Are you an independent contractor working for an overseas company? Seeking stability, benefits, and security in your work life? Then it is time to consider the advantages of Employment through Employer of Record (EoR) over the traditional independent contractor route.
Why choosing EoR might just be the best decision you make for your career:
An Employer of Record (EoR) acts as a bridge, providing the benefits and protections of traditional employment while allowing contractors to maintain their working relationship with their contracting company. It’s a hybrid model that combines the flexibility of contract work with the stability and benefits of permanent employment.
Stability and Security for Both Parties
EoR offers stability not only to employees but also to the contracting company. Contractors enjoy the security of an employment contract, paid time off, and access to benefits like medical aid and retirement plans.
For the contracting company, EoR mitigates risks by ensuring compliance with employment laws and regulations, reducing the potential for legal complications.
Tax Compliance and Predictability
It’s common for independent contractors to expect a flat rate of 25% tax deduction. However, many find themselves in for a surprise during tax assessment when they realise, they owe more due to their earnings pushing them into a higher tax bracket. This unexpected tax burden can be avoided by opting for employment through an Employer of Record. By doing so, the EoR will ensure tax compliance and eliminate any tax surprises on assessment for the employee.
Legal Protection and Access to Benefits
Working through EoR shields contractors from legal issues such as misclassification or contract disputes, as they are protected by employment laws and regulations. Additionally, contractors gain access to benefits like medical aid and retirement plans typically reserved for full-time employees, enhancing their quality of life and financial security.
Administrative Support
EoR takes care of administrative tasks, including managing employee payroll taxes, invoices, and paperwork, allowing contractors to focus on their work without the burden of administrative responsibilities.
