employee data tools for seamless workforce management

  • Key feature

    Offers every team member with medical and life coverage

  • Key feature

    Flexible retirement saving plan for international workers

  • Key feature

    Reporting and data analytics to make informed decisions

Velocity Global Pros/Cons

  • Advantage

    Integrates with various ATS, HCM & HRIS platforms

  • Advantage

    Robust user interface

  • Advantage

    Human-assisted support

  • Advantage

    Transparent foreign exchange structure

  • Disadvantage

    Pricing information is not available

  • Disadvantage

    May not be the best fit for specific niche-industry regulations.

3. Talent500

3. Talent500

Best for Technology Talent

Geekflare rating score 4.4 out of 5
4.4
|
  • Supported Countries
    100+
  • Integration
    HRIS, Payroll
  • Customer Support
    Email
Custom Pricing
Try Talent500

Why we chose Talent500

Talent500 is best known for its AI-powered talent recruiting across 65+ countries. The platform offers candidate sourcing, hiring assistance, onboarding, and offboarding while remaining compliant.

I liked its talent intelligence feature, which makes global hiring easier by assessing candidates based on over 100 parameters and matching them with recruiters. Further, Talent500 conducts structured interviews for the selected candidates to test their technical strengths.

Besides the candidate sourcing, the company helps you draft employment terms and contracts that comply with local tax and employment laws. I also like that it gives you access to country-specific perks such as health insurance, retirement plans, and wellness programs.

Cherry on the cake! You can use their compliance monitor to ensure that these benefits are provided as per local regulations.

Talent500 Features

  • Key feature

    Evaluate candidates using 100+ customizable online pre-employment tests

  • Key feature

    Anonymize candidates using AI to combat biases in hiring

  • Key feature

    Auto-generate and customize messages through email, SMS, and WhatsApp

  • Key feature

    Ability to create custom career pages using colors, themes, and brands

  • Key feature

    Create custom dashboard & reports for gaining real-time insights

Talent500 Pros/Cons

  • Advantage

    Personalized hiring workflow

  • Advantage

    Access to 1.5 mn active candidate talent pool

  • Advantage

    Scalable solution for workforce management

  • Advantage

    One-click post to 200+ job boards and partner sites

  • Disadvantage

    Only integrates with the ATS providers

  • Disadvantage

    Lacks country-specific guides on laws and regulations

4. Papaya Global

4. Papaya Global

Best for Global Compliance

Geekflare rating score 4.5 out of 5
4.5
|
  • Supported Countries
    160+
  • Integration
    HRIS, Payroll
  • Customer Support
    24/7 WhatsApp Chat
$599/month/employee
Try Papaya Global

Why we chose Papaya Global

Papaya Global is a “jack of all trades” for companies seeking cross-border hiring. Serving in more than 160 countries, this EOR provider covers various functionalities, including payroll, workforce management, benefits, and compliance.

I chose Papaya Global for three main reasons: a full suite of EOR, dedicated customer support, and transparent pricing. What I even like about it is its versatile 360 support interface that offers a dedicated account manager for personalized guidance on various aspects, including compliance, SLAs, payroll management, legal, and finance.

The highlighted feature is its self-serve portal, allowing EOR employees to complete their onboarding process, check the org chart, automate time tracking, and access payslips and wages— all on the go. They go the extra mile with their dedicated EOR wallet, enabling businesses to pay in local currency.

Papaya Global Features

  • Key feature

    Single dashboard to access all EOR and payments modules

  • Key feature

    Can onboard 1,000 EOR workers at a time

  • Key feature

    Dedicated EOR wallets with bank-level security

  • Key feature

    AI-powered engine to answer questions from the knowledgebase

  • Key feature

    1:1 guidance on immigration and visa process

  • Key feature

    Customized roles & permissions for access, data viewing, and actions

Papaya Global Pros/Cons

  • Advantage

    24/7 chat support via WhatsApp

  • Advantage

    User-friendly mobile app for iOS and Android

  • Advantage

    Guaranteed payout in 72 hours

  • Advantage

    Single prepaid card for healthcare benefits across 100 countries

  • Disadvantage

    No built-in integrations

  • Disadvantage

    Pricey for small and medium businesses

5. Multiplier

5. Multiplier

Best for Companies expanding APAC region

Geekflare rating score 4.8 out of 5
4.8
|
  • Supported Countries
    150+
  • Integration
    20+
  • Customer Support
    Email, 24/5 Dedicated Manager
$400/month
Try Multiplier

Why we chose Multiplier

Multiplier makes it into our list because of its EOR functionalities combined with the HRIS system. Serving across 150 countries in the APAC region, the platform allows businesses to hire, manage, and pay talents—in one platform.

