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Questions & Answers

Is using a traditional EOR risky?

Yes, especially as you scale. The reason for this is simple: traditional EORs are operating on the edge of being legal. It ma be OK for the first 2-3 employees, as you could legitimately tell the legal and regulatoryu authorities that you are testing the market. However, above that number it becomes less and less likely that you would pass their basic tests. And, once assessed as being an established business, it is likely that penalties will be applied for the past as well as ongoing operations.

We work with a specialised, highly experienced, independent advisor who can confidentially help you assess the degree of risk you run. Please contact us by email or phone if you would like to know more.

 

Our approach is very different: compliance is at the heart of everything we do. EOR-Solutions manages technical, commercial and administrative teams for any IT (principally hardware, software, AI related), security or facilities-related roles that require coverage, either 24/7 or outside of your normal US business hours. In practice, this minimally means we assist in staff recruitment and management, and that day-to-day business issues and escalations are triaged by us whenever necessary. Based upon the unique needs of your organization, we also provide support and guidance in other ways for your European staff or customers.

 

Our service is designed to remove the risks and stress of managing international growth from our client’s directors and senior management, enabling    them to focus on building their business.

Our key EOR services include:

  • Transferring, growing and managing dedicated commercial and technical support teams.

  • Providing 24/7 monitoring and incident response. management

  • Full responsibility (within your existing guidelines and processes) for resource management, payroll, hiring and training.

Can tax authorities ignore the traditional EOR structure?

Yes. Provided your activities meet the threshhold, they will assess tax regardless of your existing EOR, and are increasingly inclined to do so. 

Our service is designed to remove that business risk from business owners and leadership teams, with its attendant and disproportionate amount of time, stress and distraction such an investigatory process would involve.

Why are traditional EORs still popular?

Beats me!

I guess it's understandable - the traditional EORs have been around for a long time, they are profitable and well-funded, and it has taken a surprisingly long time for European authorities to catch up with their activities. However, that process is now accelerating and is expected to become a very significant problem over the next 2-3 years.

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