Employ compliantly, quickly and confidently - worldwide

The short answer is yes, but it means either setting up your own legal entity in that country or engaging workers as contractors. Both approaches have advantages and disadvantages.

If you establish your own legal entity, you'll be responsible for running the operation in the new country — hiring lawyers, payroll experts, benefits administrators and other specialists. That can make sense if you plan to employ hundreds of people there, but if you're only hiring a handful or a few dozen, an EOR is usually more cost-effective.

Hiring workers as contractors demands vigilance. International contractor misclassification is a serious issue and can result in significant fines and penalties. Using an EOR shields your business from potential compliance risks by ensuring workers are properly classified as employees.

It's important to understand that not all employers of record operate in the same way, and there are significant differences in how EOR services are provided.

It's important to understand that not all Employers of Record operate in the same way, and there are significant differences in how EOR services are provided. Some EORs, like Remote, own their own legal entities in each country they operate in, while others act as intermediaries without owning any entities. Some EORs may use a mix of their own and partner entities. It’s crucial to choose an EOR that fits your specific compliance needs in the countries where you plan to hire.

An Employer of Record (EOR) can hire employees on your behalf in other countries, while a Professional Employer Organization (PEO) may not. Some providers call themselves 'international PEOs' and offer EOR services. Others using the term 'international PEO' only provide services for companies that already have legal entities in those countries.

Think of it this way: if you need to hire in a country where you don’t have a legal entity, use an EOR. If you already have a local entity and want help with HR tasks like payroll and benefits, a PEO is appropriate. Essentially, a PEO offers similar services to an EOR but doesn’t take on the legal employment obligations in other countries.

Learn more about the differences between an EOR and a PEO in our helpful guide.

Employer of Record (EOR) costs usually come in two forms: a flat fee or a percentage-based pricing model. Flat fees are charged per employee, regardless of their position or salary. Percentage models charge a fee based on a percentage of the employee's salary; these fees can vary depending on the employee's level and pay.

Be wary of EOR pricing models that use a percentage. Global employment costs can fluctuate widely, but a reliable EOR will account for these costs and give you a clear idea of your bill upfront. Percentage-based fee structures might encourage companies to keep worker salaries low while increasing payments to third-party providers.

Remote’s EOR pricing is $599 USD per month when paid annually, or A$1,069 when paid monthly. There are no hidden fees, minimums, contract lengths, or exclusivity agreements. Choose the plan that best fits your team’s needs. View our pricing page to see how easy, quick, and affordable growing your global team can be.

The main duty of an employer of record (EOR) is to serve as the legal employer for your workers in other countries. Your EOR protects your company from liability and compliance risk by employing those workers on your behalf.

An EOR also handles the complex HR tasks tied to hiring across jurisdictions. Regulations differ widely — including pay frequency, acceptable currencies, leave entitlements and more. EORs manage these details so you can spend less time on admin and more on recruiting staff to grow your business.

An EOR doesn't manage day-to-day tasks or performance. You interact with employees hired through an EOR just as you would with any other employee. The only difference is who handles the paperwork.

An Employer of Record (EOR) is a third-party provider legally responsible for another organization's employees. Among other responsibilities, an EOR manages the payroll administration for employees in other countries. When you hire someone in another country through an EOR, you provide the funds to the EOR, and they handle the distribution of salaries, including any necessary tax deductions, social security contributions, and retirement account funding.

Working with an EOR lets you manage international payroll complexities in compliance with foreign laws. An EOR allows you to employ workers in other countries without needing to become an expert in local payroll rules and customs. You simply find the right candidate and let your EOR manage the details.

When comparing EOR services, consider the number of countries where they provide direct services, the range of global HR solutions they offer such as payroll, benefits administration, onboarding and local taxes, as well as how thoroughly they ensure compliance with local laws in each country they serve. Additionally, take the quality of the user interface into account.consider the number of countries where they provide direct services, the range of global HR solutions they offer such as payroll, benefits administration, onboarding, and local taxes, as well as how thoroughly they ensure compliance with local laws in each country they serve. Additionally, the quality of the user interface should be taken into account.

Only partner with an EOR that owns its own local entities in the countries where you want to hire. Otherwise, you could find your employees engaged through an unknown third party, leaving you with limited oversight or control over their experience.

Furthermore, your EOR should offer strong protections for your intellectual property.

Without robust protections you could end up in protracted legal disputes over IP ownership across jurisdictions — a nightmare for any company. Here are some questions to ask:

• Do you own an entity in this country, or do you outsource employment and compliance to a third party?

• How do you safeguard intellectual property and invention rights in this country?

• Do you share employee data with any third parties?

• Do you store all employee documents for employees in all countries in one easy-to-access location?

Remote owns all of our entities, provides industry-leading IP protection and data security, and offers best-in-class global employment software to meet your needs.

Yes — using an Employer of Record is completely legal in most countries. However, the highest level of legal compliance is typically offered by EORs that own their own business entities in the countries where you want to hire.

Before you start working with an EOR, make sure they own a local entity and have the necessary expertise to properly manage localised payroll, health benefits, taxes and any other benefits or compensation you might offer, such as stock options.

If you are unsure when to use an employer of record, learn more about why an EOR is often the most straightforward approach to international employment.

When you partner with Remote, we'll guide you through an efficient five-step process to set you up for long-term success.

• Personalized start: Receive a welcome message from your assigned Customer Success Implementation manager for an engaging start to your journey with us.

• Comprehensive overview: You’ll meet your Remote expert to walk through the implementation program, offering clear insights and setting the stage for a successful partnership.

• Product walkthrough: Get a detailed demo of key EOR features to achieve quick, effective results for your team.

• Ongoing support: Benefit from educational content and immediate assistance with any questions for continuous support and peace of mind.

• Smooth onboarding: Your implementation manager will guide you through your first EOR onboarding, ensuring a seamless setup and setting a solid foundation for future hires.

After your first employee is onboarded, you'll work with your named Customer Success Manager who will be your trusted adviser for all your employment needs.