Employers of Record are the legal entity from which an employee’s paycheck will be drawn. This means that if your company is an Employer of Record, then all your employees will be paid by their Employer of Record and not directly by you – this allows for easier tracking of income and contributions. In this article, we’ll outline some reasons why you might want to create an Employer of Record, what the benefits are, and how to proceed with the process.
What Is an Employer Of Record?
An employer of record is the entity that is legally responsible for ensuring that employees are properly registered and licensed with the state workforce agency. This might be a company that hires employees directly or an organization that acts as an agent for another company that does so.
Why Do You Need One?
An employer of record is the entity that is legally responsible for employing employees in a certain jurisdiction. This can be an individual, a company, or even a partnership. Employers of record are typically required by law to keep track of employee hours and other payroll information. They are also typically responsible for issuing tax forms and other documentation related to employee benefits. Having an employer of record can make it easier for a business to comply with various regulations and requirements.
If you want more information about the employer of record, please contact BIPO.