Are you considering using an employer of record to manage your contingent staffing requirements? There are many benefits to using an employer of record for your business, so here are some things to consider.
What is an Employer of Record?
An employer of record is a company that acts as the official employer for an employee, handling all payroll and employment-related matters. This includes hiring, terminating, providing benefits, and other HR tasks. The employer of record acts as a middleman between the employee and their actual employer. They are usually used by companies who want to outsource the HR, compliance, and legal aspects of employing some of their contingent workforces.
What are the Benefits of Using an Employer of Record?
Using an employer of record can be a great way to expand your workforce simply. With the right partner, you can focus on what you do best and leave the employment details to them. Let’s break down why you should use an employer of record like Maslow Media.
1. An employer of record can help you navigate the complex world of employment laws.
This is one of the most significant benefits of using an employer of record. There are many Federal, State, and Local employment laws to comply with, and it can be challenging to keep up with them. An employer of record takes on this responsibility and can provide your organization with compliance and legal protection when employing your contingent workforce. In addition to tax laws, an Employer of Record assists you in correctly classifying your contingent workforce.
2. An employer of record can help you hire talent anywhere in the country
As companies leverage a more remote workforce strategy, an employer of record can help with onboarding and offboarding your contingent labor. Leveraging an EOR eliminates the requirement for your company to establish state withholding and unemployment tax accounts for your contingent workforce working in a state not already active for your business. This eliminates the need for quarterly and year-end payroll tax filings for individuals processed through an EOR.
3. An employer of record can help you save money on payroll and benefits administration.
Another benefit of using an employer of record is that they can help you save money on payroll and benefits costs. The administration of payroll and benefits can be time-consuming. By outsourcing these requirements, your organization can save money while freeing up more time to focus on the company’s goals and objectives.
What are the Responsibilities of an Employer of Record?
The employer of record has many responsibilities when working with a business. This ensures that every aspect of the company runs smoothly. Here are some duties that an employer of record has…
- Ensuring compliance with local labor laws
- Onboarding, offboarding, and managing employee relationships by applicable regulations
- Processing payroll and providing benefits to employees
- Handling all paperwork related to taxes, workers’ compensation, and other employment-related matters
- Maintaining accurate records of all employee data and activities
- Ensuring that all employees are paid on time with correct wages and deductions
When Should a Business Use an Employer of Record?
When it comes to managing payroll, human resources, and benefits, outsourcing the process to an employer of record can be highly beneficial for businesses. By choosing to work with an employer of record, companies can save time and money while enjoying the financial benefits of reduced overhead costs. Below are some indicators a business might need an employer of record…
- When a company wants to ensure accurate recordkeeping and reporting of employee data and activities
- When a company is unsure of the state and local labor laws and regulations in states, it is seeking to employ its contingent workforce and needs assistance staying compliant
- When a business needs to save time and money by streamlining its payroll process
- When a company wishes to reduce overhead costs related to managing HR tasks internally
What are Some Other Solutions for an Employer of Record?
Some alternative solutions to an employer of record include…
- Hiring a consultant or independent contractor to manage all HR tasks, including payroll and employment law matters
- Establishing a subsidiary company in another state to hire employees and handle related HR tasks
- Hiring an internal team of experts to manage the company’s HR tasks and employment law issues
- Using an integrated HR software solution that simplifies payroll processing and other related tasks
- Working with lawyers specializing in labor law to ensure the company complies with all applicable regulations.
These other solutions can be costly to an organization and are great reasons to consider using an employer of record. They can help you save money on payroll and benefits costs, manage employee records, stay compliant with employment laws, reduce liability risk, focus on your business, and save time. If you’re looking for a way to simplify your human resources tasks, Maslow Media Group may be the perfect solution for you! Contact Maslow Media Group today!