I like its flexibility in creating contracts tailored for the contractors and employees. The user-friendly dashboard allows you to onboard new employees, verify them, and sign the contracts–in only four steps. Like Deel, you will also get the salary calculator to compare the hiring costs and get the salary breakup for each employee.

To help you with the contracts, Multiplier provides expert guidance on compliance and local employment laws and for further onboarding. I also love it for its quick invoice creation and processing that allows businesses to pay with just one click.

Additionally, it provides multiple payment options, including wire transfers, credit card payments, crypto, and PayPal. This makes it a viable option for businesses that onboard freelancers and contractors.

Multiplier Features

  • Key feature

    Regionally competitive insurance according to the local labor and tax laws

  • Key feature

    Ability to pay in 100+ currencies for payroll and payments

  • Key feature

    5-minute employee onboarding

  • Key feature

    Easy visa processing and immigration support in 140+ countries

  • Key feature

    Extensive permit database and TalentWiki resource

  • Key feature

    Compliance with GDPR, SOC 1, 2, 3 and PCI-DSS

Multiplier Pros/Cons

  • Advantage

    24/5 support from local HR and legal experts

  • Advantage

    Streamlined and self-serve onboarding

  • Advantage

    Multi-lingual contracts

  • Advantage

    Free, customizable job description templates

  • Disadvantage

    Limited integration with few HR and accounting tools

  • Disadvantage

    Local insurance benefits and payroll may cost extra

6. Remote

6. Remote

Best for Remote Teams

Geekflare rating score 4.7 out of 5
4.7
|
  • Supported Countries
    75+
  • Integration
    10
  • Customer Support
    24/5 Support, Email
$599/month
Try Remote

Why we chose Remote

Remote owns the local entity in 75 countries it serves, which protects the companies from handling their data with third parties and reduces the risk of misclassification.

It follows an efficient and 5-step onboarding process: email invitations, document uploads, work permit checklists, contract signing, and final onboarding.

I was impressed with its country explorer feature that allows you to view country-specific information about taxes, public holidays, employment termination laws, and local benefits packages. Even if you have an in-house contract management system, you can get assistance from this guide.

It prioritizes compliance and keeps its clients updated with the latest regulations in real-time. Its proprietary solution, Remote Watchtower, simplifies the legal language into a general guide and makes adjustments as compliance changes.

Remote Features

  • Key feature

    Automated smart onboarding to hire in 2-3 days

  • Key feature

    Dedicated local experts in 75 countries

  • Key feature

    Two-staged Remote IP guard to secure IPRs in remote setup

  • Key feature

    Salary benchmark insight for analyzing media market salary

  • Key feature

    Access to benefits packages such as PTO, insurance, and mental health support

  • Key feature

    Ability to set up recurring invoices

  • Key feature

Remote Pros/Cons

  • Advantage

    Comprehensive dashboard

  • Advantage

    Free HRIS management platform

  • Advantage

    Owns 100% of the entities in areas where they serve

  • Advantage

    Integration with HR, Accounting tools, and Zapier

  • Disadvantage

    Services like payroll management and contract management costs extra

  • Disadvantage

    Users have reported delays in customer support

7. Rippling

7. Rippling

Best for Integrated HR and Payroll

Geekflare rating score 4.8 out of 5
4.8
|
  • Supported Countries
    185+
  • Integration
    600+
  • Customer Support
    Live Chat, Email
Custom Pricing
Try Rippling

Why we chose Rippling

I was long interested in a platform that unifies every process into one platform, and Rippling halted that hunt. Rippling offers EOR services in more than 185 countries, including global payroll and HR management.

