27.11.2023 line employer of record

Understanding Employer of Record (EOR): A Comprehensive Guide

In this article, we will explain what EOR is, as well as other definitions related to the whole scope of operation Employer of Record

So, what precisely does the term “Employer of Record” entail? (EOR)?

An Employer of Record (EOR) is an entity that legally employs workers on behalf of another business, shouldering full responsibility for employment tasks and liabilities. The EOR handles a range of functions, including:

  • Executing payroll processing and funding
  • Handling tax deposits and filings
  • Overseeing unemployment and workers’ compensation matters
  • Issuing Forms W-2
  • Managing the collection and processing of time sheets
  • Establishing and maintaining employment contracts
  • Facilitating employee onboarding for new hires
  • Ensuring compliance with local employment laws
  • Handling benefits administration
  • Termination of employees
  • This comprehensive service is often facilitated through a software platform, streamlining communication, and providing analytics.

Benefits of an EOR (Employer of Record)

The use of an EOR offers several advantages:

  • Time and Cost Efficiency: Outsourcing payroll and HR functions can save considerable time and effort for businesses, allowing them to focus on core operations.
  • Cost-Effective Global Expansion: EORs are especially valuable for businesses looking to expand globally without the need to establish entities in multiple countries.
  • Compliance: EORs stay updated on local and international laws, ensuring compliance and mitigating legal risks.

Responsibilities of the Business vs EOR

While the client business maintains operational control and workplace safety responsibilities, the EOR assumes liability for employment matters, ensuring compliance with payroll and tax laws.

Employer of Record in Contract Staffing

In the realm of recruiting agencies providing contract staffing, the EOR acts as the official employer for contract employees. Recruiters can choose to handle back-office responsibilities internally or enlist the services of a contract staffing back office provider.

Global Employer of Record

EOR services extend beyond recruiting, catering to businesses seeking to hire employees from different countries without setting up local entities. These EORs facilitate payroll and HR management.

How to Choose the Right Employer of Record

When selecting an EOR, consider the following:

  • Presence in Target Countries: Ensure the EOR operates in the countries where your employees are located.
  • Support Services: Evaluate the support services offered, such as compliance assistance and onboarding support.
  • Global Employment Platforms: Consider platforms like Oyster, which provide a one-stop solution for global employment needs.


An EOR differs from a Professional Employer Organization (PEO) in that employees are not ‘co-employed.’ While a PEO shares employer responsibilities, an EOR assumes full responsibility for hiring employees overseas.

Advantages of using an EOR

People Operations Compliance: EORs handle paperwork and compliance, saving time and ensuring accuracy.

Compliance with Local Laws: EORs navigate local employment laws, providing businesses with peace of mind.

Flexibility in Staffing: EORs enable flexible staffing options, particularly beneficial for startup companies.

Cost Savings: Utilizing an EOR is more cost-effective than setting up entities in multiple countries.

Faster Expansion: Onboarding with an EOR is quicker, facilitating faster team expansion.

Diverse Talent Pool: Building a global team through an EOR enhances diversity and perspective.

In conclusion, choosing the right EOR is crucial for businesses aiming to navigate the complexities of global employment seamlessly. Carefully assessing the services, global presence, and support offered by potential EORs ensures a successful partnership.

Take advantage of the opportunity to employ employees in Poland thanks to Bizky Employer of records

    Have a questions?

    Send us a message!

    By submitting this form, you agree and consent to your personal data by Fundację AIP i Bizky sp. z o.o.

    More articles

    employer of record

    Employer of record – Poland

    For conducting business activities in the territory of Poland, foreign entrepreneurs from EU member states can establish branches…

    Read more
    employer of record

    The PIT 0 for young freelancers? THERE IS A SOLUTION FOR THAT! Just issue invoices through Bizky

    Zero PIT for young freelancers? THERE IS A WAY! Simply issue invoices through Bizky. As of August 2019,…

    Read more
    employer of record

    History and Transformation of Academic Business Incubators (AIP)

    Discover how the first business incubator in Poland, after 19 years, underwent a transformation to conquer the global…

    Read more