Staying on top of compliance concerns can be tedious and time-consuming. Plus, with possible fines, legal fees, and damage to a company’s reputation on the line, the stakes are high. Many companies find that having an in-house team dedicated to keeping up with the laws as they change (and then change again) is unsustainable. Handling all of the details around onboarding, classifying, and paying workers correctly requires a specific, highly-specialized skill set. Whether you hire a payroll service or build a team to do the job, they need to be fully in position to walk the legal line.
Benefits of Hiring an Employer of Record (EOR)
1. They Diffuse Legal Landmines
Contractor/freelancer payment and compliance regulations are ever-changing. An EOR allows you to hedge your bets on the legal front by mitigating compliance risks. They handle worker classification issues and track benefits eligibility and changes in minimum wage or sick leave policies. They can educate you on best practices and can serve as a sounding board for questions.
2. They handle payroll.
Compliance and payroll are some of the most important aspects of business to get right. Having those issues handled correctly keeps you off the radar with governmental agencies and keeps your workers happy, too. An EOR with online management for employees and managers, fast payment, automated overtime tracking/benefits eligibility ensure is an especially valuable partner.
3. They adapt to changes on your behalf.
The most effective teams have checks and blanches in place to stay on top of payroll regulations and legal changes as they happen. They take the necessary steps to adjust policies and navigate the increasingly-complicated waters of payroll services. Their job is to make sure you’re following all regulations, rules, and federal and state laws. Whether you hire a partner for it or not, somebody on your team needs to be fully-versed in these issues.
The Bottom Line
Labor laws and fair pay standard practices constantly change. Worker classification issues are top-of-mind topics for the government, employers, and employees alike. Pick an EOR that is in position to stay ahead of the curve so you never even have to think about payroll services and compliance. If you’re ready to make compliance and payroll the easiest part of your day, contact us anytime.