Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that serves as the legal employer for workers in jurisdictions where the hiring company doesn't have an established entity. EORs handle payroll, tax withholding, benefits administration, and employment compliance, enabling companies to hire talent globally without setting up local subsidiaries.

Popular EOR providers include Deel, Oyster, Remote.com, and Papaya Global. These services have become essential infrastructure for distributed tech companies hiring across borders. Typical EOR fees range from $300-$700 per employee per month, plus any country-specific mandatory benefits and contributions.

For AI and tech startups, EOR services have been transformative — enabling small teams to access global talent pools that were previously available only to large enterprises with international offices. When combined with AI talent marketplaces that match candidates regardless of location, EOR services remove the last major barrier to truly global hiring.