Employer of Record Services.
A contingent workforce company that provides Employer of Record services (EoR) places a client’s employees on that company’s payroll. The client will still drive the work agenda of the employees, and the employees are still considered workers for the client. However, the company providing the EoR services will be the employer of record company, and would be responsible for payroll, benefits, taxes, and a variety of other human resource and employment related compliance functions. The contingent workforce company essentially becomes the employees’ primary employer, but just on paper and for tax purposes.
In the United States, there is a vast number of businesses using companies like K-Factor to provide employer of record services to assist with payroll, benefits, and other human resource and employment regulatory needs. There are tremendous advantages for small, medium and large sized businesses that leverage EoR services, because these businesses can stay in compliance with a variety of rules, laws and regulations without having to incur the expense associated with keeping up to date with employment rules, laws and regulations.
Employer of Record Tasks Managed By K-Factor
A company that outsources to K-Factor’s Employer of Record services will no longer have to manage a number of human resource and other employment related tasks.
- Employee Onboarding for New Hires
- Tracking / Processing Entry of Time Sheets
- Processing and Funding of Payroll
- Deposits / Filings for Quarterly and Annual Taxes
- Handling / Processing of Unemployment
- Handling of Workers’ compensation
- Creating and Maintaining Employment Contracts
- Maintaining Certificate of Insurance
- Completing and Storing Forms I-9
- Issuing Forms W-2
- Complying with E-Verify
- Conducting Background Checks, Credit Reports and Drug Screenings
- Offering and Administering Benefits
- Documenting Employee Performance
- Terminating Employees
Employer of Record Services Benefits
There are many benefits that will result from working with K-Factor’s Employer of Record services, including but not limited to:
- Time savings: Companies utilize this model to save the expense associated with having to support back-office human resource services on their own
- Compliance: Companies that do not have specific expertise in human resources, tax and data compliance, and employee case documentation, can run into challenges when handling employment services on their own. K-Factor takes that burden on, allowing clients to avoid those burdens, financial penalties or other business sanctions, that come with being non-compliant
- Risk avoidance: As mentioned, the risk tends to fall (almost) entirely on the company providing employer of record services
The Employer of Record services model can be extremely effective for companies operating around the world. If your company is not based in the United States but you would like to operate subentities inside
the United States, your company would not have to establish additional business entities for the purpose of maintaining a workforce.