Employer of Record Services: TOP 6 Companies
In today’s interconnected world, many businesses are expanding internationally to access new markets and opportunities. However, operating globally brings complexities surrounding payroll, taxes, benefits, and compliance with local labor laws. This is where Employer of Record (EOR) services can provide invaluable assistance.
TL;DR: Top Global Employer of Record (EOR) Companies
| Company | Strengths | Pricing |
|---|---|---|
| Deel | Best overall EOR, 150+ countries, compliance, payroll, benefits | $499/month base fee |
| Papaya Global | Best for large enterprises, comprehensive HR services | Expensive but full-featured |
| Remote | Best for remote teams and contractors, flexible packages | Easy to use platform |
| OysterHR | Best for HR management, global PEO, AI-driven platform | Industry specialization |
| Velocity Global | Best for project-based engagements, customizable service model | Personal advisor guidance |
| Globalization Partners | Best global presence, 185 countries, scalable solution | Long track record since 2012 |
What is an Employer of Record?
An Employer of Record (EOR) is a company that serves as the legal employer for employees working remotely in different countries. The EOR handles all the HR, payroll, taxes, and compliance responsibilities that come with employing team members globally.
Some key responsibilities handled by an EOR include:
- Payroll – Pay employees in local currency with proper tax withholdings
- Taxes – Manage tax filings and compliance in different countries
- Benefits – Provide health insurance, retirement plans, and other benefits
- Compliance – Ensure adherence to local labor laws and regulations
- Visas – Manage visas and work permits for employees
This alleviates the administrative burdens for companies expanding into new territories. The company contracting with the EOR becomes the “Client of Record”.
Why Do Businesses Use EORs?
There are many benefits of using an EOR for global expansion:
- Reduced risk – The EOR assumes the compliance risks across different countries.
- Cost efficiency – No need to establish local entities in each country.
- Convenience – The EOR handles all HR and payroll tasks.
- Peace of mind – Know you are adhering to local laws.
- Flexibility – Add and remove team members as needed.
- Speed – Onboard new hires quickly and smoothly.
For most companies, partnering with an established EOR is far easier than trying to navigate international HR and payroll themselves. The EOR has the expertise and infrastructure already in place.
Key Criteria for Selecting an EOR
Choosing the right EOR partner is critical when expanding globally. Here are key criteria for evaluating EORs:
- Global coverage – Countries supported with in-house experts.
- Compliance expertise – Deep knowledge of local laws and regulations.
- Customer service – Responsiveness and support quality.
- Pricing – Competitive and transparent pricing.
- Platform – User-friendly online platform.
- Security – Robust data security provisions.
- Experience – Tenure in business and client results.
- Specialization – Focus on specific regions or industries.
Thoroughly vet EORs to find the best fit for your global growth needs.
Top EOR Companies
The EOR industry has exploded in recent years. Here is an overview of the top global EOR providers:
Deel
- Best overall EOR covering 150+ countries.
- Focused on compliance, payroll, and benefits.
- $499/month base fee.
Papaya Global
- Best for large enterprises with 5000+ employees.
- Comprehensive HR services beyond payroll.
- Expensive but full-featured.
Remote
- Best for hiring remote teams and contractors.
- Flexible packages for different needs.
- Easy to use platform.
OysterHR
- Best for HR management including global PEO.
- AI-driven platform.
- Industry specialization.
Velocity Global
- Best for ongoing project-based engagements.
- Customizable service model.
- Personal advisor guidance.
Globalization Partners
- Best global presence with 185 countries.
- Long track record since 2012.
- Scalable solution.
Key Considerations When Using an EOR
Partnering with an EOR comes with some important considerations:
- Data privacy – Ensure compliance with GDPR and data protection laws.
- Local customs – Respect cultural norms and local business practices.
- Tax implications – Understand tax consequences of global employment.
- PEOs vs EORs – In some countries, a PEO may be better.
- Contractors vs. employees – EORs can manage both.
- Termination rules – Clarify how employee exits are handled.
- Legal entity – Determine which entity employs the EOR workers.
Thinking through these aspects helps ensure a smooth EOR engagement.
For most companies, partnering with an established EOR is far easier than trying to navigate international HR and payroll themselves. The EOR has the expertise and infrastructure already in place.
helps ensure a smooth EOR engagement.
Conclusion
Expanding globally presents an array of HR and payroll complexities. Employer of Record services offer a flexible solution to compliantly hire staff and contractors around the world without establishing local legal entities.
Key factors when selecting an EOR include country coverage, compliance expertise, platform experience, and customer support capabilities. Leading EOR providers enable businesses to access global talent quickly and securely.
By leveraging an EOR, companies can focus on their core objectives and accelerate international growth rather than getting bogged down in administrative and legal hurdles. Partnering with the right EOR provides peace of mind for global expansion.
FAQ Section
What is the employer of record employment contract?
An Employer of Record (EOR) employment contract is an agreement between three parties: the employer, the employee, and the EOR. The EOR takes on the role of the legal employer for employees in the country your business is expanding into. The contract needs to be fully compliant with the local law of the country where the worker is employed, while also following your company policies and operations. The EOR is typically responsible for payroll, filing taxes, and local law compliance. EOR services can also include a variety of back office duties that will need to be discussed and agreed upon by the employer and the EOR before a contract is ready to be signed
What is the meaning of PEO?
PEO stands for Professional Employer Organization. It is a type of full-service human resource outsourcing known as co-employment. In this arrangement, the PEO performs various employee administration tasks, such as payroll and benefits administration, on behalf of a business. Some PEOs also have strategic services, but no two are exactly alike, so it’s important to research providers and compare their capabilities. PEOs typically help with payroll and tax filing, benefits administration, and may offer end-to-end talent services, like recruiting and strategic hiring, employee training and engagement, and performance management
What is the employer of record in Safeguard Global?
Safeguard Global is an Employer of Record (EOR) that helps organizations hire workers in a foreign country quickly and compliantly, without having to set up a business entity. When you partner with an EOR like Safeguard Global, they hire local workers on your behalf, taking on the legal and administrative responsibilities, while you manage your team’s day-to-day contributions and performance. Safeguard Global’s EOR services typically include in-country HR teams to support local employees, ensuring compliance with local labor laws, technology to offer a seamless employee experience, negotiating contracts and onboarding workers, and handling payroll, including administering salaries, taxes, and benefits
