An Employer of Record (EOR) is a third-party company that legally employs workers on a client's behalf in jurisdictions where the client has no entity. The EOR handles payroll, benefits administration, tax withholding, employment compliance, and statutory requirements while the client retains day-to-day management of the worker's tasks and projects. EORs are used most often by startups hiring international talent without forming entities in each country, and it is the legal mechanism that lets a Delaware C-corp hire engineers in Brazil, Germany, India, and Australia without forming subsidiaries in any of those countries.
The mechanic: the client company identifies and selects the candidate; the EOR signs the employment co...