Employer of Record(EOR) in America

Hire, pay and manage your emplyees without establishing a local company.

Outsource your Employment in America

Build your America team easily – No local entity needed. EOR handles everything: compliance, payroll, benefits, and recruitment.

EOR America offers comprehensive HR solutions in America. We’re a certified agency and will act as your legal employer, managing all HR aspects for your staff.

Launch in the America Today. Leverage EOR America to explore the market, manage local partners, and build your America team – without an entity setup.

Cost-effective, adaptable, and secure. This approach minimizes risk and keeps costs low while offering the flexibility you need for success in America.

Employer of Record (EOR) Process​

  1. Sign Contract: The client signs a straightforward service agreement to begin working with EOR America.

  2. Get Account Manager: A dedicated account manager is provided to the client for one-on-one support.

  3. Collect Documents: EOR America requests essential documents from the client, like business licenses and employee personal data.

  4. Understand Policies: The client learns about EOR America operational policies and gets access to the user-friendly online portal.

  5. Prepare Onboarding Docs: EOR America creates and sets up important documents such as employment contracts, onboarding checklists, and compliance forms for the client’s review.

  6. Configure Payroll: The client’s payroll information, including salary structures and tax details, are set up in EOR America system.

  7. Onboard Employees: EOR America assists in welcoming and integrating the client’s first set of employees into the company.

  1. Sign Authorization: New hires sign a letter to allow EOR America to manage their personal info.

  2. Gather Info: EOR America collects the new employee’s basic details and work history.

  3. Pay Notice Sent: EOR America informs the client about the first payroll amount due.

  4. Client Pays: The client confirms and sends the payment for the new employee’s salary.

  5. Contract Signed: Both EOR America and the new employee sign the work contract.

  6. Info in System: The new hire’s data is entered into EOR America system.

  7. Set Up Benefits: EOR America handles social insurance, housing fund, and bank account setup for the new employee.

  8. Portal Access: New employees get access to the online portal to manage their HR tasks.

  1. Policy Updates: EOR America informs clients of any changes in government policies that may affect payroll or compliance.
  2. Compensation Adjustments: Clients notify EOR America of any changes in employee compensation, such as raises or bonuses.
  3. Payment Notice: EOR America sends a detailed payment notice to the client, outlining the payroll and benefit costs for the month.
  4. Client Payment: The client reviews and confirms the payment notice, then makes the payment to EOR America.
  5. Salary Distribution: EOR America ensures that employees receive their salaries on time.
  6. Benefits and Tax Payments: EOR America handles the payment of mandatory benefits and individual income tax on behalf of the employees.
  7. Maintenance of Payroll Services: EOR America regularly updates the latest payroll and HR information, ensuring it is readily available and easily reviewable by clients and employees.

     
  1. Work Calendar Confirmation: EOR America and the client mutually confirm the work calendar for the upcoming year.

  2. Annual Salary Report: EOR America compiles and sends an annual salary report to the client, which includes details of both current and offboarded employees.

  3. Report Verification: The client reviews and confirms the accuracy of the annual salary report provided by EOR America.

  4. Government Submission: EOR America submits the updated annual salary report to the relevant government authorities as required.

  5. New Policies Announcement: The government announces any new policies that may affect HR and payroll processing.

  6. Policy Update Briefing: EOR America briefs the client on the updates and changes in government policies that were announced.

  7. System Policy Update: EOR America updates its system to reflect and implement the new government policies.

  8. Data Removal: Upon request, EOR America removes the data of offboarded employees from the system, ensuring privacy and compliance.

