45 Questions to Ask When Comparing Employer of Record Providers

Employer of record providers come in different forms, so you need to understand what kind of questions to ask when comparing their services.
Man on the phone asking questions about employer of record providers.

Employer of record providers come in many different forms, and each has their own unique way of handling employer of record (EOR) services. These differences may seem trivial in some respects, but depending on your business model and intended country of operations, they could have quite a significant impact practically. 

If you haven’t worked with an employer of record provider before, figuring out exactly what to ask when you get on a call with their sales team can seem intimidating. To help you along the way, here are some of the key areas you need to think about when comparing EOR providers and a set of 45 questions that will help you plan what to ask each one.

Table of Contents

1. Scope of Services

Some EOR providers cover everything you would ever need in hiring someone abroad, whereas others have much more limited scopes of service that cover only the essentials (leaving you to figure out everything else). Exactly what you will need will depend on the role that you’re hiring for, the country of operations, any existing operations you have in that country, and a multitude of other factors. 

Generally speaking, though, you should ensure that the employer of record providers you are considering have the ability to employ and payroll an individual 100% compliantly in your chosen country of operations. This sounds like the bare minimum for any EOR provider – and you’d be correct in thinking that – but many payroll only providers look very much like EOR providers until you dig into the details of their service offerings.

Here are some questions to ask to understand the full scope of an EOR provider’s services:

  1. What kind of employment setup (full time, part time, contractor only) do you offer?
  2. Are there any minimum or maximum durations applicable to that employment?
  3. Will my intended hire be an employee or a contractor of your EOR company?
  4. Do you offer employment contracts? If so, do you assist in negotiation?
  5. Do you have any established onboarding processes for new hires? Can client companies supplement existing onboarding processes with their own?
  6. How do you register my intended hire with the local labor authorities?
  7. Will the employee be able to obtain proof of employment through your company?
  8. Do you handle individual income tax and social security contributions as part of the payroll?
  9. Can you make pension contributions as the individual’s employer?
  10. What employee benefits can you offer?
  11. Do you offer health, dental, or life insurance?
  12. Do you track or monitor statutory or discretionary leave entitlements?
  13. How do you maintain compliance with local labor laws? What do I need to be aware of as the employee’s manager?
  14. Do you provide any supplemental services, like recruitment or incorporations for further business expansion?
  15. Do you administer 100% of your services in-house, or is some of it outsourced? If outsourced, how do you ensure quality of service?

2. Fees and Payments

Once you fully understand the scope of service you are to receive, you need to inquire about fees and payments. This is where employer of record providers differ greatly, with some offering flat fee monthly services and others charging different amounts each month depending on services rendered.

Here are some questions to help you understand exactly what will be charged and when:

  1. How do you calculate the total payroll costs each month?
  2. Do you provide a fully transparent breakdown of payroll costs?
  3. What fees do you charge? Can I see a full fee schedule?
  4. Do you require a deposit? If so, what does the deposit cover?
  5. Is there a separate fee for setup or termination of the arrangement? If so, how much?
  6. Do you charge a flat monthly fee in addition to payroll costs, or is it a variable percentage fee?
  7. Do you charge or markup expenses to be reimbursed to the employee?
  8. Can you disburse ad hoc discretionary payments to employees, like bonuses and commissions? If so, what is the charge?
  9. Is there an extra charge for handling contract terminations with the employee (e.g. lawyer’s fees if there are conflicts)?
  10. How do you handle currency conversions? Do you regularize invoices in line with currency changes throughout the billing cycle?
  11. What international wire fees do you charge?
  12. What payment methods are available (credit card, debit card, BACS, international wires, checks, etc.)?
  13. Do you offer any refunds? If so, what for and what are the restrictions?
  14. Do you charge any fees or penalties for late payments?
  15. What is the required payment schedule or monthly cut-off dates for payments?

3. Software Offerings

Many employer of record providers have their own software offerings to supplement their services. Some even deliver the entirety of their service provision digitally through software. In these cases, it is important to understand what the software is and how you are expected to use it. Provisions vary widely in this department, with some companies offering cutting-edge proprietary software and others simply piggybacking on third party services (like cloud-based file storage). 

Here are some questions to identify what software is available and how you can use it:

  1. Do you offer any software as part of the EOR service?
  2. What exactly does the software do?
  3. Does the software work for every country?
  4. Is there an additional charge for the software or is it included in the service fee?
  5. Can I make and manage payments through the platform?
  6. How many users from my company can access the platform?
  7. Do employees have access to the platform? If so, what can they see?
  8. Can I onboard new employees directly via the platform?
  9. Is it possible to generate and edit contracts using the software?
  10. Can I track my employee’s leave requests on the platform?
  11. Can I manage and pay expenses through the platform?
  12. Can I see what benefits packages each employee has on the platform?
  13. What reports and analytics are available? Can data be imported/exported?
  14. What integrations do you offer with other software platforms (such as accounting software or applicant tracking software)?
  15. Does the software have in-built help guides or resources for employers?

Get More Information on Employer of Record Providers

The EOR industry is a relatively new one, so it can sometimes be difficult to compare providers and understand the full range of options out there. Asking these types of questions certainly helps, and if you need more information on specific employer of record providers, check out our detailed EOR provider comparisons.

Top EOR Providers

ProviderOverall Company RatingOverall Employee RatingOverall EOR Rating
Horizons 🏆4.95
Deel4.54.74.6
Remote4.34.04.2
GoGlobal3.94.14
Globalization Partners3.84.14

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