How Does an Employer of Record Work?

So you want to hire globally? Or maybe you are just looking for new ways to grow your team? How do you even begin, especially if you are looking to get some global talent? Often, the easiest and best path is to work with an employer of record service, but how does an employer of record work? As always, TRUSS is here to support you with answers!

What is an Employer of Record?

We have a blog post on this topic already, but just to give you a brief primer, an employer of record is a service that allows you to quickly and easily employ people in other countries. Employer of Record is also referred to as an EoR, and it should be noted that they do differ from a Personal Employer Organization or PEO.

What Does an Employer of Record Handle?


The list of things that an employer of record can do for you is long and can range a little bit from service to service. Generally speaking, an employer of record will handle:

  • Time-tracking
  • Payroll
  • Employee Insurance
  • Employee benefits
  • Local employment compliance
  • Taxes
  • Background checks
  • Onboarding
  • Termination

Every employer of record service is different, but some offer a complete platform where all of the stuff listed above and more can be tracked and monitored. Additionally, an EoR may also provide recruiting services, consulting, and general support for your global team.

Of course, if you are looking for all of that and more, then you should seek the support of TRUSS. We aim to be end-to-end in the global recruiting game and we can help you start recruiting in Central Asia today!

What Companies Should Be Hiring in Emerging Markets?

Who is Liable with an EoR?

Liability is often a concern, especially when you have to work within the rules and regulations of another country’s laws. Ensuring that you are protected while exploring your global remote options is important. If you set up your own entity, you are going to be exposed to all the liability. With an EoR service, you do not have liability when it comes to employment issues at all. This includes compliance, payroll, and any relevant tax laws.

Why Can’t You be Your Own EoR?

There is nothing stopping you from being your own EoR for your global team. In fact, TRUSS has people working for us in other countries. The difference here is that we already have entities set up in these countries that allow us to hire, pay, and work with our employees over there.

Setting up your own entity is a costly process that not only takes money but it takes a significant amount of time. You have to devote ongoing effort to it as well to ensure that you remain compliant with local laws and regulations regarding employment, taxes, and more. Additionally, these laws vary from country to country making it even more difficult to maintain if you want to bring more than one country into the fold. An EoR, especially one with at least a few entities in a region, makes all of this easy. Moreover, it’s low risk. You don’t have to put in all the investment just to try it out.

What does an Employer of Record Service not do?

It sounds like an EoR service does a lot, but what don’t they do? They don’t manage your team for you. For most clients, this is a good thing. You want to have a direct line to your staff without an extra layer between you and the people that make your product. This also means that if you want your team to grow or shrink, you are still in charge of that, and if a team member isn’t working out, we can begin the termination process for you.

However, there are some clients that would actually prefer to offload it all. They just have a vision in mind and they want that vision executed. If you don’t have a project manager that can lead your global team, then there may be another option. If having your team managed for you is important, then you should consider our sister company Accomplice, as that’s exactly the type of service that they provide.