Major Tax & Payroll Benefits When Using an EOR
From introducing fresh ideas to your organization to accessing global talent and markets, hiring overseas presents many growth opportunities. However, it can pose an administrative challenge if you don’t understand the target country’s labor market. That’s why using an EOR is a good idea.
An employer of record (EOR) takes over employee management, including cross-border recruitments, insurance, payroll, taxes, and benefits. However, the employer remains in charge of crucial operations like terminations, performance reviews, and staff meetings. An EOR benefits your tax and payroll systems in the following ways.
Global payrolls aren’t the same as paying your local team. You have to deal with currency changes, multiple payment methods, and high bank fees. By using an EOR, you ensure payroll accuracy to reduce costs and streamline data handling and record-keeping. An employer of record also guarantees timely salary payments to improve employee morale and retention. Likewise, EORs can identify reliable payroll providers and manage multiple systems.
Save Time Using an EOR
Hiring overseas can be costly and time-consuming. In addition to training HR staff on foreign labor laws, you need permits, legal counsel, and a new recruitment strategy. By delegating recruitment roles to an employer of record, you concentrate on your core business and on improving the employee experience.
Apart from improving physical and mental well-being, benefits increase work satisfaction, employee loyalty, and your company’s reputation. By using an EOR, you ensure international employees access various benefits depending on their location. That includes sick leave, allowances, wellness programs, and paid time off. Furthermore, an employer of record handles social contributions such as pensions, taxes, and insurance.
Fewer Compliance Risks
Global employment laws are constantly changing and vary from country to country. Because they understand insurance, licensing, and worker classification laws, using an EOR keeps you ahead of your obligations to prevent fines and lawsuits. Similarly, the EOR drafts employment contracts that comply with specific jurisdictions. Such contracts can be casual, fixed-term, or even indefinite.
Moreover, the EOR takes full responsibility in case of non-compliance. Ordinarily, the employer of record will provide one point of contact for your needs. That way, you know who to reach in the event of a staffing issue with the new country.
We’re the EOR You Need
You can only reap these payroll and tax benefits from the right EOR. By taking over employer responsibilities, nextSource ensures timely and cost-effective payroll operations for smoother local and international hiring. Do you need help with your employer duties? Leave the administrative burden to us and you can focus on customer satisfaction!