Like Remote, Rippling has set up its legal entities in every country it serves and helps with contract management, local and global benefits packages, and compliances.

It offers efficient onboarding process that takes merely 90 seconds. It allows businesses to onboard candidates from the ATS systems, background checks, and existing or new candidates.

Additionally, they can also choose whether the employee needs to be exempted from overtime pay or not. Rippling has an inventory system where businesses can add their available devices, such as keyboards, laptops, mouse, and more. During the onboarding, businesses can allow these devices to new hires and update their inventory.

I also loved its compliance monitor, which gives an overview of total issues and sorts the issues that need priority. For instance, if the French employment law disapproves overtime, Rippling may update the compliance monitor with a high-priority issue if the recruited French employee works overtime.

Rippling Features

  • Key feature

    Expand into the company’s org diagrams and use location or department-based filters

  • Key feature

    Automated policy management across HR, IT, and Finance department

  • Key feature

    Customized workflows for efficient onboarding and task management

  • Key feature

    Detailed breakdown of timesheets to build compliant schedules

  • Key feature

    Role-based permissions and document access

  • Key feature

    Automated payroll management across 50 countries

Rippling Pros/Cons

  • Advantage

    Integrates with more than 600 third-party tools

  • Advantage

    In-built Learning Management system for employee training

  • Advantage

    Easy-to-use mobile app

  • Advantage

    Flexible and custom reporting

  • Disadvantage

    Undisclosed pricing

  • Disadvantage

    Does not provide phone support

8. Remofirst

8. Remofirst

Best for Fast Onboarding

Geekflare rating score 4.5 out of 5
4.5
|
  • Supported Countries
    180+
  • Integration
    HRIS, Payroll
  • Customer Support
    24/7 Live Chat, Phone, Email
$199/person/month
Try Remofirst

Why we chose Remofirst

RemoFirst is our choice because of its globally compliant EOR solution across 180 countries. The platform is better known for two functionalities: global payroll solution and local compliant contracts.

For instance, businesses can compile all the unpaid invoices and pay them in their currency. Remofirst automatically transfers them into the employees’ accounts in their local currency.

Its dashboard provides information about the global workforce, including active members, payroll expenses, and country-wise employees in the organization. To facilitate faster contracts, it offers a one-click contract signing option.

I like it for its easy-to-use global workforce platform, which gives a consolidated view of its employees and the ability to tap into the wages and benefits of each individual. Additionally, it gives the flexibility to choose from various background check options such as National ID check, financial health check, criminal check, and more.

Overall, I would reccommend it for mid-sized and small businesses that are looking to expand globally but don’t need much customization.

Remofirst Features

  • Key feature

    Ability to pay invoices in various currencies, including USD, EUR, GBP, AUD and more

  • Key feature

    Get a dedicated account manager for a personalized experience

  • Key feature

    Access to RemoHealth insurance with global emergency medical assistance

  • Key feature

    Visa assistance and immigration support in 85+ countries

  • Key feature

    Use the comprehensive country guide for various employment-related information

  • Key feature

    On-demand expertise on local rules and regulations

Remofirst Pros/Cons

  • Advantage

    Free plan for contractor management

  • Advantage

    24/5 customer support through articles and online chat

  • Advantage

    One-click international payments

  • Advantage

    Shipping & logistics for equipment delivery

  • Disadvantage

    Only integrates with a few HRIS platform

  • Disadvantage

    Limited customization in payroll management

9. FoxHire

9. FoxHire

Best for Professional Employer Services

Geekflare rating score 4.7 out of 5
4.7
|
  • Supported Countries
    110+
  • Integration
    10+
  • Customer Support
    Phone, Email, Chat
Custom Pricing
Try FoxHire

Why we chose FoxHire

FoxHire is an EOR and payroll solution for organizations hiring for technical, healthcare, and higher education roles. The company operates in over 100 countries and covers various versatile features such as background checks, drug screening, unemployment claims, employee terminations, and more.

FoxHire’s user interface was intuitive during our testing and offered robust navigation. Since the interface is a bit traditional, you can easily view the options on the left panel.

It follows industry-specific compliance with IRS regulations, ACA, COBRA compliance, and per diem regulations. One of the things that I noticed is that it assists with licensing and certificates for healthcare workers.

