Compliance is a necessary aspect of any business, regardless of location. As a business owner, you must ensure compliance. Processing the required paperwork can be challenging and costly, but you don’t have to handle it all yourself.
Many companies use third parties like an Employer of Record (EOR) to help them navigate the dizzying array of requirements they may encounter while managing their compliance programs. These third-party service providers can also include clinical research specialists, virtual assistants, and accounting professionals.
But what compliances do business owners need to know when using an EOR? Let us get to know all of it in this blog so it can help your decision to use and have an EOR compliance for your business.
What does EOR compliance mean for a business owner?
Business owners should be mindful that compliance requirements vary by country. These are the rules and regulations for a business to run legally. As someone who owns a business and wants to use an EOR, you are still responsible for complying with these things with their help. You also oversee taxes, benefits, and the total wages the EOR will follow. In addition to these legal responsibilities, it is also vital that your company has a system in place to keep track of important information.
Employers must withhold federal income tax from their employee’s wages and compensations. This action from the employers will make the employees feel secure and valued in their workplace. Mandatory benefits for employees are also compliance requirements that employers should fulfill. The employees deserve Social Security contributions and Health Maintenance Organization (HMO) for their future and security purposes.
Things to ensure when working with an EOR
Safety should always be the top priority when using an EOR for your company. The owner must ensure that you have chosen the proper organization. The EOR should be safe from data breaches and employee and third-party fraud.
If a hacker gets into the system, it will cost you time, stress, and money to fix the problem. As a result, your company’s and employees’ information would be at risk when that happens.
To avoid mishaps in the business, be reminded of these things when complying with an EOR to have a smooth transaction working together.
- Data breaches
As a business owner, you should have a backup plan for any potential security breach at the company or within a specific department. The best way to prevent these incidents is by following strict standards and procedures when handling sensitive information.
Encourage all employees to keep necessary documents organized within the company systems to prevent them from getting lost during daily operations. This simple yet effective measure helps protect the company’s information and ensures a smooth workflow. EORs also implement this practice to safeguard their clients’ data against potential breaches.
- Employee and Third-party fraud
It’s essential to have measures in place to prevent fraudulent activities in the workplace. By implementing proper security protocols and regular monitoring, businesses can minimize the risk of employees accessing sensitive information without authorization. The company can take appropriate actions following its policies and legal guidelines to ensure accountability and prevent future incidents if fraud occurs.
In dealing with third parties, there should be proof of legitimacy that it runs legally. Do a background check and research different information about them until it proves otherwise. Always be on the lookout and resist falling for false promises to avoid these situations.
- Transparent transactions
Transparency in any business agreement is essential. It gives security to everyone involved on both sides of the transaction. Thus, ask for clarity when making a deal with organizations.
Exemplary virtue involves honesty, which can have positive outcomes in the business world. Gaining trust and possible contract extensions are among the possible results. Running a business honestly also promotes efficiency and prevents problems arising from hidden agendas.
Why should I use a third-party EOR provider rather than setting up my own system?
EOR provides solutions that help reduce your risk of non-compliance, save time on payroll and HR tasks, improve employee satisfaction, improve your bottom line, and minimize penalty fines. They also work with various clients across industries to provide the practical solutions they need for their businesses.
Utilizing their services lets you prioritize what matters most: growing your business and enhancing customer care. This way, you can avoid the stress of handling compliance issues, which can become significantly costly in the long run if not addressed correctly.
You are ready to go now that you know the necessary information and are in compliance with an EOR. It is time to find and hire an EOR company that can help your business be successful.
One CoreDev IT (CORE) is here to give you the best EOR solutions for your business. Our company offers many cost-efficient solutions, such as back-office, project management, and low-code software development. Our outstanding team of experts can help with your needs. For any inquiries, contact us today!