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.