The employer of record is an increasingly important concept in today’s complex labor market. But what does it mean, and why should you care? In this blog post, we’ll look at the differences between traditional employment arrangements and EORs, as well as the advantages of choosing EOR over the other. Read on for more details!
Traditional Employment VS Employer of Record
The two most common types of employment arrangements are traditional employment and employer of record. Here’s a look at the differences between the two:
Traditional Employment Arrangements:
In a traditional employment arrangement, the employer is responsible for all aspects of the employee relationship, including hiring, firing, payroll, benefits, and workers’ compensation. The employee is an employee of the company, and the company is responsible for all employment-related matters. This arrangement is often used when an employee is working in a single location.
Employer of Record:
An employer of record (EOR) is a third party that takes on legal responsibility for an employee. The EOR handles all aspects of the employment relationship, including hiring, firing, payroll, benefits, and workers’ compensation. The EOR acts as the employer for purposes of compliance with laws and regulations. This arrangement is often used when an employee is working in multiple locations or when the employer does not have a presence in the country where the employee works.
Benefits of Using an Employer of Record Provider Like BIPO
There are many benefits of using an employer of record provider like BIPO, including:
-You can focus on your core business: When you outsource your HR and payroll functions to an employer of record provider like BIPO, you can focus on your core business and leave the HR and payroll management to the experts.
-Cost savings: An employer of record provider like BIPO can often save you money on HR and payroll costs, as they have economies of scale and can negotiate better rates with service providers.
-Flexibility: An employer of record provider like BIPO can provide you with flexibility in how you structure your workforce, including the ability to hire independent contractors or employees in different locations.
-Compliance: An employer of record provider like BIPO can help you ensure compliance with employment laws and regulations, as they are experts in this area.
By outsourcing their payroll, taxes, and other HR functions to an EOR provider, businesses can save time and money while still maintaining control over their workforce. With the right EOR provider by your side, you can take advantage of this valuable service and give your business a competitive edge in today’s ever-changing marketplace. With over 10 years of experience and knowledgeable workers, BIPO can definitely be your perfect EOR provider!