An Employer of Record (EOR) is a third-party organization that helps businesses engage and manage employees in other countries without setting up a local entity. Through an EOR, companies can manage payroll, benefits, and taxes more easily and help maintain compliance with local labor laws, while the company directs the employee’s daily work.

By partnering with an EOR, like Payoneer Workforce Management, businesses can expand into new markets efficiently, help reduce legal risks, and support the management of a global workforce.

An Employer of Record (EOR), like Payoneer Workforce Management, helps companies grow globally while reducing administrative complexities. It also helps cut the time and cost of setting up entities and simplifies cross-border hiring.

Beyond hiring and payroll, an EOR adds value by:

• Enabling market testing and rapid scaling without long commitments
• Providing predictable costs through consolidated payroll and invoicing
• Helps reduce the risk of legal exposure tied to misclassification and local employment rules.
• Giving access to vetted local benefits and HR support in the employee’s country
• Streamlining onboarding and offboarding with well-structured and compliant employment contracts.
• This lets businesses focus on strategy, customers, and team performance instead of admin work.

Payoneer’s Workforce Management platform helps your business grow globally by seamlessly engaging, managing, and paying talent through Employment of Record, Agent of Record, and contractor management services. With localized support in 160+ countries and territories, we make it easier for your business to onboard, pay and manage employees and contractors, while meeting local compliance requirements.

In the U.S., using an Employer of Record (EOR), like Payoneer Workforce Management, is a legal and recognized way to engage international employees. The EOR acts as the legal employer, managing payroll, taxes, and compliance in line with local labor laws.

However, regulations differ by market, and some countries have specific requirements for how employment arrangements must be structured or licensed. Partnering with a knowledgeable, compliant EOR helps businesses navigate these differences and help businesses engage global talent in a compliant manner.

An Agent of Record (AOR) is a third-party organization that helps companies engage and manage independent contractors or freelancers. The AOR helps handle contractor onboarding, contract management, payments, and compliance with local regulations, while the company communicates the contractor’s work and deliverables.

Partnering with an AOR, like Payoneer Workforce Management, helps businesses work with global contractors in a compliant manner, with proper classification, independent contractor agreements, and smooth payment processes across different markets.

Companies can work directly with independent contractors and freelancers, managing contracts and payments on their own. Others use freelance platforms or payment providers for short-term projects.

For long-term or larger-scale engagements, partnering with an Agent of Record (AOR) is one of the most reliable approaches. An AOR, like Payoneer Workforce Management, helps onboard contractors, supports with creating independent contractor agreements, helps manage payments in local currencies, and helps maintain proper worker classification per local laws. This allows companies to work with global talent confidently and helps them stay compliant across markets.

A Contractor Management System (CMS) is a digital platform that helps companies manage their independent contractors and freelancers in one place. It streamlines key processes like contract management, project tracking, invoicing, and payments.

A CMS gives companies better visibility over their contractor workforce, helping maintain accurate payments and proper documentation. When paired with an Agent of Record (AOR), it simplifies every stage of global contractor management.

To pay international contractors in local currency, companies can use global payment platforms, international wire transfers, a Contractor Management System (CMS), or partner with an Agent of Record (AOR) to engage international contractors.

With a CMS, businesses can track invoices, automate payment approvals, and pay contractors accurately and on time in their local currency. When paired with an AOR, companies can simplify and centralize global contractor management.