Employer of Record Services in Iceland

One positive outcome of recent times is the realisation that as an employer you are no longer limited to a pool of potential employees. Gone are the days when the catchment area of your employees was determined by the geographical location of your company.

You can now search the world for the best employees, ensuring that you attract the best possible people to your organisation or project. This new era of technology-enabled remote working that we are experiencing has created golden opportunities for employers, but it is not without its challenges.

Operating as a company in one country and employing staff in another invites many legalities, lots of effort and sometimes even problems. Managing taxes, governmental costs, liabilities, and other bureaucratic processes can be tricky enough for local entities, let alone foreign businesses looking to strengthen their workforce.

If you run a business and want the ability to hire employees around the world without having to worry about HR administration and payroll, then an Employer of Record in Iceland (EOR) service could be for you.

What is an Employer of Record Service? Why should you use one? How will it make your life easier? Find out more about this model below and why you should choose Swapp Agency as your Employer of Record (EOR) in Iceland.

What is the Employer of Record?

In simple terms, an Employer of Record (EOR) is a third party that performs all employment-related tasks on behalf of another company. An EOR takes care of all taxes, employer costs and all other matters relating to the employee.

This is attractive to employers because this powerful tool allows your company to focus more on managing a project instead of spending time building an employee infrastructure.

It’s like hiring other companies to take care of these details for you. Payroll, HR, onboarding can all be outsourced in a situation like this; the main difference is that an EOR is the complete all-in-one firm to facilitate this.

Let us say you work for a company based in the US and want to hire some people from Iceland for a local project. Everyone knows how time-consuming it can be to hire staff in your own country; imagine how much more time-consuming it will be on an international level.

First, you have to figure out how to find the employees, hire them, deal with the tax system (which can be so complicated in Iceland that even the tax authority doesn’t know how it works) and a myriad of other tasks before you can even start the project.

In this case, you could utilise the services of an EOR who can take on this task for you. An Employer of Record will source the employees from their candidate pool and take care of taxes, payments and HR. Your project will be able to start much faster than if you had to take care of these things yourself.

You get the best talent available in Iceland without having to lift a finger.

This is the easiest way to hire employees worldwide.

What is the Role of the Employer of Record in Iceland?

An EOR in Iceland or any other country will generally handle the following things; however, the specifics can vary depending on the firm.

• They are a registered entity that will handle all taxes, payments, and other financial elements regarding employees.
• They will meet with representatives from all the countries involved with the project and ensure you follow each country’s legal specifications when making your deals.
• They will handle all the notice periods, termination rules and can also address the payments and salary if you desire.
• They can say that they act as a host country between the employee and the law.
• They maintain all insurances and permits necessary for your project. 
• They will arrange all visa and work permit requirements if you need the employee to relocate to your office. They will also handle and issue all official forms.
• They will help you offer administrative benefits.
• They will assist with all employee terminations.

To put it simply, an EOR will handle all employee-related affairs for you. All you need to do is send them your requirements, and they will source you the best staff. An Employer of Record works like a bridge between your company, your base country and the employees you are searching for.

Why Should You Use an Employer of Record?

There are many benefits to utilising the services of an EOR to meet your staffing needs. To break them down, it’s easier to group them into four main points.

No Local Incorporation

Even if you have the most enthusiastic and innovative team member in charge of recruitment, it can be virtually impossible to achieve results if you don’t have a local office.

Achieving this can be time-consuming, costly and sometimes even difficult. It is also not always necessary or cost effective for a company to set up a local company for a project.

Using an EOR can eliminate the need for local incorporation. The employees are still your employees, you just don’t have to worry about the legal aspects.

Of course, if your company is looking to incorporate locally, you can still use an EOR until your company has completed the process.

Laws and Rules

Every country has specific laws companies must follow when operating. Navigating local rules and regulations can become an overwhelming headache when all you want is access to a country’s available talent.

An Employer of Record is familiar with all legal requirements for employment at all times. Regulators are constantly changing the guidelines for employers and it is important that organisations are aware of these at all times.

Utilising an EOR ensures that all your actions are completely legal.

Payments and Payroll

This is one of the most important elements of any business. The last thing a company wants is the slightest disruption to the payroll cycle. As an international organization, it can sometimes be a challenge to set up a payroll process.

In many countries, a company must adopt a local legal form in order to initiate payments. In some countries, remote billing is not allowed at all.

If you are unable to register as a company in the country you source your employees from, an EOR is the perfect solution. They can take over all elements of payroll in full or just smaller aspects of it.

Time and Effort

Time is often the most crucial element to any project or business transaction. When you have decided that you would like to utilise a more global approach to procure staff, the last thing you want is for the process to be time-consuming and resource-draining.

An EOR is the surest way you can get you from your initial decision to hire in a foreign market to the completion of a project or the reaching of a business goal with the least time and effort required. 

They know all the elements involved in getting you your employees so you can get the results you’re after.

How to Find an Employer of Record in Iceland

At the risk of sounding like we’re tooting our own horn, you’ve come to the right place. 

Swapp Agency is an Employer of Record in Iceland. Swapp Agency was founded a few years ago and has since helped numerous companies to find the best employees Iceland has to offer.

In the same way, Swapp has also helped many job seekers and individuals to find great jobs. We work with the companies to understand their specific needs for the type of business or project.

Swapp Agency was founded in Iceland and understands the complete workings of the local laws and labour requirements. 

When it comes to a successful EOR, you need three things; the legal details, the employee base and excellent company communication. 

When you hire Swapp Agency as your EOR in Iceland, you have all three points covered and receive an impeccable service that is second to none. We know the Icelandic labour market and we know how to get the best for you.

Conclusion

There was a time when embarking on an overseas project was an endeavour for which only a handful of companies had the capital, time and energy. Today, thanks to the interconnected world we live in and the innovation of things like Employers of Record, working internationally and recruiting employees abroad has become much easier.

If you would like to know more about Employer of Record in Iceland or find out what Swapp Agency can do for you. Send us a message.