  1. Reason Noted: Client explains why an employee is let go.

  2. Plan Made: EOR America creates a termination plan.

  3. Approve Plan: Client agrees to the exit strategy.

  4. Paperwork Ready: EOR America completes exit forms for the employee.

  5. Severance Set: EOR America calculates the severance amount.

  6. Pay Severance: Client sends the severance funds.

  7. Work Handed Over: The employee passes on their duties.

  8. Severance Paid: EOR America delivers the severance to the employee.

  9. Issue Cert: Employee receives a termination cert.

  10. Benefits Managed: EOR America moves and stores benefits info.

  11. Cases Closed: EOR America ensures all is settled.

  12. Refund Given: EOR America returns any leftover deposit to the client.

  1. Notice Sent: Client informs EOR America of their decision to end the service.

  2. Handover Check: Client and EOR America agree on the handover of accounts, materials, and information.

  3. Offboarding Plan: Both parties confirm a plan for offboarding employees, including resignations.

  4. Final Payment: EOR America issues the last payment notice, including any historical balance owed.

  5. Payment Made: Client confirms and pays the final invoice.

  6. Employee Offboard: EOR America facilitates the offboarding of employees.

  7. Transfer of Assets: EOR America hands over all accounts, materials, and information to the client.

  8. Case Closure: EOR America ensures all open cases are resolved.

  9. Deposit Refund: EOR America returns any remaining deposit balance to the client.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is basically a company that acts as your legal employer for remote staff you hire in another country.

EOR services  might also be called manpower outsourcing, employment outsourcing, staffing, or PEO (Professional Employer Organization).

EOR America‘s EOR lets businesses hire America staff legally – they handle the legal side of things.

EOR America EOR Service

EOR America EOR service simplifies hiring in America. Also known as employment outsourcing or employee leasing, it allows EOR America to act as the legal employer for staff you identify in America. While EOR America handles the legal and administrative burden, you retain full control over managing these employees. This service offers a flexible solution, sharing employer responsibilities to ensure compliance and streamline your operations.

Is an EOR the same as PEO?

Every EOR is a PEO, yet the converse is not always true; not every PEO qualifies as an EOR.

An Employer of Record assumes the legal employer status on behalf of a client, outsourcing compliance to the service provider, who then becomes fully responsible for the employee. On the other hand, a Professional Employer Organization does not usually assume complete responsibility for the client’s employees.

EOR America serves as an Employer of Record for clients who lack legal entities in America, thereby handling their employment responsibilities and compliance. Conversely, for clients that possess legal entities within America, EOR America functions as a Professional Employer Organization.

The best EOR service provider in America

Why EOR America?

EOR America, with a track record of decades in the industry, stands as a reliable provider of Employer of Record (EOR) services within America. We provide an all-encompassing solution designed to streamline the hiring and employee management process, ensuring adherence to local legal and regulatory frameworks. 

Eliminate Risk

Avoid allowing HR compliance challenges to threaten the prosperity of your business in America. Reach out to EOR America now to discover more about our Employer of Record service and receive guidance on how we can assist you in maneuvering through the intricate America, thus mitigating the risks of being placed on a blacklist.

Local Presence and Knowledge

A thorough comprehension of the local market trends, cultural subtleties, and customary business procedures.

America Payroll Service

All of our clients have access to our in-house payroll service for record keeping convenience.

Employer of record Cases

EOR as a Business Solution

Utilizing an Employer of Record is optimal in various situations. Here are the top reasons that clients choose EOR America Employer of Record service:
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Reimbursement for Outsourced Employees

Expense Claim Solutions at EOR America

Following a policy revision by the American government concerning expense claims for contracted workers, EOR America has assiduously crafted four tailored approaches. These are designed to ensure a smooth and efficient reimbursement experience for our Employer of Record (EOR) clients. Let’s explore these solutions in detail, examining their complexities and the possible effects they may have.

Solution #1: Global Reimbursement

Clients collaborate with our worldwide associate to handle the payment of reimbursements. Once a fresh service agreement is in place, EOR America manages the invoicing and collection process. The application for reimbursements is made efficient, focusing on transactions in US dollars and strictly applying a maximum limit of USD 5000 for each person on a monthly basis.

VAT Exemption

Customizable Reimbursement Arrangements

Solution #2: Integrated Reimbursement and Salary Structure

This approach merges expense reimbursements with routine payroll, offering clients the choice to handle the personal tax liabilities. Although this method reduces the service charges related to expense claims, it may result in employees facing increased Individual Income Tax (IIT) liabilities.

Fee-Free Option

Frequently Asked Questions

An EOR helps businesses hire employees in America without needing a local entity, while a PEO provides HR services like payroll and benefits management for businesses that already have a legal entity in America.