FoxHire Features

  • Key feature

    Offers detailed guidance on labor laws and compliance

  • Key feature

    Region-specific payroll processing

  • Key feature

    Assists in W-2 document filing

  • Key feature

    Timesheet tracker to calculate employee wages

  • Key feature

    Offers integration with time-tracking software

  • Key feature

    Assists in document verification for the healthcare industry

FoxHire Pros/Cons

  • Advantage

    3-step onboarding process

  • Advantage

    User-friendly interface

  • Advantage

    Access to healthcare and pension plans

  • Advantage

    Region-compliant payroll methods

  • Disadvantage

    No third-party integrations

  • Disadvantage

    Users have reported delays in customer support

10. Vistra

10. Vistra

Best for Compliance Expertise

Geekflare rating score 4.3 out of 5
4.3
|
  • Supported Countries
    85+
  • Integration
    HRIS, Payroll
  • Customer Support
    Email
Custom Pricing
Try Vistra

Why we chose Vistra

Vistra is best known for its legal compliances and regulator knowledge across the 85 countries in which it owns the entities. The company manages the entire entity lifecycle from onboarding to offboarding, payroll administration, to creating custom contracts–all under one roof.

I choose it for its flexible dashboard and customizable contracts tailored for different industries. Additionally, you can use their EOR service or get assistance setting up a legal entity in the country.

Vistra assists with tax and statutory benefits. It offers a dedicated tax manager to update you about regulatory compliance and any changes.

Vistra Features

  • Key feature

    Access to a global talent pool worldwide

  • Key feature

    Offers a cloud-based global payroll solution and regulatory updates

  • Key feature

    Customized user permissions for accessing data

  • Key feature

    AI-powered task wizard for instant queries

  • Key feature

    Quick document upload and automated KYC verification

Vistra Pros/Cons

  • Advantage

    Works both as EOR and PEO

  • Advantage

    Customized payroll administration

  • Advantage

    Real-time compliance tracking

  • Advantage

    Expert support on HR and compliance

  • Disadvantage

    Only integrates with a few HCM tools

  • Disadvantage

    Does not offer a free demo

11. Omnipresent

11. Omnipresent

Best for Full-Service HR

Geekflare rating score 4.5 out of 5
4.5
|
  • Supported Countries
    160+
  • Integration
    HRIS
  • Customer Support
    Chat
$499/month/employee
Try Omnipresent

Why we chose Omnipresent

Omnipresent is a full-stack EOR solution that offers expense management, payroll processing, and contractor management functionalities. Serving in more than 160 countries, this EOR assists businesses in establishing local entities and ensures they follow compliance and employment laws.

Unlike other EORs, Omnipresent uses a human-centric approach to help establish local entities across various regions. For instance, businesses can get assistance from subject matter experts on payrolls and compliance issues.

Another key differentiator for us is its customization. It offers flexibility and customization in contract creation, adhering to local regulations and employment laws. This is especially important for heavily regulated markets like Italy and Germany.

I like its misclassification tool that helps businesses evaluate their legal and financial risks. You can try this feature for free and assess whether your organization is at high risk. Apart from this, the tool assists you in choosing if EOR, PEO, or VEO is right for your organization.

Omnipresent Features

  • Key feature

    Access to free employment calculator for different locations

  • Key feature

    Gives country-wise information on employment laws and policies

  • Key feature

    Offers full regulatory compliance and legal assistance under labor law

  • Key feature

    Covers global HR services such as salaries, tax and social contributions, and payroll

  • Key feature

    Supports multi-payment cycle and processes multiple payrolls in a month

  • Key feature

    Provides ERP-friendly reporting and quick exports

Omnipresent Pros/Cons

  • Advantage

    Visa and immigration support

  • Advantage

    Advanced IP protection

  • Advantage

    Free compliance risk assessment tool

  • Advantage

    Detailed invoice breakdown

  • Disadvantage

    Very limited integration

  • Disadvantage

    Does not own an entity in every country

12. Oyster

12. Oyster

Best for Global Benefits

Geekflare rating score 4.5 out of 5
4.5
|
  • Supported Countries
    130+
  • Integration
    5+
  • Customer Support
    Email, Help Center
$599/month/employee
FREE Trial Available
Try Oyster

Why we chose Oyster

Oyster has user-friendly platform and pre-created employer benefits. Offering its services in more than 130 countries, Oyster lets you onboard the full-time employees and contractors compliantly.

