EOR/AOR
Employer of Record (EOR)
Employer of Record (EOR)
An Employer of Record (EOR) serves as a strategic solution to navigate the complexities of hiring and managing temporary employees in a new market. Acting as a trusted intermediary, an EOR assumes the legal responsibilities of being an employer of theW-2 worker, handling tasks such as payroll processing, tax withholding, benefits administration, and compliance with US employment laws and regulations. Partnering with an EOR allows UK recruiters to streamline their expansion efforts, reducing administrative burdens, and mitigating risks associated with unfamiliar legal frameworks. The main benefit of utilising an EOR to employ W-2 workers, is that it avoids the necessity of a recruiter having to register in each state for employment purposes.
Agent of Record (AOR)
Agent of Record (AOR)
Similar to an Employer of Record (EOR), an AOR assumes legal responsibilities on behalf of the recruiter, handling tasks such as payroll processing, benefits administration, tax withholding, and regulatory compliance. However, unlike an EOR, an AOR does not employ W-2 workers; instead it acts as agent of record for the payment of independent contractors (corp to corps or 1099s). The AOR has no employment responsibilities but instead is responsible for paying the independent contractor and assisting in the classification process.
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