The hiring process in America can vary significantly based on a number of factors including the industry, the level of the position, the demand for the role, and the company’s specific needs and processes. Here’s a general overview:

  1. Job Posting to Application Review: This phase can last from a few days to a couple of weeks. Companies often post job openings on various platforms and may take time to review the incoming applications.

  2. Interview Process: Interviews can take place over one to several weeks. There may be multiple rounds, including phone screenings, in-person interviews, and possibly technical or behavioral assessments.

  3. Background Checks and Reference Checks: Once a candidate is selected, background and reference checks are typically conducted. This phase can take anywhere from a few days to a couple of weeks, depending on the complexity and depth of the checks.

  4. Offer and Negotiation: After a candidate accepts a job offer, there may be a negotiation period which can take a few days to a week.

  5. Onboarding: The time from job offer acceptance to the candidate’s start date can vary. Some companies have a quick turnaround, while others may have a more extended onboarding process that can take several weeks.

In total, a streamlined hiring process might take as little as two to four weeks, but it’s not uncommon for the process to extend to two months or more, especially for more complex roles or when filling high-level positions.

It’s important to note that this is a general guideline and the actual timeline can be influenced by many variables, including the company’s size, the urgency of the role, and the candidate pool available. Companies aiming to improve their hiring speed often focus on optimizing each step of the process to minimize delays.

For a more specific or company-related hiring timeline, consulting with a human resources professional or a recruitment agency can provide detailed insights tailored to the particular context.

Yes, a foreign company can hire employees in the USA without a local entity by using a service known as Employer of Record (EOR). The EOR acts as the legal employer on paper, handling all the legal, tax, and employment responsibilities for the foreign company’s employees in the USA. This allows the foreign company to bypass the complexities of setting up a legal entity and navigating local employment laws and regulations.

Here’s how the EOR service typically works:

  1. Employment and Management: The EOR will manage the hiring process, including background checks and employment contracts, and will act as the official employer for legal purposes.

  2. Payroll and Benefits: The EOR will handle payroll, tax withholdings, and payment of social security and other benefits on behalf of the foreign company.

  3. Compliance: The EOR ensures that the foreign company’s employment practices are in compliance with all local, state, and federal laws.

  4. Risk Mitigation: By using an EOR, the foreign company can avoid many of the risks associated with non-compliance and can focus on its core business activities.

  5. Cost and Time Efficiency: Establishing a local entity in the USA can be costly and time-consuming, with average costs around $80,000 and taking up to 5 months1. Using an EOR can significantly reduce these costs and time frames. Currency and Payment: EORs also simplify the process of paying employees in local currency and dealing with international transactions1.It’s important to choose a reputable EOR provider that has a deep understanding of the USA’s legal and employment landscape to ensure a smooth and compliant hiring process for the foreign company.

An Employer of Record (EOR) helps foreign companies manage the payment of social security and taxes for their employees in the USA by taking on the legal responsibilities of an employer. Here’s how an EOR typically assists:

  1. Compliance: The EOR ensures that payroll practices adhere to all relevant U.S. federal, state, and local laws and regulations.

  2. Tax Withholdings: They calculate and deduct the correct amount of income tax from employees’ wages as per U.S. tax laws.

  3. Social Security and Medicare: The EOR handles the withholding and payment of Social Security (FICA) and Medicare taxes.

  4. Employer Contributions: They are responsible for making the employer’s contributions to social security and other benefits programs.

  5. Filing Returns: The EOR files necessary tax returns and reports with the IRS and state tax authorities.

  6. Payroll Management: They manage the entire payroll process, including calculations, direct deposit, and providing pay stubs.

  7. Risk Mitigation: By handling payroll and tax obligations, the EOR reduces the risk of penalties for late or incorrect payments and filings.

  8. Currency and Payment: The EOR simplifies the process of paying employees in U.S. dollars and managing international transactions.

  9. Cost-Effectiveness: Using an EOR can be more cost-effective than establishing a legal entity in the USA.

  10. Time-Saving: The EOR saves the company time and resources by handling all payroll and tax-related tasks.

By utilizing an EOR’s expertise, foreign companies can efficiently manage their U.S. payroll and tax obligations, ensuring compliance and focusing on their core business activities.