During our testing, I faced no difficulties in navigating the options. You can quickly add a contractor and employer to your team and initiate document collection. The onboarding process takes 48 hours.

I was impressed with its automated hiring feature that guides the client from choosing the right talent to drafting a contract and completing it for the signature. There are no setup fees to hire the contractors, but you’ll need to pay $699 per month for hiring a new employer.

Even with the simple UI, Oyster comfortably has various features– from hiring to onboarding, time-off, payroll, and global benefits. It partners with Allianz and covers health plans, pensions, and maternity care allowances.

The reason for including it in our list is its work regulation guide. The comprehensive resource provides a detailed guide to remote work policies and country-specific regulations. In my experience with salary insights was also positive. You can switch between the tabular or graphical view to view these insights. Oyster offers a view into the benefits and equity packages of the country.

Oyster Features

  • Key feature

    Onboard new talent in 48 hours

  • Key feature

    Generate legal-reviewed and 100% compliant agreements

  • Key feature

    Run timely payroll with more than 99% accuracy

  • Key feature

    Free misclassification risk analyzer

  • Key feature

    Free employment cost calculator with tax breakup

  • Key feature

    Global payroll processing in more than 25 countries

Oyster Pros/Cons

  • Advantage

    Responsive customer support

  • Advantage

    Integrates with 5000 apps via Zapier

  • Advantage

    Integrated time-off feature

  • Advantage

    Free contractor plan for 30 days

  • Disadvantage

    Does not offer multi-lingual capabilities

  • Disadvantage

    No phone support

13. Skuad

13. Skuad

Best for the Asia-Pacific Region

Geekflare rating score 4.2 out of 5
4.2
|
  • Supported Countries
    160+
  • Integration
    HRIS, Payroll
  • Customer Support
    24/5 Dedicated Support
$19/month
Try Skuad

Why we chose Skuad

I included Skuad in this list because of its global compliance HR capabilities. This makes it more suitable for international remote teams that want to stay updated on the dynamic employment laws and stay compliant with them.

Skuad operates in more than 160 countries, equipping businesses with features such as—managing onboarding, global payroll processing, cross-border payments, and automated employer lifecycle.

I liked its ease of setup, simplifying global workforce management and checking for any discrepancies with the regulations. Another highlight feature of Skuad is its global payroll, available in over 100 currencies. With just one click, businesses can process payments to multiple contractors in 2 to 3 days.

I was thoroughly impressed with its detailed country guide that offers information on onboarding terms, taxes, and deductions, salary, leave policy, compliance, and agreements. Lastly, you’ll love its employee management tools like time off and attendance, tax deductions, expense management, and offboarding.

Skuad Features

  • Key feature

    Multi-currency payroll in 100+ currencies

  • Key feature

    Automated background checks

  • Key feature

    Free employee cost calculator with downloadable PDF

  • Key feature

    Access to global leave policy across different locations

  • Key feature

    Tailored global and local benefit packages like healthcare and pension

  • Key feature

    Provides logistical support for shipping equipment

Skuad Pros/Cons

  • Advantage

    24/5 dedicated support

  • Advantage

    Ironclad IP protection and transfer process

  • Advantage

    Adherence to regulations like 1099s, IR35, and more

  • Advantage

    Robust user interface

  • Disadvantage

    Users have reported delayed communications

  • Disadvantage

    Onboarding process needs improvement

What is Employer of Record (EOR)?

Employer of Record is a third-party vendor that is the legal employer of a global workforce. It assumes and performs all legal responsibilities as the employer on behalf of a business entity. It is also known as a global employment organization, supporting companies in global expansion and operations.

EOR usually has a legal entity in different global locations to employ people compliantly. It also helps in the daily administrative tasks of a regular employer, such as onboarding, signing contracts, calculating compensation and benefits, payroll processing, tax deduction, paid time-off calculation, and offboarding. 

