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When payroll and contractor models aren't a good fit. Introducing Employer of record



The Payroll Model and the Contractor Model are two of the most common ways for organizations to engage with their employees or contractors. However, there are certain situations where these models may not be the best fit for a particular organization or project.

One of the main disadvantages of the Payroll Model is the cost and administrative burden associated with it. Employers are responsible for paying for all employment-related costs, including payroll taxes, benefits, and insurance. They also have to follow strict labor laws and regulations, which can be time-consuming and complex to manage. The Contractor Model, on the other hand, offers greater flexibility, but it also has its own set of challenges. Independent contractors are not entitled to the same benefits and protections as employees, and there is a risk that they may be classified as employees by the government, which could result in penalties and back taxes owed.

Enter the Employer of Record (EOR) Model, a new solution that addresses the limitations of the Payroll and Contractor Models. The EOR Model provides the best of both worlds, combining the flexibility and cost-effectiveness of the Contractor Model with the security and benefits of the Payroll Model.

Under the EOR Model, a third-party organization acts as the employer of record for the employees or contractors. The third-party organization is responsible for all employment-related costs and responsibilities, including payroll taxes, benefits, and insurance. The employees or contractors receive the same benefits and protections as employees, while the organization they work for benefits from the reduced costs and administrative burden. In conclusion, the Payroll and Contractor Models are not always the best fit for every organization or project. The Employer of Record Model offers a new solution that provides the benefits of both models, offering organizations a flexible and cost-effective way to engage with their workforce while relieving them of the administrative burden associated with the Payroll Model.


Bolds is a trusted partner for companies wanting to hire using the EOR model and has a track record of hundreds of satisfied clients and employees. Let us take the burden of hiring in the US off of your shoulders.

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