What is the value proposition of EOR services for international payroll?

December 22nd, 2022

International payroll can be challenging, especially when you’re a small business. You might not have the resources to take on the taskofmanaging international payroll in-house.International payroll has various aspects like liability for errors or compliance with laws and regulations. These increase the complexity of managing it seamlessly.

An employer of record (EOR) solution is one ideal way companies can manage their international payroll needs without having to establish a legal entity overseas—and it’s becoming increasingly popular.

What is an Employer of Record?

An employer of record (EOR) is a third party that operates as the employer  for tax purposes. This process is used by companies to avoid the administrative burden of managing payroll, benefits, and other employee-related issues.

An Employer Of Record in India is typically an organization with expertise in managing these services and can provide them at a lower cost than you would incur if you were handling them yourself.

EOR services can help companies manage their international payroll needs in countries where they don’t have a legal entity.

Understanding the local laws and regulations of the country you’re sending employees to work in is critical. An EOR contract helps in ensuring that your business’s tax liabilities are met and that you’re compliant with local laws.

An EOR provider in India will help in accomplishing this mission-critical objective.

It makes sense to have one point of contact via an EOR service provider in India for all employee-related paperwork and processes. This gives employees access to more information about what’s happening in their lives as it relates to their roles at work (e.g., benefit plan offerings). Their EOR services also provide transparency for companies when communicating with employees about organisational changes or opportunities.