Home
What is an EOR?
An EOR is a legal entity that acts as the employer of record for a company's employees. While the employees perform tasks assigned by the client company, the EOR handles all aspects of employment administration, including payroll, benefits, tax compliance, and adherence to local labor laws. This allows the client company to focus on its core business activities without being burdened by the complexities of local employment management.
Role and responsibilities
We help businesses legally hire employees across China without establishing a local entity. This avoids potential legal pitfalls related to local employment laws.
HRstar undertakes various legal and regulatory obligations, including immigration, employment, payroll, and benefits for a geographically dispersed workforce. The EOR assumes responsibility for traditional employment tasks and liabilities, including payroll processing, tax filing, unemployment handling, workers’ compensation, and benefits administration.
Utilizing software platforms, our EORs offer a streamlined approach to managing these tasks, providing insights and analytics on employee assignments and related costs.
EOR China Services variety
-Draft and maintain employment contracts that comply with local laws.
-Manage payroll and tax withholdings and ensure timely payment to employees.
-Offer comprehensive benefits and handle termination and offboarding processes.
-Provide ongoing support on local labor laws and regulations.
Responsibility differences between businesses and an EOR
The responsibilities between businesses and an EOR are distinctly partitioned, with EORs handling international employment's legal, payroll, HR, and compliance aspects. In contrast, businesses maintain control over their core operations, strategic direction, and daily management of the workforce.
Aspect | Business responsibility | EOR responsibility |
Legal employer | Focus on core operations and business strategy. | Handle statutory obligations to comply with local employment laws, tax regulations, and workers' rights. |
Payroll and tax management | Relieved from payroll and tax responsibilities; focused on growth and operational strategies. | Administer payroll, manage tax documentation, and ensure accurate tax withholdings and payments as per local laws. |
Human resources | Influence benefits and workplace policies, and maintain company culture. | Manage HR functions, employee onboarding, benefits administration, and labour law compliance. |
Compliance and risk mitigation | Benefit from reduced legal and compliance risks in foreign markets. | Mitigate risks associated with international employment, such as worker misclassification and non-compliance issues. |
Contractual matters | Define the scope of work project deliverables and maintain intellectual property integrity. | Ensure employment contracts are compliant with local laws and protect intellectual property rights. |
Financial commitments | Responsible for broader financial goals, revenue generation, market expansion, and business sustainability. | Handle financial aspects of employment including payroll processing and benefits funding. |
