• Employer of Record FAQ

    Still wondering if an Employer of Record (EOR) is right for your business?

    We’ve gathered some of the most frequently asked questions about Employer of Record Services to help you assess the benefits.

    If anything is not addressed below, feel free to send us a note!

    Employer of Record Frequently Asked Questions

    What is an Employer of Record (EOR)?

    Employer of Record (EOR) Services is an outsourced business solution which takes on all the employment responsibilities for a group of employees.  EOR Services function as the legal employer for the employee, taking care of all employment-related responsibilities such as payroll, benefits, and compliance which allows businesses to focus on their core offerings without the stress that comes with managing the back office.

    How do Employer of Record Services work?

    The EOR Services provider hires the employee on behalf of the company and becomes the legal employer of the staff.  The provider handles all employment-related responsibilities for the employee, including payroll, benefits, and compliance with local employment laws.  The company continues to manage and direct the work of the employee, while the EOR Services provider handles all the employment-related administrative tasks.

    Why would a company use Employer of Record Services?

    • An EOR allows companies to hire employees in areas where they do not have a local entity. Employer of Record services are registered nationwide and, in some cases, other countries which allows businesses to hire the best candidates regardless of location.
    • To avoid the cost and complexity of setting up a local entity to administer payroll and benefits.
    • To minimize or eliminate risk by offloading the risk to the Employer of Record.
    • Ensure compliance with local employment laws and misclassification.
    • To simplify the process of hiring and managing employees in multiple locations.

    To focus on the core purpose of your business or organization without the additional hassle of employment-related administrative tasks.

    What should companies consider when choosing an Employer of Record Services provider?

    • Reputation and experience of the provider
    • Quality and availability of dedicated support
    • Range of services that allow for customization to tailor needs
    • Provider has cutting edge technology and platforms that allow for ease of use

    Why would a business want to use a Nationwide employer of record service provider rather than a worldwide provider?

    A Nationwide employer of record service provider can offer more personalized support and tailored services that are better suited to the needs of a business. They often have a better understanding of the local legal and labor requirements, as well as any tax implications. Here at Headway, we provide each company with a personal account manager that is specifically dedicated to support their business through it all. Having that personalized experience is an extreme advantage to a company looking to focus on their core offerings while Headway manages the back-office operations.

    What are the risks associated with using an employer of record service?

    The real risk is not using an EOR and opening your organization to costly compliance issues! At Headway we are constantly improving and researching local labor laws in all fifty states and Puerto Rico to ensure that our client’s receive the most up to date information regarding laws and regulations. Avoid potential liability issues by allowing Headway to pay wages and file taxes timely on behalf of your company.    Headway ensures that our contracts are clear and tailored to each client and our dedicated account specialists are always available to provide customer support.

    How long does it take to set up an employer of record service?

    The amount of time it takes to set up an employer of record service depends on the complexity and size of the organization.  It can take anywhere from a few days to a few weeks to get all the necessary paperwork in order and get everything set up.

    How can businesses ensure that their employer of record service is dependable?

    Businesses can ensure that their employer of record service is dependable by researching any companies they are considering.  It’s important to look for a company that has experience in the industry and is knowledgeable about applicable laws and regulations. Additionally, businesses should always make sure to read reviews of the company to ensure they provide quality customer service and reliable services. Finally, it is important to request documentation of processes and policies to verify the trustworthiness of the provider.  Here at Headway, we have many testimonials by our clients that describe us as, “…super easy to work with… haves great management and flexibility… as well as responsiveness and communication is great.” It is always important to work with a business you can trust.

    Don't Take Our Word for It


    Here are some insights from our clients.


  • Headway has been a tremendous partner for us. Their responsiveness, accuracy and passion for customer service is outstanding.  Headway’s support allows us to focus on our core business knowing that our billing, collections, payroll and other back-office needs are well managed.  Without hesitation, I highly recommend Headway Workforce Solutions!   


    — Founder and Principal, HR & Career Management Firm

  • We have been working with Headway since 2016, which is over 5 years now!  Headway’s customer service far supersedes any of the other organizations we worked with in the past.  We have thrown them many challenges over the years, and they have always risen to those challenges.  Their processes and procedures have made our lives easier. They are flexible and responsive to any curveball that may come our way.  All members of the organization are very approachable and responsive. They have an excellent consultative approach to all new and different projects.  Their expertise in payroll across the country has helped us greatly, especially in those we were unfamiliar with. In addition, we can tell the organization truly cares about us as a client as well as the employees they service. 


    — Executive Director, Education and Staffing Solutions

  • From helping us create and build an onboarding system that fits our needs, to payroll and reporting that helps keep us on track, to HR support in sticky situations, the Headway team is always there with solutions that help better our business and help our teams have the best possible experience while being employed and working at our seasonal locations.    


    — Regional Manager in the Retail Industry

  • I wanted to take this moment to thank some of the people at Headway for all the above and beyond support your teams have continued to provide us with … THANK YOU!  


    — Regional Manager in the Retail Industry

  • We are strictly a seasonal business with zero year-round employees which means we start from scratch each year.  The Headway Team helps support us in this unique and crazy business by onboarding, handling payroll and all HR support to a brand-new team each season and much more! 


    — Regional Manager in the Retail Industry

  • We had been looking into bringing our concession operation in-house for years, but the fear of doubling our seasonal workforce always worried us. When we finally decided to do it bringing on Headway as a partner has made the transition seamless. They have given us the support needed to ramp up our staffing and be able to focus on customer service and making great food for our great fans.


    — General Manager in the Events and Entertainment Industry

  • Our organization's recent run of phenomenal growth in social science/survey research could not have occurred without the responsiveness and cost-effectiveness of Headway’s nationwide data collection staffing experience and strategic employment solutions. Headway has been a valued and trusted partner for nearly 15 years.


    — VP of Survey Research

  • We feel very fortunate to have found Headway at this stage in our organization’s growth. With studies operating in North Carolina and New York City, we needed temporary help for high volume survey administration and consent gathering. Headway staff recruited our local part-time helpers, who have been consistently reliable and dedicated to helping us produce high-quality research. As a growing research firm, we are now in the process of hiring six to ten new full-time employees to work on studies in a number of states and we are again turning to Headway to help us recruit, this time for our own full-time employees. Having this recruiting partner and leveraging their systems, expertise and reach, allows us to focus on what we do well rather than get overwhelmed with a short-term need to recruit. Alan, Laurie, and Ruth have all been professional, empathic, and dedicated to finding us the right people.


    — Director of Projects in the Policy and Research Industry

  • Headway exceeded our expectations by providing us with top of the line support for our staffing needs. They became a true extension of our team, adopting our initiatives as their own in order to ensure a streamlined effort to achieve our goals above and beyond.


    — Sr. Manager, Field Sales and Customer Activation

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