What Is an EOR, and Why Is It Important for US Expansion?
Working with an Employer of Record (EOR) like Alariss can be an excellent way to fuel your global business’ expansion into the US. It minimizes concerns about legal compliance and paperwork and ensures that you don’t have to create a legal entity in the US for hiring purposes.
An EOR is a middleman between you and your employee in the US. They are the legal employer of your employee, and they pay your employee and provide benefits on your behalf. The EOR takes care of all compliance issues related to hiring your employee. They make it easy for you to scale your business in the US without worrying about legal compliance.
An EOR makes sure that your employees are paid on time. They also take care of all HR operations.
The original employer still makes all employment decisions, such as pay, job duties, and when to terminate the relationship. But the EOR handles all of the logistics. They handle compliant payroll inside the US, comply with all local labor laws, and interface between the original employer and the US government as well as state and local governments.
There are a number of benefits to using an EOR to hire in the US. Most importantly, an EOR takes care of all legal and HR concerns so that you can focus on running your business, rather than dealing with the minutiae of laws and regulations related to hiring in the US.
There are a number of regulations that employers in the US must follow. Employers must file tax returns and pay taxes to the US and state governments and follow federal and state labor laws. In the US, under the Affordable Care Act, most employers are required to provide health insurance to full-time employees. In addition, all employers are required to pay taxes to make contributions to a variety of government-administered programs such as Social Security and Medicare as well as unemployment insurance. Payments must also be made on a timely and recurring basis. An EOR can take care of all of that.
Employers also must ensure that they’re classifying their workers in the right way, whether as full-time employees or as independent contractors. It is illegal to misclassify an employee as an independent contractor. Employers also must follow federal and state privacy laws and anti-discrimination laws. A variety of laws, including labor laws, differ across the 50 states. The US has a reputation for some of the most complicated employment laws in the world, coupled with a culture in which workers are empowered to unionize and to litigate. An EOR can ensure that you remain in compliance.
Employers in the US also need a variety of types of insurance, including employer’s liability insurance and workers’ compensation insurance, to ensure that they’re protected from unplanned costs or litigation. An EOR can advise you on the types of insurance that you should buy. They can also help you negotiate for better rates for insurance.
In short, an EOR can save you a lot of headaches and money by taking care of legal compliance for hiring in the US. You can continue to focus on business operations and growing your revenue, while we handle the details of how to hire in the US.
Alariss can match you with top US sales and business development talent to expand in the US and act as the EOR. Unlike other EOR platforms, Alariss also finds the right US talent for you to hire. If you’re interested, you can sign up for our portal today.