In Canada, if an employee is injured at work, the general process for handling the situation is as follows:

  1. Employer’s Responsibility: Employers must ensure a safe working environment and provide necessary medical aid and support when an employee is injured. They are also required to report the injury to the appropriate Workers’ Compensation Board (WCB) and assist the employee in filing a claim for benefits.

  2. Workers’ Compensation: Employers in Canada are typically required to purchase workers’ compensation insurance. This insurance provides coverage for employees who are injured or become ill as a result of their work. The system operates on a no-fault basis, meaning that benefits are available regardless of who was at fault for the injury.

  3. Benefits and Compensation: Injured employees may be eligible for various benefits, including income replacement to compensate for lost wages, medical benefits to cover necessary treatments, and vocational rehabilitation services to help them return to work.

  4. Legal Framework: Labor laws in Canada, both federal and provincial, provide a framework for the rights and responsibilities of both employers and employees in the event of a workplace injury. These laws ensure that the process for addressing workplace injuries is fair and consistent.

  5. Injury Assessment: There may be a standardized system in place for assessing the severity of the injury and determining the level of compensation or benefits the employee is entitled to.

  6. Access to Healthcare: Canadian employees have access to a universal healthcare system, which means that medical treatment for work-related injuries is generally covered.

  7. Prevention and Safety: Employers are encouraged to focus on preventing workplace injuries through safety training and risk management. This not only protects employees but can also reduce the financial burden on the company associated with workplace injuries.

  8. Economic Impact: Proper handling of workplace injuries can help minimize the economic impact on the company by reducing the costs associated with compensation, lost productivity, and potential legal liabilities.

In summary, if an employee in Canada is injured at work, the employer is expected to provide support and report the incident to the WCB. The employee may be entitled to benefits through the workers’ compensation system, which operates on a no-fault basis. The legal framework ensures that the process is fair and that both the employee and the employer are protected. Employers are also encouraged to focus on safety to prevent such incidents.

Based on the search results provided, it appears that there is no explicit requirement for a foreign employer to have a local director or legal representative specifically for the purpose of hiring employees in the USA. However, there are several considerations that may influence this decision:

  1. Corporate Maintenance and Legal Entity: Depending on the nature of the business and its operations in the USA, a foreign employer may need to establish a local entity or register a foreign entity locally. This process could involve appointing directors or officers who meet certain legal and regulatory requirements.

  2. Tax and Regulatory Compliance: There may be tax, state corporate law, and other regulatory requirements that necessitate the establishment of a local entity or the appointment of a local representative. This could include a local corporate secretary or a legal or administrative representative to ensure compliance with local laws.

  3. Employment Law: Federal and state employment laws in the USA protect job applicants and current employees from discrimination and other offenses. Compliance with these laws is crucial, and while not explicitly requiring a local director or legal representative, having someone familiar with local laws can be beneficial.

  4. Virtual Office and Physical Presence: The sufficiency of a virtual office and the need for other physical presence requirements may also influence the decision to appoint a local representative. A local representative could help manage a local office lease or other physical presence requirements.

  5. Corporate Governance: The responsibilities of company boards in the USA include selecting nominees for election, developing corporate governance principles, and other governance-related tasks. While not directly related to hiring, having a local director or representative could facilitate these governance responsibilities.

In summary, there are various legal, regulatory, and practical considerations that may lead a foreign employer to appoint such a person. It is advisable to consult with legal and employment law experts to understand the specific requirements and best practices for hiring employees in the USA.

In Canada, employees are entitled to paid annual leave based on their length of continuous service:

  1. After one year of continuous service, employees are entitled to two weeks of annual leave.
  2. After five years of continuous service, this entitlement increases to three weeks of annual leave.
  3. After ten years of continuous service, employees are entitled to four weeks of annual leave.

It’s important to note that these entitlements apply to federally regulated employees, and provincial laws may also apply, potentially offering additional entitlements or having different thresholds. Some provinces may have further regulations regarding paid leave, including sick leave, maternity leave, and parental leave. Employers may also offer more generous leave policies than the minimum required by law.

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