Compliance

What Is Employer of Record (EOR)?

Quick Definition

A third-party organization that handles payroll, taxes, and compliance on behalf of the hiring business. Useful when you need workers in new markets without setting up a local entity.

What Is an Employer of Record?

An employer of record (EOR) is a company that takes on the legal responsibilities of employing workers on behalf of another business. The EOR handles payroll processing, tax withholding and reporting, benefits administration, compliance management.

For businesses that need high-volume hourly staffing rather than employment administration, the math often favors a platform approach. GigSmart's G-Flex model connects businesses directly with qualified workers — no EOR markup, no agency fees, just transparent pricing for the shifts you need filled.

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This glossary is for informational purposes only and does not constitute legal, tax, financial, or compliance advice. Employment classifications, labor regulations, and workforce terminology vary by jurisdiction. Consult qualified professionals for guidance specific to your situation.