As an after-shock of the Covid19 pandemic, remote work opportunities have surged by an impressive 135%. With more companies than ever before hiring globally, the demand for localized, specialized payroll and compliance service providers has risen in tandem.
What is an EOR?
An Employer of Record (EOR) is a third-party company that assumes the legal responsibility of being the official employer for workers.
In the case of companies hiring globally, an EOR provides local services for processing payroll, withholding taxes, and ensuring total legal compliance in the regions in which contractors are based.
When an organization engages an EOR, the EOR steps into the role of employer for tax purposes, thus becoming the legal employer while the client company maintains control over the day-to-day work, and management of contractors and employees.
For companies that want to expand their hiring practices across various countries and regions but do not want to establish legal entities in each one, an EOR proves highly beneficial. It allows organizations to leverage the EOR’s pre-existing infrastructure and expertise to ensure compliance with local employment laws and regulations. As such, payroll administration is simplified and the HR burden on the client company is reduced.
In the wake of a booming remote, global workforce, the EOR industry is projected to experience a compound annual growth rate of 6.9%.
The Advantages of Using an EOR
When organizations are expanding into new markets or seeking to streamline their workforce management, an EOR is a valuable resource for supporting operational performance.
Onboarding tasks such as payroll and tax compliance with an EOR enables organizations to bypass the costly fees associated with setting up legal entities in foreign jurisdictions. Businesses can thus optimize for cost savings while expediting hiring, onboarding and compliance, following all local regulations.
Through an EOR responsibilities related to payroll, benefits and employment-related taxes are managed. In turn, organizations free up time and resources to pivot their focus towards core operations and strategic initiatives.
Partnering with an EOR provides an added layer of flexibility for scaling and downsizing when necessary. Owing to the fact that separate legal entities are not set up across regions, companies can onboard contractors and terminate contracts on an as-needed basis.
Engaging an EOR for Crypto Payroll
When issuing payment to an international workforce in crypto, working with an EOR takes on a new level of importance.
On a global scale, the average cost of a single violation of compliance is $14.82 million. With crypto’s regulation in a constant state of evolution, issuing global crypto payroll while abiding by all local compliance laws can be an insurmountable and costly challenge.
Through employing the help of an EOR, organizations can not only ensure that their crypto payroll meets all local regulations but that it remains up-to-date with an ever-changing legal landscape.
2022 saw massive changes in crypto policies across the globe. Previously, cryptocurrencies were considered unregulated assets subject to minimal or no taxation in countries such as Portugal, Brazil, Ukraine, and beyond. However, with surging global usage rates, governments have been implementing more stringent regulatory measures whose violation results in harsh penalties.
For future-facing companies adopting innovative crypto payment systems, an EOR allows for the streamlining of payroll while avoiding the fallout of non-compliance.
Global Payroll and Compliance with Rise
Rise is a comprehensive payroll and compliance solution built to help companies efficiently scale their operations worldwide. By making Rise your EOR for international fiat and crypto payroll and compliance, access to borderless hiring is unlocked.
Instead of dealing with the burden of setting up operations in each region where your organization employs contractors, which incurs substantial costs and demands additional managerial efforts, Rise offers a solution with localized services available across 190 countries.
Alongside Rise’s EOR services for international contractor management, flexible routing between fiat and crypto creates opportunities for accessing competitive hiring.
As demand for options to receive wages in crypto steadily rises, organizations can attract top talent while empowering contractors with enhanced financial freedom. With Rise, contractors can withdraw their paychecks in their preferred currency while organizations can fund payroll with treasuries in crypto or fiat, from a digital wallet or a traditional bank account.
Employ Rise as your EOR today to unlock next-level compliance and payroll services. Schedule a demo to learn more about how Rise can seamlessly scale your remote, global teams.