If you already have a local entity or subsidiary overseas which employs and pays your overseas employees, you may save tens of thousands by switching to an international employer of record (EOR) solution.
Horizons assists companies to switch from a local entity to an international EOR solution. This saves money, time, and ensures full compliance with local tax and payroll laws.
Switching from a subsidiary to an EOR means that the EOR takes over payroll, HR, recruitment, and employee onboarding. It is a full-service HR and payroll solution, leaving you to focus on your core business.
The global EOR takes care of employee hiring, payroll, benefits distribution, and HR duties for your overseas team. This is usually more cost-effective than managing it through your local subsidiary.
Instead of an entity in each country you hire staff, you deal with just one EOR, who can cover 180+ locations.
The EOR is an expert in labor and lax laws anywhere in the world. They ensure you are compliant, leaving you to focus on core business.
There are numerous benefits in switching your international workforce from a subsidiary to an international EOR:
01. Reduced payroll costs — as payroll and hiring experts, Global EORs process payroll and administer benefits, quickly, and without errors.
02. Reduced compliance costs — no need to engage separate lawyers or tax advisors.
03.One point of contact for your local team (the EOR) — instead of multiple entities/subsidiaries
04. Strategic advice from global HR experts — for when unexpected questions come up.
05. Simplified payments — one monthly invoice for your global team, rather than paying separately in each country.
Hire and pay talents
with Horizons in
First, the client business and Horizons enter into an EOR agreement. This identifies all the roles, and responsibilities and liabilities of the client company and the EOR.
Any existing employees can be switched to the EOR. Usually, this means ending the employee’s contract with the local entity and beginning a new one with the EOR.
Horizons can source, hire, and onboard your global team members anywhere in the world. Through a co-employment arrangement, Horizons becomes the Employer of Record, but your company continues to manage and supervise workers on a day-to-day basis.
Horizons takes care of monthly payroll, including taxes, deductions, benefits and expense reimbursement. Through the Horizons portal, you can review employee status and payroll at any time.
With the EOR hiring your local team and taking care of payroll and compliance, you may be able to wind down your local entity or subsidiary. If you need further assistance in this matter, Horizons can support you.
Yes. There may come a point in your international expansion where it makes sense to switch from an EOR to a local entity or subsidiary. If that happens, we can ensure a smooth transition from the EOR to the subsidiary.
Not necessarily. You may wish to use the local subsidiary to enter into local contracts, send local invoices and open a local bank account. At the same time, you can transfer payroll and employment responsibilities to an international EOR.