Difference Between Employer Of Record And Staffing Firm

Many people often get confused related to the variation between an employer of record and a staffing company. Most make the mistake of thinking they are one and the same, the reality is these terms have different entities and serve various purposes. Although an employer of the record works with a Staffing Agency USA, each has specific roles and responsibilities in their perspective relationship.

In this, a collaborative relationship exists between an Employer of Record and its client, which can be a business agency. While an employee does jobs for the client and International Global Employer of Record Services in USA, assumes the role of employer for tax purposes. In this segment, we are going to acquire certain information regarding the divergence between EOR and staffing firms in detail.

Purposes of Employer of Record Service:

An employer of the record services as an employer for tax reasons. While the employee works for customers, such as a staffing firm and other business. They handle all personnel functions, including payroll processing and funding, employment contracts, and paperwork. Maintain a certificate of insurance, E-verify forms, and worker’s compensation are done.

An EOR also performs background checks and drug screenings, administers benefits, and many worker issues. In contract, a staffing firm recruits employees then assigns them to business projects. Permanent staffing is intent to retain the employee for an extended period of time and focused on essential business operations. The staffing firm employees majorly focus on matching temporary, temp-to-hire, long-term, and permanent workers with clients in need.

Details about Employment of Record

When you hire a company, the employer of records can provide a comprehensive list of services. They are mentioned below for your consideration:

• They handle your human resources and personnel functions.
• Able to hold your employment contracts and paperwork connected to the employee.
• They also manage tax deposits and filling.
• They will mitigate employee complaints and perform terminations if needed.

Know about staffing firm

Staffing firms are designed to work directly with your company. In general, staffing agencies work with an EOR, as they refer the employee to you. 

• Firms assign employees to business as they match.
• Recruit employees for requested knowledge and skill-set.
• They fill short-term staffing space for companies such as seasonal work, temporary skill shortages, and exclusive projects.

Understand responsibilities & liabilities

The staffing agency owner retains control over business operations and responsible for workplace safety and compliance. The EOR assumes responsibilities and liabilities for employment problems such as taxes, payroll, and maintaining employee records. Because the Employer of Record has the responsibility for compliance and tax laws, the staffing services owner attains peace of mind, knowing qualified professionals are taking their business.

Whereas contract staffing fulfills the organization's short-term requirements and concentrates on completing specific needs that may not be part of the core business operations. An EOR and staffing agency probably work together, and they have diverse purposes in the work environment. In short, there are many outsourcing benefits towards the Global Employer of Record Payroll Service USA in terms of savings in costs and time.