What is the best Employer of Record (EOR) Service?

Based on our testing, the best Employer of Record services include Deel, Velocity Global, Oyster, Omnipresent, Rippling, and Remote. While Deel is touted for its customized compliance and contractor needs, Velocity Global is best for companies expanding quickly with automated compliance management. On the other hand, Oyster and Rippling are perfect if you’re looking for integrated payroll and HR services along with the EOR functionalities.

How EOR Services Work?

An EOR service provider creates contracts that comply with local laws to hire people from different countries. It takes care of the onboarding by collecting necessary documents and securely storing them. The Employer of Record provides health insurance, pension funds, employee compensation, and other benefits. 

EOR processes employee payrolls according to the local jurisdiction. When making payments, it follows legal obligations and the regulations of the client company. It handles tax filings and employee termination processes according to the labor law of the employee’s country.

How Do I Choose the Best Employer of Record Service?

To choose the best EOR service, you need to consider various factors such as:

  • Expertise in employment laws
  • Geographic coverage
  • Global and local benefit packages
  • Compliances and industry regulations
  • Comprehensive services such as HR and Payroll
  • Transparent Pricing.

What are the Benefits of Using an Employer of Record?

Employer of Record services offers numerous benefits for businesses willing to expand their businesses cross-borders. Here are some of the most significant ones:

  • No need to establish a legal entity: EORs act as a proxy legal entity for your organization and take care of all the documentation within that jurisdiction. This saves you from the headache of creating a separate entity in that jurisdiction.
  • Manage compliances: EOR providers help create contracts in line with local compliance. They also offer compliance monitoring to ensure that the organization does not violate the laws in the jurisdiction.
  • Visa and immigration support: Most EOR providers also help with visa assistance and immigration support when relocating employees.
  • Assists with HR services: Along with hiring and onboarding international employees, EOR providers also help with various HR services, including payroll, expense management, and employee management.
  • Reduce costs: Setting up a separate entity in a new jurisdiction can be costly and requires paperwork. EOR service reduces the upfront costs and investments required to set up the entity.

How Much Does an Employer of Record Service Cost?

An Employer of Record service costs range from $200 per month per employee to $600 per month per employee. The cost of EOR depends on the geographic reach, compliance regulations, multi-lingual currencies, and personalized assistance.

What are the Key Features of a Top EOR Service?

Here are the top key features of EOR services:

  1. Legal and Regulatory Compliance: Since EORs function as the legal employers of an international workforce, they adhere to complex local labor laws, tax regulations, and legalities of the target countries.
  2. Payroll Management: They manage payroll processing, deductions, and timely payments for global employees,
  3. Benefits Administration: Manage benefits packages for international employment, which include health insurance, pensions, and other locally required benefits.
  4. HR Support and Management: Some EORs offer HR support, such as onboarding international employees, managing employee relations, and handling administrative tasks.
  5. Risk Management: Mitigate the risk of non-compliance penalties and legal disputes by local legal adherence.
  6. Global Expansion Support: Manage all legal and administrative tasks related to hiring a foreign team to streamline your entry into new markets.
  7. Employee Experience and Support: Offer support channels to provide a positive experience to international hires. 

What Type of Companies Should Use EOR?

EOR is suitable for companies willing to expand globally without the hassle of establishing a separate legal entity in that country. It is ideal for companies that want to avoid complex labor laws and need assistance with HR duties such as global payroll and invoicing.

While EOR helps mitigate certain risks associated with international hiring, there are still some legal risks associated with it. Firstly, EOR can result in misclassification of workers, such as converting contractors to full-time employees. This may lead to discrepancies and penalties.

Secondly, relying on EOR services can lead to poorly drafted agreements. This could lead to discrepancies in local labor laws, workers’ responsibilities, and contract terms.

Another major risk is regarding intellectual property protection. As an organization, your equipment and cloud software are spread worldwide in the cloud. This builds up the risks of data theft and IP infringement.

Is an EOR suitable for small businesses?

Yes. EOR can be suitable for small businesses willing to expand internationally across different jurisdictions. EORs can assist businesses with various HR processes, including global payroll services, managing global compliances, and expense management. This helps reduce the financial and administrative burden on these businesses.

