Anyone else have a whole folder dedicated to CYB? How about a whole company dedicated to doing that on your behalf? That’s basically what an Employer of Record (EOR) is.
Clients usually come to us with three main CYB dreams for payroll
- Keep workers happy with on-time, accurate payroll.
- Keep the government happy with accurate worker classification and compliant practices.
- Keep our lawyers happy knowing numbers 1 and 2 are happening seamlessly and consistently.
Within those dreams lie many other goals
- To be able to hire quickly without changing headcount
- To be able to hire freelancers for special projects
- To hand off the legal risks of payroll and compliance to someone with the tools to get the job done right
- To be able to onboard quickly
- To be able to do business in multiple states without having to know all the rules of each of them
In order to accomplish all of these goals, companies without a highly specialized internal team (nearly everyone except the really big companies) outsources payroll with either an Employer of Record (EOR) or a Professional Employer Organization (PEO).
What does an EOR do?
An EOR handles payroll and takes on the paperwork and associated legal risks of employing people. It also allows businesses to add workers without changing their headcount. While an employee performs work for your business, the EOR serves as an employer for tax purposes and handles all personnel functions, including payroll processing, taxes, contracts, benefits, employment termination, background checks, worker performance issues, Certificates of Insurance, workers’ compensation, data security, and more.
What does a PEO do?
A PEO partners with a business as a co-employer to provide HR services and allows a company to outsource some of the HR load. The business still holds all related liabilities and responsibilities and is also still required to carry its own insurance. PEOs are a good option for companies that need to outsource some services without handing off legal liabilities.
We are in the business of protecting your business.
Payroll is very complex and is one of the riskiest aspects of doing business as a highly-specialized process of doing payroll in a timely, secure and compliant manner. Payroll is also really easy to mess up. Errors are not just inconvenient and embarrassing, they are sometimes also incredibly costly due to IRS fines and other costs associated with righting a wrong.
Outsourcing payroll means outsourcing risk and makes business sense to most organizations and keeps the company in good standing with the people on the front lines as well as government agencies.
Ready to CYB with an EOR? Well, here we are !
The post What Employer of Record (EOR) Means And How it Can Cover Your Butt (CYB) appeared first on PayReel .