Hiring someone in another country means one of two things: opening a legal entity there, or using an employer of record. For most companies, the second is faster and far cheaper. But employer of record services vary widely in price, country coverage, and how they treat the worker who actually gets paid.
Ontop is a global payroll and payments platform that lets companies hire and pay teams in 150+ countries. See how Ontop handles global hiring and payments.
Key takeaways
- An employer of record legally employs your worker in their country and handles payroll, taxes, and compliance, so you do not need a local entity.
- The real cost is not just the monthly fee: watch the FX spread on payouts and one-time setup charges.
- Country coverage matters more than long feature lists. The right provider is the one that actually covers where your people live.
- The worker experience is part of the deal: delayed payouts and forced currency conversions are red flags.
- Ontop combines global hiring, payroll, and payments, and pays workers into a Global Account they control.
What are employer of record services?
Employer of record services are companies that legally employ your workers in their own country on your behalf. They run local payroll, withhold taxes, and keep the employment compliant, while you manage the day-to-day work. It lets you hire globally without opening an entity in each country.
How much do employer of record services cost?
Most providers charge a flat monthly fee per worker, but the sticker price is only part of it. The costs that add up quietly are the FX spread on cross-border payouts, setup or deposit fees, and off-boarding charges. Compare the total, not the headline. You can see Ontop's costs on the pricing page.
How do you choose an employer of record?
Choose on four things: real coverage in the countries you hire in, transparent total cost, compliance track record, and how well it treats the worker. A provider that pays late or converts currency against your worker creates problems you will hear about. Ontop takes the worker's side of that transaction by default.
Frequently asked questions
What is an employer of record?
A company that legally employs your worker in their country, handling payroll, taxes, and compliance, so you can hire without a local entity.
When should a company use an employer of record?
When you want to hire in a country where you do not have a legal entity, and setting one up would be slow or expensive.
How is an EOR different from payroll software?
Payroll software helps you run payroll for entities you already have. An employer of record is the legal employer itself in that country.
Closing thoughts
The right employer of record is the one that covers your countries, prices honestly, and pays your people properly. If you are hiring globally, that last part is not a detail. Book a demo.
