Why use an Employer of Record?

An Employer of Record is the legal employer of the people who work on your projects. The EOR hires them, runs their payroll, withholds and remits their taxes, administers their benefits, and carries the employment liability — while you continue to direct the day-to-day work.

For companies that engage contractors, freelancers, project crews, or short-term specialists, this removes an entire category of administrative burden and legal exposure without adding internal headcount.

Speed: workers can be onboarded in days rather than weeks, in states where you have no entity.

Risk transfer: worker classification, wage-and-hour rules, unemployment insurance, and workers' compensation all sit with the EOR.

Cost clarity: one consolidated invoice replaces a sprawl of contractor agreements, expense processes, and benefits administration.

EOR is strongest for variable, project-based, or geographically dispersed labor — production crews, IT project teams, seasonal ramp-ups, and pilot expansions into new states.

If you are hiring a stable, long-horizon core team in a state where you already operate, direct employment usually remains the simpler answer.