Employer of Record - General - Flexible and hybrid working

3 Employer of Record

Simon | 0 Posts

8 Jul, 2022 10:52

Hi all

We are slowly entering into the global job market and are seeing the same challenges that have been discussed here before about the DIY approach and the potential risks.

We are based in the Channel Islands and don't presently have an entity in the UK. We are looking at hiring a remote IT contractor to work on our service desk but won't be doing any sales, business development etc. We are trying to work out the most efficient but cost effective route to hiring this employee and whether or not we use an EOR.

As we haven't used an EOR before or hired outside our jurisdiction, I was hoping to get some opinions on the following:

Are there any downsides for the employee entering in an employer of record agreement?
If allowed, are there any recommendations on EOR's (We are looking at Remote)?
As we won't have an entity or registered business in the UK, how easy it is to DIY our payroll for the purpose of tax and social security payments.

Really appreciate anyone's thoughts and time.

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David | 0 Posts

8 Jul, 2022 13:49

Hi Simon

Might be a lot more straightforward and less expensive to do all this with the IT bod as a business to business contractor, via a limited company, either 'umbrella' or their own.

This is accountancy and not really HR, but eg
www.itcontracting.com/.../
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Robey | 0 Posts

11 Jul, 2022 08:25

Are there any downsides for the employee entering in an employer of record agreement?

Expense. You'll pay 20-50% more for the labour via an EOR.

If allowed, are there any recommendations on EOR's (We are looking at Remote)?

It's an extremely volatile marketplace, right now. I currently work for an EOR called Parasol that was on a list of similar providers recommended by my agency and whilst I'd far rather work outside IR35 (as I have the necessary infrastructure in place) they are good enough that I don't resent them too much. But there are EORs popping up all over the place, as you might expect when you consider how little work they have to do for their money.

As we won't have an entity or registered business in the UK, how easy it is to DIY our payroll for the purpose of tax and social security payments.

Extremely difficult and payroll services should be one of the services provided by the EOR. In fact, it's how most of them make their money.
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Rebecca | 0 Posts

9 Aug, 2022 10:34

In reply to Robey:
Hi Simon, after looking into a few options we've just started using an EOR, only because we in a permanent employee situation and we didn't want a shorter term contractor. Early days yet so we'll see how it works out. Payroll definitely included, one of the bits of expertise you are paying for is to ensure compliance with all local taxes, allowances, benefits etc. It is not a cheap option. We looked at providers Velocity and also Safeguard global. TBH even understanding the breakdown of the charging between the two quotes was a challenge for our Finance team.
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