What is Employer of Record (EOR)?
Corporate Secretary Service Indonesia – Companies embrace a global growth mindset to achieve next-level success as the international labor market grows. However, hiring, paying, and managing global workers compliantly can be challenging. So, let’s explore the benefits of work together with a global Employer of Record service like PortCorp.
What is an EOR?
An EOR is a solution that legally hires workers on behalf of another company, enabling global hiring without forming a legal entity. An international EOR is a lawful employer of individuals that a company wants to hire in a new country like Indonesia when it does not have an entity in that country and can’t legally hire those individuals, regardless of their entity status. As the legal employer, EOR manages all aspects of employment, including payroll, taxes, benefits, human resources duties, and compliance. As the EOR is responsible for ensuring compliance with local labor and employment laws, the EOR must stay abreast of local legal requirements regarding employment.
An EOR is not the same as a Professional Employer Organization (PEP), which operates on a co-op model and works with companies that already have their own entity in their country. PEOs do not take on all of a company’s responsibilities and generally only assist with certain HR functions, such as payroll or benefits administration. EORs also differ from staffing agencies in that staffing agencies mainly focus on recruiting and sourcing talent rather than recruiting. While many EORs are international, some EORs can also serve on a more regional level.
With an EOR, you can:
Start recruiting globally starting within minutes.
With a quality EOR, you can hire the best person for the job anywhere globally – regardless of entity status. Everything from automated contract generation to global payroll setup and management reduces risk and allows your business to start operations in your target country in minutes, not months.
Simplify global payroll processing.
Are you managing team members in multiple countries? That’s not a problem. EOR legally hires workers and places them on the appropriate payroll locally, eliminating the need to set up subsidiaries internationally. Team members are paid on time, in their local currency, and accordance with local payroll and tax requirements.
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More than ever, implementing a compliant and accurate payroll system is seen as a critical driver of successful business operations. According to the Global Talent Trends 2024, enhancing or modernizing pay practices is a top focus for 41% of HR professionals in this year. In addition to providing appropriate and accurate payroll, G-P △’s Global Growth Platform offers equity-based compensation in supported countries as well as clear and straightforward invoicing with our premium EOR package. Knowing that payroll reporting and withholding taxes comply with local labor laws, you can enjoy peace of mind.
Automate contract generation.
Strong EOR partners generate locally compliant employment contracts. For example, G-P’s industry-leading Global Growth Platform allows companies to develop customized compliance contracts for each individual with just a few clicks through its fully automated Employment Contract Generator.
Ensure appropriate tax deferral.
Legal liabilities such as employment-related taxes can be a big problem for many companies. EOR takes care of this complexity, including performing the appropriate withholding and filing of taxes related to employed individuals, including handling social security, unemployment, and income tax.
Streamline benefits enrollment for your team.
EOR handles benefits administration, including contributions to private health insurance and specific government programs such as social security and workers’ compensation. The best EOR providers support companies in offering competitive benefits packages that align with country-specific labor laws and employee expectations. G-P makes it easier to enroll your team in your choice benefits plan in minutes.
The best EOR partners guide you every step of the way, with in-house legal and HR experts available to support and maintain clarity to help maintain compliance. Best of Note companies like G-P is backed by a team of experienced HR and legal experts who will cover all local labor compliance requirements so you can focus on the day-to-day work of your new team members.
Don’t worry, if you need Employer of Record (EOR) in Indonesia, Portcorp is here as a solution for your business. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!
