As companies expand their operations across borders, they face the daunting task of managing payroll, compliance, and local regulations.

This is where an EOR comes in, acting as the legal employer on your behalf.

This allows your business to hire talent from around the world without the hassle of setting up local entities.

In this article, we'll explore the best employer of record for 2025, with a special focus on why Rise stands out as your ideal solution.

Key Takeaways

  • Rise is considered the best EOR for 2025 due to its hybrid payroll options, including both fiat and cryptocurrency payments.
  • Using an EOR like Rise saves businesses significant time and money while ensuring compliance with local labor laws.
  • Rise offers unmatched flexibility and support, making it easier for businesses to expand globally without the hassle of setting up local entities.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party organization that takes on the legal responsibilities of employment for workers on behalf of another company.

The EOR handles essential HR functions such as payroll, benefits administration, tax filings, and compliance with local employment laws.

Essentially, the EOR acts as the legal employer, while the client company maintains control over the day-to-day management of employees.

Why Businesses Need an EOR

Businesses looking to expand into new markets face numerous challenges, including unfamiliar labor laws, complex payroll regulations, and high costs associated with setting up local entities.

An EOR helps mitigate these challenges by providing a compliant and cost-effective way to hire international talent, making it ideal for businesses managing a global workforce.

Challenges of Global Hiring Without an EOR

So you know what an Employer of Record is and why you might need to partner with one, but for even more clarity we're going to outline the specific challenges that arise when you try to hire international employees without an EOR.

Let's take a look:

Complexity of Local Regulations:

Hiring employees in a new country means dealing with unfamiliar labor laws, tax requirements, and employment regulations.

Every country has its own unique set of rules, and without local expertise, navigating these laws can be incredibly challenging and risky.

Failure to comply can result in hefty fines, legal penalties, and reputational damage.

Related: Hiring International Contractors - The Ultimate Guide

High Costs and Time Investment:

Setting up a legal entity in each country where you want to hire employees is not only costly but also takes significant time.

The administrative burden of establishing and maintaining local entities can be overwhelming, especially for small to medium-sized businesses.

This means more time spent on paperwork rather than focusing on strategic growth.

Risk of Misclassification:

When hiring independent contractors internationally, there is a high risk of worker misclassification.

Governments are increasingly cracking down on companies that incorrectly classify workers to avoid providing benefits or paying certain taxes.

For example, employers can face fines ranging from $5,000 to $25,000 per violation in California alone for misclassifying workers

Without an EOR, companies may inadvertently misclassify workers, leading to potential legal challenges and financial liabilities.

HR and Payroll Challenges:

Managing payroll across different jurisdictions is a logistical headache.

Every country has different pay cycles, tax obligations, and requirements for employee benefits.

Ensuring that payroll is accurate and compliant without an EOR means needing specialized knowledge of each market, a requirement that many growing businesses struggle to fulfill.

Benefits of Using an Employer of Record

Cost and Time Savings

Setting up a local entity in a new country can be both time-consuming and expensive.

By using an EOR, businesses can avoid these burdens, saving significant time and money.

For example, establishing a legal entity on your own can range from $78,000 to $128,000, depending on various factors like location and compliance requirements.
In contrast, with Rise acting as your legal entity, you immediately save those costs.

Additionally, an EOR streamlines HR processes like onboarding and payroll, enabling companies to focus on core operations and strategic initiatives.

Risk Mitigation

Compliance with local labor laws is a major concern for businesses expanding internationally.

An EOR minimizes compliance risks by managing all employment-related liabilities, including tax filings, employee benefits, and adherence to local regulations.

This greatly reduces the likelihood of costly legal issues and ensures that all employment practices align with local laws.

Access to Global Talent

One of the biggest advantages of using an EOR is the ability to access a diverse and skilled global talent pool.

With an EOR, companies can hire the best talent in various countries without needing to establish a local presence, which is particularly beneficial for remote work and international expansion.

Why Rise is the Best Employer of Record for 2025

While there are numerous EOR services available, Rise distinguishes itself as a leader in the field for several compelling reasons:

Comprehensive Compliance Management

Dealing with international regulations can be challenging, but Rise makes it easy by handling all aspects of compliance for you.

From payroll taxes and local employment laws to Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, Rise ensures your business stays compliant across borders.

