Employer of Record (EOR) is a term used to describe a company or organization that is responsible for all employment-related tasks and obligations for a group of workers. This includes but is not limited to payroll processing, tax withholding, benefits administration, and compliance with labor laws and regulations. The EOR acts as the legal employer for these workers, even though they may be working for a different company or organization. This arrangement is often used in situations where a company needs to hire workers quickly or for short-term projects, and does not want to take on the full responsibility of being an employer. The EOR assumes all legal and financial liabilities associated with employment, allowing the client company to focus on their core business. EORs are also known as professional employer organizations (PEOs) or workforce management companies.
