Purple Truss Logo and Difference Between an EoR and AoR Text on Light Blue Background

Tech companies interested in hiring abroad are faced with a laundry list of challenges – first and foremost is finding the right people to add to your team. U.S.-based companies that hope to hire a global remote team have to determine if they want to hire independent contractors or full-time remote employees. With that decision made, companies are faced with logistical and legal challenges that can be addressed with the help of an Employer of Record (EoR) or an Agent of Record (AoR).

Not familiar with those terms? Truss may be able to help with an overview of the differences between an EoR and an AoR that will help you determine which is the right fit for you and your company. Truss provides tech companies with a comprehensive employment platform to help find, recruit, hire, and manage remote global employees in Central Asian countries like Uzbekistan, Kazakhstan, and Georgia – and our team is here to answer your questions about hiring global talent.

Contact the Truss Team today to learn more about the services we provide!

READ MORE: Employer of Record vs Staffing Agency

Employer of Record vs Agent of Record

Do you need an employer of record in Central Asia? Maybe an agent of record is the right fit? We know it can be complicated to know which is the right fit for your tech company – but we hope that this employer of record vs agent of record comparison will highlight key differences. The first step to finding the right fit for your company is to define what each term means and how it impacts your business.

What Is an Employer of Record?

An employer of record will function as the legal employer for global employees and in many ways is an extension of your own company. With an employer of record at your side, remote employees across the globe will work for your company – but the EoR will handle onboarding, payroll, tax deductions, benefits, administration, and will ensure you remain compliant with local labor laws in that country.

What Is an Agent of Record?

Are you hoping to hire an independent contractor? An agent of record works as a middle man between your company and independent contractors in a different country. When you have an AoR on your side, they will oversee any legal aspects of contracts and agreements with independent contractors and function as a combination administrator, attorney, and compliance officer for contractors.

Terms of Employment Contract with Pen
Clipboard with Independent Contractor Agreement and Text

What Are Key Differences Between an EoR and an AoR?

Employer of Record

  • Function – Manages employment-related responsibilities for global remote employees as an extension of your own HR Department that include employment contracts, payroll, employment benefits, tax filings, and compliance with local employment laws.
  • Management – Is the legal employer for both freelance employees and regular employees and manages human resources and employment compliance issues for your global employees.
  • Local Entity – With the help of an EoR, you have no need for a local entity in the country where your remote workers are employed – which gives you greater freedom to employ people in new markets like Central Asia and makes it simpler to add global remote employees.
  • Contracts – Will manage employment contracts and payroll to ensure that they meet the legal standards for local employment laws.
  • Best Use – Works best for companies who hope to hire employees and/or contractors in an emerging market and remain compliant with local laws without a local entity in that country.

Agent of Record

  • Function – Handles legal and compliance issues with independent contractors around the globe to include employee classification, pay, tax filings, and compliance with local employment laws. 
  • Management – Only manages employee classifications and payment for independent contractors and freelance employees.
  • Local Entity – Helps companies establish a local entity when needed to employ contractors in foreign countries.
  • Contracts – Checks and manages employment contracts with clients, vendors, and partners in new markets.
  • Best Use – Works best for tech companies that want to hire freelance developers or contractors in Central Asia.

READ MORE: International Contractor vs Employee 

Why Choose Truss as an Employer of Record?

Do you need an employer of record or agent of record? Has this overview of the differences between an EoR and an AoR helped? If you are still not sure – Truss is here to help answer your questions.

Tech companies that hope to hire long-term employees in emerging markets like Central Asia will want to hire an employer of record. An employer of record will handle more administrative and management aspects of your team than an agent of record and provides more legal protection for you and your business. An employer of record is an efficient, effective, and affordable way for you to expand your team to include talented remote developers, engineers, and specialists across the globe and Truss is the right fit.

Contact Truss today to learn more about how we can help your team expand as your employer of record!