What Is an Employer of Record?
An Employer of Record (EOR) is a third-party company that legally employs workers on your behalf in a country where you have no entity, handling payroll, tax, and compliance.
Key takeaways
- An EOR is the legal employer of a worker in a country where the hiring company has no entity.
- Typical EOR cost: $400-$700 per employee per month in service fees.
- Typical timeline: 2-4 weeks from decision to employed.
An Employer of Record (EOR) is a third-party company that becomes the legal employer of a worker in a country where the hiring company has no registered entity. The EOR handles local payroll, tax withholding, statutory benefits, and labor-law compliance, while the hiring company directs the worker's day-to-day activities.
Typical cost: $400-$700 per employee per month in service fees, on top of gross salary and statutory costs. Typical timeline: 2-4 weeks from decision to employed.
For the full breakdown, see the Employer of Record: The Complete Guide.