Several cities in the United States–from Topeka to The Shoals, Alabama– are offering incentives to attract new residents–particularly those who can work remotely. These programs often have specific eligibility requirements, such as income thresholds and employment conditions. If your workers are eligible to work remotely, they may want to take advantage of these incentives. There is one pivotal action businesses can take to retain their best talent, while making it easy for their employees to relocate.
One Small Change With a BIG Impact
As remote work enables employees to relocate freely and cities hope to attract these workers, businesses must adapt to keep their best talent. Your employees may want to take advantage of relocation incentives, but even for remote workers, it isn’t always as simple as packing up a laptop and adjusting to a new time zone. The employer must have the infrastructure in place to legally employ them and track compliance requirements in those locations. This task can be daunting for organizations without robust payroll infrastructure as local employment laws, tax codes, overtime regulations, and sick leave guidelines vary from state to state. Organizations that have these details under control in their region may still lack what they need to manage payroll and compliance issues efficiently in other locations. This puts them at increased risk of non-compliance and the associated penalties can be devastating.
An Employer of Record (EOR) offers a streamlined solution to these challenges. As the legal employer on behalf of another company, an EOR handles payroll-related tasks and compliance concerns. This arrangement allows companies to adhere to regional employment laws without setting up new infrastructure. An EOR has the necessary infrastructure for payroll processing and compliance built into its systems. This allows businesses to focus on their core operations without the burden of administrative complexities.
The Bottom Line
The expansion of the remote economy presents significant payroll management challenges for organizations lacking the infrastructure to navigate diverse regional laws in all of the locations their employees wish to work. An Employer of Record (EOR) addresses these issues by serving as the legal employer, ensuring adherence to local employment regulations such as overtime and sick leave laws. By partnering with an EOR, companies can efficiently manage payroll compliance and focus on their primary business activities. Schedule a free consultation to discuss how engaging an EOR might benefit your company.
