I was doing some research on outsourcing employment services, and I stumbled upon this link: https://theemployerofrecord.com/blog/knowledge-base/how-much-does-an-employer-of-record-cost-2025. It got me thinking—how exactly do these costs break down? Are they based on a flat fee, percentage of payroll, or something else? I’m trying to figure out if using an Employer of Record (EOR) would be cost-effective for my small business. I’ve been considering expanding my team internationally, but I’m not sure if the added expense is worth it. Anyone here with experience using an EOR? Would love to hear your thoughts or advice!
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I’ve looked into this quite a bit and actually used an EOR for hiring remote employees. Based on the link you shared, the cost structure typically includes a percentage of the employee's payroll (usually 10-15%) or a flat monthly fee per employee. This covers compliance, payroll management, and other administrative tasks. What’s great about EORs is they handle all the legal nuances, especially for international hires, which can save you a lot of time and stress. If your business is small and you’re not ready to set up a legal entity in another country, an EOR is a smart and scalable solution. It might seem like a significant expense upfront, but when you weigh it against the potential cost of non-compliance or legal issues, it’s well worth it. I’d definitely recommend checking them out if international expansion is on your radar.