The EOR Handbook
A straightforward breakdown of how to employ remote workers in the Philippines legally, securely, and efficiently.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a company or organization that legally employs workers on behalf of another company, usually in situations where the employer wants to outsource human resources, payroll, tax compliance, and other legal responsibilities.
What are the Responsibilities of an EOR?
Payroll Processing
Guaranteeing employees are paid on time and in accordance with tax laws.
Tax Compliance
Managing employee tax withholdings, filings, and reporting.
Benefits Administration
Overseeing employee benefits like health insurance or retirement plans.
Employment Law Compliance
Ensuring the company complies with local labor laws and regulations, such as worker's compensation, vacation leave, maternity leave, etc.
Onboarding and Offboarding
Ensuring compliant hiring, termination, and employee records management.
Why is an EOR Needed?
An EOR is often used by companies that want to hire workers in different countries, provinces or states without having the need to set up a legal business entity in a specific area. For example, a company in the U.S. planning to hire employees in Europe will utilize an EOR to handle all the local legalities.
Who is the Legal Employer?
The worker typically performs the job duties for the client company, but the EOR is the official legal employer.
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