This careful attention to detail greatly reduces the risk of penalties and legal issues, allowing you to operate confidently and with peace of mind.

Time and Cost Efficiency

One of the standout benefits of partnering with Rise is the significant time and cost savings it offers.

By eliminating the need to establish local entities and efficiently managing all HR processes, Rise frees your business from administrative burdens.

This efficiency allows you to redirect resources towards strategic growth and scaling your operations, ensuring you remain competitive in a fast-paced global market.

Global Talent Pool Access

The modern world is extremely interconnected which means accessing a diverse and skilled workforce is no longer an option, but is in fact necessary.

This is why Rise makes it seamless for businesses to hire and onboard talent from around the globe, including in key markets like the U.S.

With Rise, you can expand your workforce without the complexities and headaches of navigating local employment laws.

This access to a global talent pool, including remote employees, empowers your business to innovate and thrive.

Unique Features

Rise truly sets itself apart with its innovative offerings, such as hybrid payroll options.

This feature allows for payments in both fiat and cryptocurrency, catering to the needs of modern businesses and employees who value flexibility in how they receive compensation.

By embracing cutting-edge solutions, Rise positions your business at the forefront of industry trends.

In summary, Rise is not just an EOR; it is a strategic partner that empowers your business to navigate the complexities of global expansion with ease and confidence.

Rise EOR Key Services Explained

  • Payroll Processing: Rise provides hybrid payroll options, supporting payments in both USD and USDC. This flexibility ensures that businesses can cater to diverse employee preferences while maintaining full compliance across different jurisdictions. Rise also handles payroll taxes, payslips, and accurate employer burden calculations, making payroll seamless and compliant.
  • Benefits Administration: Rise manages employee benefits, ensuring that packages comply with local regulations while meeting employee needs. This includes health insurance, social security contributions, and other locally mandated benefits, which helps improve employee satisfaction and retention.
  • Onboarding and Offboarding: Rise provides comprehensive onboarding and offboarding support, managing everything from employment contracts and background checks to the termination process. This ensures that all employees are smoothly integrated into or transitioned out of the company, while adhering to local labor laws.

Rise EOR Solutions for Specific Business Needs

EOR for Web3 Companies:

Rise’s EOR services are particularly well-suited for Web3 companies, startups, and DAOs.

By supporting crypto to fiat payroll processing and ensuring compliance with U.S. employment laws, Rise helps Web3 companies manage their workforce effectively without needing to establish a local entity.

Rise's Web3 EOR service is designed for the fast-paced Web3 industry, helping blockchain startups, DAOs, and crypto projects thrive in a decentralized world.

Rise understands the unique challenges Web3 projects face.

From dealing with compliance in the DeFi space to handling crypto payroll, Rise is here to support the growth of your blockchain business.

EOR for International Businesses Expanding to the U.S.:

For international businesses aiming to expand into the U.S., Rise simplifies the process of hiring employees by eliminating the need to establish a local entity.

By expertly managing compliance, payroll, and benefits, Rise allows these companies to focus on market expansion and strategic initiatives.

This means you can tap into the vast U.S. talent pool quickly and efficiently, gaining a competitive edge in one of the world's largest markets.

With Rise handling the administrative burdens, your business can concentrate on building strong customer relationships and driving innovation in your industry.

Conclusion

As we can see from the points above, Rise stands out as the best EOR for 2025 due to its comprehensive compliance management, time and cost efficiency, access to global talent, and unique hybrid payroll solutions.

If you’re looking to expand your business internationally and need a reliable EOR partner, Rise is here to help.

Simplify your global hiring, mitigate compliance risks, and focus all of your time on growth.

Book a demo today to learn more about how Rise can support your expansion goals.

FAQs

  • What is an Employer of Record (EOR)? An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company, managing HR tasks like payroll, taxes, and compliance.
  • How does an EOR save time and money? An EOR saves businesses the time and costs associated with establishing a local entity, navigating complex labor laws, and managing payroll and compliance, allowing companies to focus on strategic growth.
  • Why choose Rise as your EOR in 2025? Rise offers comprehensive compliance management, cost-efficient HR solutions, access to a global talent pool, and unique features like hybrid payroll options, making it the best EOR choice for 2025.

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