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What is an Employer of Record (EOR)?
An Employer of Record, or EOR, allows a company to hire employees in another country or states without setting up a legal entity. The Employer of Record (EOR) is a company that legally employs a workers on behalf of another business, handling payroll, taxes, benefits, and compliance, while the client company manages the employee’s day-to-day work and responsibilities.

Calendly

30 Minute Meeting - Tony Birdwell

Your company still:
Chooses the candidate
You maintain full control over who joins your team
Manages their day-to-day work
Direct oversight of tasks and responsibilities
Sets compensation and expectations
You determine salary, benefits, and performance goals
The EOR simply handles the legal and administrative side of employment
The EOR simply handles the legal and administrative side of employment, including:
  • Employment contracts
  • Payroll and tax withholding
  • Benefits
  • Labor law compliance
  • Terminations and severance
  • Local employment regulations
Two perspectives
From the employee's perspective: they are legally employed by the EOR.
From your perspective: they work as part of your team like any other employee.
The one-sentence version:
An EOR lets you hire someone in another country without opening a company there, while staying fully compliant with local labor and tax laws.
Real-world example:
Your company is based in the U.S. and wants to hire a full-time employee in Colombia.
Traditionally, that means entity setup, bank accounts, legal counsel, local payroll, and months of work.
With an EOR:
01
You hire the person you want
02
The EOR employs them locally
03
Payroll, taxes, benefits, and compliance are handled
04
You manage their work day to day

Result: a compliant hire in weeks, not months.
Why companies use EOR:
  • Hire internationally faster
  • Test new markets
  • Avoid entity setup
  • Reduce legal and tax risk
  • Stay compliant with complex labor laws
The employee is yours in every practical sense.
The EOR just handles the legal employer role.