In today’s rapidly evolving global workforce, companies face complex challenges in hiring, managing, and compensating international talent. Deel emerges as a comprehensive solution, offering Employer of Record (EOR) and Contractor of Record (COR) services that simplify global workforce management. By providing a unified platform, Deel enables businesses to hire, onboard, and pay employees and contractors across the globe without establishing local legal entities.
The platform addresses critical pain points for organizations expanding internationally, including compliance risks, payroll complexities, and administrative burdens. Deel’s innovative approach allows companies to focus on core business objectives while ensuring legal adherence, accurate tax filing, and streamlined HR processes.
Whether scaling a startup or managing a distributed enterprise team, Deel’s EOR and COR services offer flexible, technology-driven solutions that transform traditional workforce management systems, making global hiring more accessible, efficient, and cost-effective.
Table of Contents
What is an EOR?
The Employer of Record (EOR) is a third-party organization that lawfully hires employees on behalf of another company. An EOR assumes complete accountability for all facets of employment, including payroll, taxes, benefits, and compliance.
Employers of record may be based in the same nation as the company for which it hires employees or in a different nation with distinct employment regulations. Their responsibilities differ depending on the service and region.
What Does an EOR Do?
Imagine a situation where a US-based business wants to hire a qualified individual who lives in Spain. The business can legally hire the Spanish worker by collaborating with an EOR with a Spanish entity. The new employee will efficiently contribute to the operations of the US organization while working in Spain.
An EOR will advise and assist a company in making sure that workers are employed in compliance with local laws in each nation or jurisdiction and are given employment contracts that comply with those laws. Since the EOR is the employer, the company may relax knowing that all legal matters are handled.
The EOR will oversee the employment contract and set up all the procedures required for the new team member to begin working for the company. They will handle all aspects of payroll and municipal taxes for both the business and the employee. They will pay and issue paystubs to the employees.
Although it differs from service to service, EORs frequently provide several benefits, including health insurance, vacation time, and parental leave. The EOR is also responsible for taking care of all the paperwork when an employee’s contract is terminated.
Deel EOR
Deel currently provides EOR services to over 25,000 companies worldwide. It offers quick hires and onboarding of employees on your behalf, alongside payroll, legal matters, taxes, HR, and compliance solutions, all built on one platform.
Deel has the system to pay anyone anywhere quickly. It follows GDPR, SOC2, and ISO 27001, keeping data safe and private. It’s simple and easy to use with multiple tools in place to make global hiring and management an easy task.
EOR vs. COR
Since freelancers and contractors are classified as independent workers and do not have employee status, businesses do not require an EOR partner to hire them. Therefore, processing the payroll, taxes, and social security contributions for these workers does not need to be done by a local company.
Nonetheless, employers of records, such as Deel, recognize that contractors are crucial to the workforce and that hiring such independent workers exposes the business to legal and compliance concerns, including misclassification if local contractor regulations are broken.
Agent of Record (AOR) is the solution for managing independent contractors. It covers compliance, classification, and payments. At Deel, the AOR service is called Contractor of Record (COR). It allows you to manage contractors on the same global platform as your direct employees and employer of record employees with confidence and compliance.
Since Deel is the hiring organization, it is the one in charge of classifying the contractor. As a result, there will be no legal danger of misclassification for you. If there are any instances of misclassification, Deel is entirely responsible.
Deel uses global expertise to decide who should be considered an employee and who should be considered a contractor, enabling clients to outsource that decision.
How To Get Started
If you are already a client, you might have noticed an information banner about Deel COR on your home page. A pop-up window will appear with the general details and pricing information. Click on “Get Started.”
If you don’t see any such option, follow the following steps:
- Contact Deel and explain your hiring goals. Their team will review your request and decide whether you are eligible for Deel COR or not.
- If you get approved, Deel will create a Master Services Agreement (MSA).
- Once you have signed this, go to the “Benefits & Extras” section and toggle on the “Safeguard with Deel COR” option.
- To be eligible, you have to use the standard Deel contractor agreement with no changes.
- The contract cannot be backdated.
For US United States clients, the COR contractor’s tax residence must be different from the client’s entity’s country. In Singapore, Deel COR is not supported for foreigners. It is only available for Singaporean citizens and permanent residents.
Key Deel EOR Features
We have broken down some of the main services offered by Deel EOR that truly make it stand out:
Background Checks
Using HR solutions to manage the screening process can be quite time-consuming. With Deel, background checks are integrated directly into the onboarding process. Just include a background check in the contract you draft in Deel, and you are good to go.
Deel provides accurate global background checks with the fastest turnaround times thanks to its AI-powered platform, which can search more than 200,000 databases in more than 190 countries in real time. Deel’s employment screening process includes screening for identity, education, work experience, and criminal history.
Keep track of all employee data and records, including contracts and compliance documentation, in a single HR system. Your results are secure and dependable thanks to Deel’s partnership with Certn, its background check partner. This way you can eliminate laborious verification processes. The easy-to-use smartphone app allows team members to easily input their information, track results, and receive instant in-app support.
