Are you planning to expand your business to the US market or are you looking to hire professionals in the USA but find yourself without a legal entity there? American Employer of Record provides the ideal solution for your business.

Whether it’s entering the market for the first time, or responding to employees’ requests for remote work from the USA, our Employer of Record services are perfectly suited to help you expand your team and pursue opportunities with ease.

Understanding local laws and regulations when hiring American professionals is crucial. In this article, we’ll outline what an Employer of Record (EOR) can do for you, explain how it simplifies cross-border collaborations, and compare this approach to other global hiring strategies.

What is an Employer of Record?

An Employer of Record acts as a bridge between your company and your employees. This provider is responsible for handling payroll, taxes, and insurance, while you maintain your usual work relationships. Clients pay the EOR for these services, which includes managing employment costs.

Companies choose Employer of Record services for various reasons. For instance, startups with limited HR resources or payroll teams often completely outsource these areas. Companies expanding into new markets might use an EOR to stay compliant with local laws without needing to establish a new local entity themselves.

The Employer, Employee, and EOR collaboration explained

Imagine a triangle where you are one point, the Employer of Record is another, and your employee is the third. While you maintain your usual working relationship with your employee(s), the EOR takes care of all the legal and administrative duties. This streamlined structure helps you navigate new markets, support your team, and tackle international challenges with ease.

Main advantages of using an Employer of Record

Working with an Employer of Record in the USA offers several advantages. Below, we outline four key benefits that can streamline your company’s international expansion efforts.

1. Legal compliance in employment abroad: Using an EOR ensures you operate within all local employment laws and regulations.

2. Simplified payroll and benefits: The Employer of Record handles all aspects of employee compensation and benefits in the USA.

3. Tax optimisation expertise: EOR experts can guide your company on qualifying for and maximizing tax benefits.

4. Visa and work permit handling: An Employer of Record facilitates the often complex visa and work permit processes.

Comparing EOR with other approaches for global expansion

Expanding your team internationally can be exciting, but navigating regulations and legalities can feel overwhelming.  Here’s why an Employer of Record in the USA can be your go-to solution compared to traditional methods:

Establishing a new entity vs. using an EOR:

Using an Employer of Record is smart and efficient, eliminating the high costs and lengthy processes associated with setting up a new business entity. An EOR offers quick, scalable, and transparent solutions at a fixed cost.

Staffing agencies vs. EOR:

While staffing agencies focus on recruitment, an EOR takes over after the hire. An EOR handles payroll, administration, and compliance, highlighting its specialized role in ensuring a smooth overseas employment experience.

Freelancing vs. EOR:

Unlike freelancing, which offers high flexibility but less security, an EOR provides stability with fixed contracts and manages compliance and tax benefits, making it an excellent choice for managing international relocations and maintaining employment commitments.

Choose American Employer of Record for seamless global hiring

American Employer of Record is here to facilitate seamless collaboration between your business and professionals in the USA. We support you through every step of expanding your team globally, ensuring a straightforward hiring process. Contact us if you have any questions.

Begin your journey now, and get your team up and running in the USA in no time. Yes, we can!