Businesses have a number of avenues to explore to help improve productivity, efficiency, and overall practices. One such option is an employer of record for payroll. When you employ one tailored to meet yourbusinesses’ needs, you’ll discover more time on your hands to build brand, improve strategy, and expand business.
What’s An EOR?
Short for“employer of record,” an EOR is a company that acts as a co-employer on behalf of your business. Think of them as a middleman who manages your employees and all of the administrative duties accompanied with them.
Their partnership helps in a number of ways. As they are already a registered business, they can get right to the hiring and operations aspects of the companies who employ their services. As a business owner partnering with one, you still retain full control, but they take care of your bureaucratic tasks, from obtaining a business registration number to establishing insurance and banking infrastructure.
An employer of record has the means and resources to make payroll easy for you. When it comes to outsourcing thisdepartment, they have the time, knowledge, and people to manage these tasks and relieve you of these responsibilities.
What Payroll Matters Do They Handle?
All of them! As they act as the employer for your employees, an employer of record for payroll handlesevery payroll task, leaving you more time to focus on your business, without also worrying aboutmiscalculating pay and taxes.
Their expertise in payroll means they fully understand how to classify employees, calculate wages and other non-salary monies correctly, and ensure staff is paid on time. They know everything about pay: wages in applicable territories, statutory and holiday pay, overtime, etc.
When it comes time to do those pesky tax deductions, they know how to calculate the right source deductions and when to file remittance reports. An employer of record for payroll manages it all, freeing up time in-house to work on company growth and strategy. You won’t have to worry about in-house staff lacking the right skills, or dedicating team members to these tasks, when it’s outsourced to experts.
As human resources is closely tied to the payroll department, an EOR is an able-bodied partner here. They can negotiate better insurance deals using their group-buying power, offering your employees better benefit package rates in medical, dental, and optical care. They handle the paperwork involved with hiring, such as drafting employment agreements, so you can hire new employees faster and with less hassle.
How Can They Make Payroll Efficient?
An employer of record for payroll is guaranteed to have the latest payroll software, and continually update it, improving your overall payroll process. They’re set with the right tax tables, technology, and reporting tools, so all you need to do is provide the correct employee pay information.
With an employer of record for payroll, you can rest easy knowing every i is dotted and every tcrossed. Federal, provincial–even municipallaws, are regularly monitored to ensure the business is in line with current standards, and new ones are implemented upon issuing. When you miss a deadline or don’t follow the correct legislation, your business could face penaltiesand fines from the government. An EOR’s job is to stay on top of regulations, keeping your business in good standing with health and safety, labour, and employment standards.
With professionals handling the admin duties, you’ll have peace of mind knowing everything is properly managed, giving you more time todevelop your company. With an EORproviding a trifecta of services: legal, payroll, and human resources are rolled into one,you’ve eliminated the use of staff for this in-house. An employer of record for payroll opens up spacein the budget,and addstime to the clock for businesses to achieve success.