In order to remain compliant with a host of laws and industry regulations when employing foreign candidates for roles within your business, it can be important to partner with an employer of record to ensure everything runs as it should. From streamlining HR protocol to freeing up time and effort that can be dedicated elsewhere, not only will you have peace of mind, but also improve the way your business functions for better productivity.
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Why work with an employer of record?
An employer of record is a dedicated employment service that can help businesses of all sizes and niches to legally hire talent from countries outside of their own. Under typical circumstances, you will need to set up a local entity to do this – and it can be a lengthy and costly process. With an employer of record however, everything will be taken care of, including the responsibility of traditional employment tasks and liabilities that would normally fall to you.
You can expect an employee of record to:
- Process and fund payroll
- Create and maintain employment contracts
- Collect and process time sheets
- Handle tasks relating to unemployment
- Issue any correct and necessary employment forms
- Undertake employee onboarding (including sourcing top talent locally, as well as across the globe)
- Handle employee terminations
- Correctly complete and store forms relating to employment
- Maintain certificates of insurance
- Complete background checks and drug screenings
- Take care of workers’ compensation
- Determine and execute necessary benefits
- Deposit and file taxes
The benefits at a glance
When it comes to partnering with an employer of record, the main benefit will be the time saved by having expert assistance. This can be especially true when considering the handling of overseas employees, as employment laws and best practices for different countries can be difficult and nuanced to learn (and therefore comply with). Not only will international staff provide a more diverse working environment that can be an asset to building a solid brand, but it can also help businesses expand their reach into global markets.
Another benefit is that roles will be clearly defined, so businesses will have the added assurance that they retain control, while the employer of record will be the one liable for employment issues and payroll compliance and tax laws (as they act as the legal employer for contract employees on behalf of the company).
Is partnering with an employee of record going to be worthwhile?
The good news is that companies of all niches and sizes will have the ability to widen their talent pools and hire individuals whom they may not otherwise have had access to. As the modern working environment is expanding and catering more and more to work from home staffing that can incorporate global employees, it can be important to stay ahead of the curve to remain competitive. An employer of record will have the necessary skills and understanding to make the process simpler and ensure compliance – and can undertake all of this at an affordable rate that won’t break the bank.
