EMPLOYER OF RECORD

What is an employer of record?

An employer of record is an organization that serves as the employer for tax purposes while the employee performs work at a different company. The employer of record takes on the responsibility of traditional employment tasks and liabilities.

The employer of record handles all personnel functions, including:

• Processing and funding payroll

• Depositing and filing taxes

• Handling unemployment

• Handling workers’ compensation

• Issuing Forms W-2

• Collecting and processing time sheets

• Creating and maintaining employment contracts

Benefits of Employer of Record

By using an employer of record, recruiters and other businesses can free up time. Not having to deal with payroll and HR issues can potentially save hours.

• Cost-effective way to outsource payroll and HR functions.

• Can be especially helpful when dealing with payroll processing and employment laws for employees in multiple states.

  • We stay updated on the state and local laws so you don’t have to worry about learning and complying with laws in multiple places.

• Potential reductions in unemployment costs

• Potential reductions in workers compensation

• Reduction in internal administration hours

For our clients, we execute the following:

• Payroll: Setting up and managing national and international employees’ direct deposits, taxes, tax contributions, payment schedules, and any other payroll-related matter, alongside the accounting and bookkeeping services necessary with each.

• Benefits: Administering medical, dental, vision, and other cultural or location-specific benefits. As your employer of record, we also manage benefits like 401(k)s and 401(k) equivalents, commute reimbursement, flex spending accounts, paid time off, paid sick leave, and more.

• HR/legal: Managing compliant hiring and onboarding practices, plus appropriate employee classifications, statuses, tax filings, registration, and more as mandated by local laws.

• Miscellaneous services: we can also include administering family or medical leave, short and long-term disability, workers’ compensation, staff performance evaluations and management, and even termination negotiations.