Lawyers and lawmakers love to come up with fancy terms for things, and sometimes those terms don’t really mean much. Other times, they can mean the world, and we are willing to bet that after reading this, the term employer of record will mean the world to you. What is an employer of record or EOR?
What Does Employer of Record Mean?
When you work with global employers like Truss, you will hear us say employer of record or EOR a lot. It’s a bit of a habit for us, but it’s for good reason. Essentially, an employer of record is an organization that has done all the hard legal stuff so that they can be the legal employer of an employee in a different country.
The reason we talk about EORs so much is because Truss is one, and we can be one for you. Without you having to go through all the work of setting up an entity in another country or even multiple countries, you can count on us to be your employer of record.
What Does an Employer of Record Do?
That’s a lot of talk, but what does an employer of record handle? Trust us, we are more than just a bunch of pretty faces, and we do far more than just call ourselves an EOR.
- Payroll Taxes
- Timesheet Processing
- Employment Contracts (Creating, Maintaining, and Terminating)
- Background Checks
- Employee Onboarding
- Insurance and Benefits
When Should You Use an Employer of Record?
All of that is well and good, but you may be thinking, you already do that for your own employees in the U.S. How different can it be? It can actually be very different, and over a decade ago, some of our founding members found that out the hard way. It’s not just different, but also difficult, nuanced, and expensive. Instead, you can trust someone like Truss who has laid the groundwork for you. There are many situations in which Truss is just the smarter move.
- Grow Smart With Truss—Do you just need to grow? Do you want to get the right people for your team with skills that aren’t easy to find? Then consider building your team with Truss.
- Truss is Your Warp-speed—You’ve got a great idea, a great product, and a great business, but you need developers yesterday, and you need them to be truly world-class. Setting up an entity can take months, hiring with Truss could take days or maybe even minutes.
- Use Truss as a Guard—Do you already have independent contractors working for you in other countries? Are you concerned about tax and other legal issues getting between you and the people that you already love working with? Then bring them on full-time with Truss as your EOR.
- Acquisitions with Truss—It’s time for everyone to grow globally, and maybe you already have or are going to with an acquisition, but the acquisition is weighing you down because you have no way to pay your new employees legally. Sometimes an acquisition doesn’t include the entity that made the payroll and benefits processes tick in another country. Truss can be your quick way to take back control.
- Truss as an Exploration Tool—Maybe you do want to do all the work of creating an EOR and building a global team yourself. Honestly, more power to you, but before you do, you can utilize Truss to evaluate what other markets are like to work alongside. Consider it a trial run, one with a lot less cost and hassle.