What is the Difference Between an EOR and a PEO?

The key difference between the EOR and PEO lies in their services and the nature of their responsibilities. While EOR acts as a legal entity of the employer in that jurisdiction, PEO provides HR services to the company that already has a legal entity. EORs are responsible for hiring candidates, complying with labor laws, and creating agreements, whereas the PEOs manage functions like payroll, benefits administration, and compliance services.

Can an EOR Help Reduce Costs Compared to Traditional Hiring Methods?

Yes, companies using EOR can save costs on hiring and managing international employees compared to traditional methods. Since the EOR provider already owns a legal entity in that jurisdiction, it eliminates the cost of establishing a new entity in that country that requires compliance with laws and various legal requirements.

How to Choose the Best EOR Service?

Companies should follow the checklist below to find out the best employer of record services.

1. Understand Your Business Needs

As a business looking for global expansion, you need to assess the organizational requirements and determine which EOR service can cater to those. 

Before choosing an EOR service, check to see if it has a proven track record of handling the complex labor laws and tax regulations of your target countries.

3. Assess the Range of Services Offered

Not all EOR service providers offer the same facilities and functionalities. Find out about the range of services EOR offers, such as payroll, benefits, onboarding, and visa sponsorship, to ensure these align with your requirements.

4. Consider the Technology and Platform

Since EOR services need to manage global teams and maintain smooth communication with employers and employees, it should have the necessary technology. The platform should be user-friendly for functionalities like onboarding and payroll.

5. Review Pricing and Cost Structure

After shortlisting, review the EOR’s pricing model, including potential hidden fees. Choosing solutions with transparent pricing helps to avoid surprises. While the pricing should align with your budget, it should not be prioritized over quality service.

6. Evaluate Customer Support and Service Quality

EOR services should have a reliable and responsive customer support system. Their customer support channels should be responsive enough to address your needs effectively.

7. Check for Scalability and Flexibility

Users should look for providers who can scale their services to adapt to changing business needs.

8. Reputation and Track Record

You must check the reputation of the EOR service provider before choosing its service. Only companies with a good track record can provide reliable solutions.

9. Evaluate Employee Experience

The employees you hire through EOR should have a smooth experience. Know which EOR facilitates a positive experience for the global workforce.

Future Trends in EOR Services

Future trends in EOR services include using AI-powered automation tools for payroll processing and compliance checks. Some EOR service providers will offer tailored services to meet the specific needs of different industries. EOR services will expand to cater to geographically dispersed workforces, complementing the remote work trend. This will involve being prominent in key markets and developing a deep understanding of local labor laws and tax regulations. EORs will prioritize legal risk mitigation to ensure compliance.

FAQs

1. How do EORs handle payroll and taxes?

EORs handle payroll and taxes by acting as the legal employer, ensuring compliance with local laws. They manage salary payments, tax withholdings, social contributions, and benefits administration according to the employee’s jurisdiction.

2. How does an EOR manage compliance with local labor laws?

An EOR manages compliance with local labor laws by establishing local entities and consulting compliant experts in that country. It helps adhere to country-specific regulations such as minimum wage, working hours, overtime, social security, and anti-discrimination policies.

3. What are the tax implications of using an EOR for my business?

EOR manages and remits employee taxes, social contributions, tax deductions, and payroll-related obligations. This keeps your company compliant with local tax regulations and ensures there is no burden of direct taxes.

4. Do EORs handle employee benefits and insurance?

Yes, EORs cover employee benefits and insurance such as PTOs, pension plans, and paid time off. EORs also provide third-party insurance plans such as health, medical, dental, and even mental wellness insurance.

5. Can an EOR terminate employees on behalf of a company?

Yes, the EOR provider can terminate the employees on behalf of a company since they work as an entity in that region. Thus, the company gives all the legal rights to terminate the employees if they violate legal compliance in the country or contract agreements.

6. How do EOR services impact employee experience?

EOR services can drastically improve the employee experience by providing competitive salaries, local benefits packages, and legally compliant work agreements. They also fulfil HR duties such as processing payments on time, taking time off, and efficient onboarding.

What’s next?