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What Is an Employer of Record? EOR Explained in 90 Seconds
An Employer of Record (EOR) legally employs international team members on your behalf and handles agreed employment contracts, payroll, taxes and benefits. You manage daily work, while the EOR supports local employment administration without requiring your own employing entity in the country.
We handle global payroll, compliance, and HR while you build your team.
Channel
RemotePeople
Format
Explainer
Duration
1 Minute 35 Seconds
Published
July 2026
About This Video
This short explainer answers a common global hiring question: what is an Employer of Record, and how can it help you employ someone where your company has no local entity? The EOR signs the employment contract and handles payroll, tax withholding and statutory benefits, while your company directs the employee’s daily work.
The video explains how responsibilities are divided between the client and EOR, and why this model can be useful when starting or expanding an international team.
What You'll See
- Who signs the employment contract, runs payroll and manages the employee’s daily work.
- How the EOR administers local employment requirements, tax withholding and statutory benefits.
- Why an existing EOR setup may support faster onboarding than creating a new employing entity, subject to country and right-to-work requirements.
Why It Matters for Global Hiring
An EOR may suit a first international hire, a small team or a new-market test. A local entity may become appropriate as commercial needs and headcount grow. Compare country-specific setup, employment, administration and closure costs over the expected period; there is no universal cost or employee threshold.
RemotePeople’s Employer of Record service supports hiring in 150+ countries, with fees from $199 per employee per month. The employing entity, coverage and exact terms are confirmed for each country. For more detail, see What Is an Employer of Record?.
Who Should Watch
Founders, HR leaders, and hiring managers who found the perfect candidate in a country where they have no entity — or anyone comparing an EOR against opening a subsidiary. If you’re new to global employment, start with these 90 seconds.
Hire in 150+ countries — compliantly, in days
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Frequently asked questions
How RemotePeople’s Employer of Record service supports international employment.
An Employer of Record (EOR) is an organization that legally employs a worker on another company’s behalf. The EOR signs the employment contract and administers payroll, employment taxes and statutory benefits, while the client manages daily work. RemotePeople provides this service in supported countries through its Employer of Record service.
The client selects the employee and agrees the role, salary and work arrangements. The EOR checks local requirements, prepares the employment contract and completes onboarding. The client funds employment costs and the service fee; the EOR processes payroll and employment administration. With RemotePeople, country and role requirements are confirmed before the employee starts.
An EOR becomes the worker’s contractual employer. A payroll provider calculates pay and handles agreed payroll tasks for a business that remains the employer. RemotePeople offers both models: EOR supports hiring without your own local employment entity, while payroll outsourcing supports employees hired through your existing entity. Outsourcing payroll alone does not automatically transfer employer obligations.
