Previous-Arachnid846

joined 10 months ago
[–] Previous-Arachnid846@alien.top 1 points 10 months ago

An EOR is likely not the best fit, unless your business is doing truly really well and are ready for the obligations of having employees. First of all, unless your new freelancing effort is going extremely well, you credit risk profile will likely mean most EORs will likely require you to pay a deposit for the employee equal to at least 1 month, and likely several, of the total cost of employment (salary + employer taxes + EOR management fee). You would still be required to pay any severance if required at separation, provide PTO (payout the PTO when the employee resigns in most countries in Europe), etc. Of course you could incorporate your own foreign entity (quite expensive) or do a non-residential payroll system, but non-residential payroll is also quite burdensome, even if it is substantially less expensive. Of course all of these involve paying employer taxes and contributions.

There are some countries, like Armenia, which have very low employer taxes and contributions, but in most cases you will need to stay with contractors if you want to not pay employer taxes.