Employer of record
If you are running a business and you want to have the option to hire employees all over the world, without HR and payroll hassle then Employer of Record service might suit you. Setting up a legal entity in a country and employ staff in foreign country invites a lot of efforts and problems. Managing taxes, governmental costs, liabilities can be tricky for non local entity. That’s where the use of Employer of record (EOR) model comes in handy. Below you can read more about Employer of Record, we will also tell you why you should choose Swapp Agency as your Employer of Record (EOR) provider in Iceland.
What is the Employer of record?
Employer of Record or EOR is any third-party entity that will handle all the employment-related tasks on behalf of other businesses.
EOR will handle all the taxes, employers cost, and all the other things that are related to the employee. This is a powerful tool where your company can put more focus into magaging the actual project instead of HR, Payroll and other things.
It is much like hiring a company to do all the work, the only difference is that EOR is the complete all-in-one firm that you can use.
Let’s take an example to understand more. If you are from the US and you are looking to hire some people from Iceland to do a local project. It would take a lot of effort from your side to find the employees, hire them, and handle all the taxes and payments. That’s where you can find the employer of record in Iceland and give them the work. The employer of record in Iceland will do all the things for you. They will have a pool of candidates that will work for you. You will get the best talent from Iceland and you won’t even have to handle all the things.
This is the easiest way to hire employees worldwide.
The role of the employer of record in Iceland
EOR in Iceland or any other country will generally handle the following things. However, it purely depends on the firm if they handle more things.
- They are a registered entity that will handle all the tax, payments, and other things
- It meets with all the countries and will make sure that you are following all the rules while you are making the deal.
- They will handle all the notice periods, termination rules, and will also handle the payments and salary if you want.
- We can say that they act as a host country between the employee and the law.
- It maintains all the insurance and similar things
- They will arrange all the visa and work permit if you want them to work for you at your office. It will also handle and issue all the forms.
- It will help you offer admin benefits to you.
- This will help terminate all the employees
In simpler words, they will handle all the things for you. You just need to send them the requirements and they will do all they can to provide you the best staff. It works like a bridge between your country and the employees.
Why use EOR?
Now, you might be wondering why you should be using employer of record, right? Here are the benefits ou will get in using employer of record.
No local incorporation
The first benefit you will get is that you won’t need any local incorporation if you want to find some staff from other countries. They are your employees and the EOR will handle the legal things. Getting local incorporation is not only difficult but will involve many costs and it is a time-consuming process. You can use EOR till your company gets the local incorporation or you can just say goodbye to the local incorporation and keep using the EOR.
Laws and rules
You don’t need to worry about the laws and the rules of the country. They will handle the visa and abide by the local rules. There are certain regulations that you need to follow as a business, the EOR that you decide to go with will guide you in everything.
Payments and payroll
It is hard to make the payment to the employees. If you want to run a payroll, most of the countries will require a legal company. Also, many countries won’t allow remote payroll. Therefore, you will need a locally registered company. If you don’t have one, you can go with the EOR. If you want to give the payroll to someone in Iceland, the employer of record in Iceland will handle it for you. Therefore, you don’t need to worry about anything.
Effort and time
The last benefit is not technical. As the EOR entity will do most of the work for you and handle everything for you, you can focus on your business. They know about everything and they are also working with many companies. So, you can trust them and they will handle all the things for you.
Finding the EOR in Iceland
Swapp Agency works as an EOR in Iceland. Started a couple of years back, Swapp Agency has helped many companies by giving them the best employees in Iceland. In the same way, it has helped many job seekers and individuals to land a job. They work with the companies and guide the companies after hearing their requirements.
The service is great and you will surely get the best employees that will work hard for your companies. Generally, you need to see three main things in EOR. One is, of course, the legal details. The second and third one is the employee base and the company’s communication.
In the case of Swapp Agency, you will get all three things. You can contact the agency today and see how they can help you with the entire process.