Everything you need to know about hiring internationally.
Straightforward answers to the questions US companies ask most when building global teams, from EOR basics to compliance, cost, and how Hirela NYC works.
What is an Employer of Record?
An Employer of Record (EOR) is a company that legally employs workers on behalf of another business. When a US company wants to hire someone in Brazil, Colombia, Poland, or the Philippines, they typically cannot do so directly without establishing a legal entity in that country. That process can take months and cost tens of thousands of dollars. Hirela NYC manages the full employment structure in each country, handling employment contracts, payroll, taxes, benefits, and compliance, while the client company directs the employee's day-to-day work. The result: you get the talent, we handle the complexity.
Common questions about international hiring.
Everything US companies ask before their first global hire.
Key terms in global hiring.
Employer of Record (EOR)
A company that legally employs workers on behalf of another business in a foreign country, handling payroll, taxes, benefits, and compliance while the client company directs the work.
Professional Employer Organization (PEO)
Similar to an EOR but typically requires the client company to have an existing legal entity in the country. An EOR does not require a local entity; a PEO usually does.
Permanent Establishment Risk
The risk that a company's activities in a foreign country create a taxable presence (a 'permanent establishment'), triggering corporate tax obligations in that country. Using an EOR correctly helps mitigate this risk.
Worker Misclassification
Treating an employee as an independent contractor when local law requires them to be classified as an employee. Misclassification can result in back taxes, penalties, and retroactive benefits obligations.
Statutory Benefits
Benefits required by law in a given country, such as paid leave, social security contributions, health insurance, pension contributions, and severance pay. An EOR ensures all statutory benefits are provided correctly.
Global Payroll
The process of paying employees in multiple countries, each with their own currency, tax rules, and statutory requirements. An EOR consolidates this into a single invoice for the client company.
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