Employee Benefits
Deel EOR offers multiple employee benefits such as health insurance, paid leave, retirement plans, bonuses, flexible working hours, childcare support, and gym memberships. Such benefits help to attract top talent, increase job satisfaction and retention, comply with legal requirements, reduce costs, and improve overall productivity.
Equity Management
Deel EOR currently offers equity in over 110 countries. It manages tax reporting, automates admin support, and oversees all compensation, all in one place. As you give equity to EOR employees, be sure that compliance is maintained. Deel’s in-house team of experts will assist you in quickly navigating the complex tax and regulatory landscape around the world. It is a great platform to centralize pay data and facilitate teams’ comprehension of their compensation.
Work Visa and Immigration Support
Whether you’re looking to sponsor an employee, a startup founder relocating to the US, or an individual who is planning to work remotely from Spain, Deel EOR has you covered! It quickly assesses visa options and delivers results within 48 hours, which include a cost breakdown and document requirements.
Equipment Management
Deel EOR is the go-to for eliminating equipment headaches. Whether your team members are working locally or internationally, with Deel, you can track, ship, and manage devices in just a few clicks. Usually, sourcing equipment across borders can take hours. With Deel, you can easily equip your team for remote work with monitors, laptops, headphones, and anything else they need to set up their home workspace.
Deel EOR also offers global IT support, reduced admin time, safe on- and offboarding, and is Infosec and tax compliant. Hofy also joined Deel to assist in managing equipment and handling everything IT-related, from software provisioning to mobile device management. Soon, they will be bringing their complete suite to Deel!
Engagement Tools
Deel EOR offers a plethora of engagement tools to support remote work and distributed teams. You can retain top talent and foster a high-performance culture with Deel’s AI-powered people suite. It can manage development, performance, and training programs. You can easily build, manage, and track engaging training courses in minutes.
Deel Engage saves time and helps everyone focus on actual development. It can provide detailed career paths. You don’t have to sit staring at a blank page or struggle trying to get managers to contribute. Use Deel Engage and unlock unrivaled insight, engagement data, and performance in one integrated solution.
Other Features
Deel’s Global People Platform guides in all stages from onboarding to offboarding. The Global Hiring Guide provides rich advice on hiring in different countries. The Compliance Hub will keep you informed about global laws and regulations.
Deel EOR offers career frameworks and individual development plans to improve development opportunities. You can create innovative manager training programs and structured one-on-ones to improve leadership. It helps foster a better culture with custom-built surveys, team meet-ups, and many more such features.
You can reduce context-switching and supercharge your connections with effortless Slack HR plugins, including PTO, kudos, referrals, org charts, and more.
Deel EOR and Global Payroll
Building on the key features, one of Deel’s biggest services, Global Payroll, simplifies managing international teams and payroll while ensuring compliance and efficiency across borders.
What is Global Payroll?
The process of calculating employee wages, withholding taxes, managing bonuses and benefits, and sending payments to your staff in many nations following local regulations is known as global payroll. It further includes tracking employees’ working hours and paid time off, maintaining payroll records, and safeguarding personal data.
Why Is It Important?
When you are working with employees scattered around the globe, you will have to transmit payments to several distinct nations, compute salary conversions, give local benefits, and take into consideration different labor rules. Let’s take the example of hiring individuals from Nigeria, Colombia, and the Netherlands. These nations have distinct rules about minimum wages, available payment options, exchange rates, currencies, tax laws, and more.
It’s a big task to manage all of the above, leading many businesses to choose a global payroll solution to streamline the process and save time, money, and effort. You will also be saving yourself from collecting severe penalties for non-compliance.
Where Deel EOR Comes Into Play
Deel EOR provides a single payroll data source, consistent real-time reporting, a hands-off global payroll process, and reliable payroll professionals for collaboration. Outsourcing your payroll globally this way frees up more time for your primary business requirements. Wherever you hire, Deel EOR will be in charge of creating contracts, onboarding, paying employees, submitting taxes, and assisting with compliance and workforce management.
Get Started Today!
Deel offers a fresh way to manage a global workforce by combining technology with international employment solutions. It provides a complete package that takes care of legal, financial, and administrative tasks, making it easier for businesses to create diverse teams without the usual hurdles. As remote work grows, tools like Deel are becoming essential for companies aiming to hire talent from around the world while staying compliant and efficient.
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FAQs
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organization that legally employs and pays individuals on behalf of another business. Deel EOR enables companies to hire employees in different countries without establishing local legal entities, handling compliance, payroll, and administrative responsibilities across 150+ countries.
What services does Deel EOR provide?
Deel EOR offers comprehensive services, including compliant hiring and employment management, global payroll processing, tax filing and benefits administration, background checks, work visa and immigration support, and intellectual property protection.
How can an EOR support global expansion?
An EOR allows companies to hire international talent without significant financial investment or regulatory obstacles. It provides access to HR professionals, payroll experts, and local compliance knowledge, effectively serving as a global expansion starter kit.
What’s the difference between an EOR and a PEO?
Unlike a Professional Employer Organization (PEO) that offers co-employment services, an EOR is the sole legal employer. PEOs operate locally and share compliance responsibilities, while EORs like Deel provide comprehensive international employment solutions.
