Employees will be able to work anywhere

Employees will be able to work anywhere

Employees will be able to work anywhere

Benefits every employer should know about EOR
Spotify announced a model that will allow its 6,550 global employees to work from any location they choose.

In an office, home, local coworking spaces or digital nomad villages around the globe; no matter where: Employees will be able to work everywhere.

Spotify’s move is in step with several technology companies that plan to keep some of the new ways of working that have emerged during the COVID-19 pandemic.

With work shifting to cloud-based systems and people tuning into meetings online, offices have adapted a remote working lifestyle as vaccine inoculations could still take the better half of the year to complete.

The company said the new model, which also lets employees choose the country and city where they work.

In a blog post, Spotify said it is rethinking its workplaces worldwide to increase “sustainability, flexibility, and well-being” for its employees.

“The ultimate goal of our new design approach is to ensure that employees have a place where they can focus, collaborate and create — whether that’s at a desk, in a conference room or in cafe spaces,” the company said.

In the blog, Spotify explained that the COVID-19 pandemic was “a litmus test of our culture and values” that accelerated its views on remote work. As a result, the company came to the following conclusions:


  • Work is something employees do, not something they come to the office for
  • Remote work options boost employee effectiveness
  • Flexibility supports employee work-life balance, helps retain talent and expands recruiting pools
  • Distributed employees are more productive and more collaborative than office-based workers

As Spotify we believe in these conclusions, that’s why we work every day so that companies can hire employees without the need to be physically in the same place and complying with all legal requirements. Do you want to know more? Contact us here

When should we use an EOR?

When should we use an EOR?

When should we use an EOR?

Benefits every employer should know about EOR
Here 3 signs to let you know your company is in need of one

While the global pandemic has hit businesses hard across industries, interestingly, the trend of starting new businesses has increased regardless of all the uncertainty.

How do you hire remote talent internationally in a smart way?

The general rule is that if you want to hire a full-time employee in another country than your company’s place of incorporation, you need to first set up a legal entity in that other country before you can do that. Your operations will then fall under the country’s local regulations such as employment law and sales tax; note that these will affect your ability to conduct business. If you don’t want to or have the capability to do that, your options are pretty much limited to either hiring independent contractors or an EOR.


Independent Contractors

This is perhaps the most common way for a company to hire international workforce. It’s certainly the fastest and most economical way of doing things. You, as the company, sign an agreement with the individual you want to hire, wire them money as mutually agreed and the contractor shall sort out all the local regulatory aspects themselves.



Employer of Record or EOR is a third party provider that helps companies to employ legal, full-time workers in a different country, state or province. If hiring independent contractors isn’t your game and setting up an entity isn’t timely right now, hiring through a EOR might be your best option – or in most countries, the only option.

EOR’s main function is to serve as a legal entity where you don’t have one. Think of it like a compliant vehicle through which you can do your hiring in a legal way. Some EORs also cover payroll and HR functions but not all, these are mainly in the hands of PEOs (Professional Employment Organizations). There is a difference.

In this case, who is your employee really working for? Legally speaking, your employee is working for the EOR in their local region; but in every meaningful sense, they’d be working for you.


So, the question you are probably thinking is: when should we use an EOR? Here 3 signs to let you know:

1. New foreign market

When your Company is new to a foreign market and not prepared to make commitment of opening a branch office just for employers purposes.

2. Unfamiliar employment law

The foreign country has complex and unusual laws that are unfamiliar to your HR department.

3. Don´t want to hire as a full time employee

In the case you have found a worker, but don´t want to bring them on as a full time employee.

Is your Company dealing with any of these situations? Then, an EOR can be especially beneficial for you, contact us and we can help you and your business:
Contact Our Advisors here

How to calculate your annual income

How to calculate your annual income

How to calculate your annual income

Benefits every employer should know about EOR
In this article, we discuss what annual income is, what it includes and how to calculate your annual salary and income using simple calculations.

What is annual income?

Annual income is the total income that you earn over one year. A calendar year is January 1st to December 31st of the same year. The U.S. Federal Government defines a fiscal year as starting on October 1st and ending on September 30th of the following year. The majority of annual income calculations rely on the fiscal year calculation.


What does annual income include?

Annual income includes a variety of types of income. Here are the various types of you can include as your annual income:

Salary and employment income: Employment income includes your salary, paid wages, overtime pay, tips and bonuses before deductions. All the income that you generate through the work you do throughout the year is part of your annual income.

Social security and pensions: Your annual income includes any money you receive from social security and pensions. Social security and pensions are reserved for retirees, disabled workers and the families of retired, deceased or disabled workers.

Welfare and disability assistance: Welfare and disability assistance includes any money that you receive from the government that ensures that basic human needs can be met. Your annual income includes any government assistance.

Gained interest and income from investments: Making income from the sale of stocks, properties or other income-generating investments is included in annual income. Your yearly income also includes any interest gained from savings accounts.


How to calculate annual income

While some parts of your annual income will be easy to calculate with simple addition, other income will take some extra calculations. If you start a new job part-way through the year, you have yet to work for an entire year at your new job, and you must calculate to estimate your yearly income. Here is how to calculate your annual income.

Make a list of all income sources
Write a list of all the types of income from the list above that you are receiving income from. Be sure to include how much you make from each source

Calculate all yearly income
You can add together any income that you have a full year of history for.

Calculate all monthly income
Any new income that you receive monthly but haven’t yet reached a full year of income requires a simple calculation. To find your estimated annual income, multiply your monthly income by 12 since there are twelve months in a year.

Calculate all hourly wage income
For income that you receive from employment that began less than a month ago, you can use a calculation based on your hourly wage and weekly work hours.

Calculate all hourly income
Using your hourly wage, you can then determine your annual employment income

Calculate final annual income
The final step is adding your yearly, monthly and hourly income calculations together to get your annual income.


5 tips to be aware of before you hire employees

Not every month is the same to look for and find a job. In this article we explain why a good season to do it begins.

5 benefits of hiring Latin American talent

Hiring Latin American talent offers some advantages when compared to other parts of the world.

How do I attract quality employees?

Finding good employees is essential. But it is not always so easy. Here are some ideas.

The hidden costs of hiring an employee

In addition to salary, there are many things to consider when you incorporate a new person into the company.

Employee retention matters

It’s no secret that retaining top talent is key to promoting organizational growth. Recruiting and retaining new employees is expensive and time consuming.

Changes in the way of working and hiring

Americans quit jobs at a record pace during the second half of 2021, and more plan to resign in the new year. How can companies take advantage of this situation and seduce employees?

Hiring international workers?

Roots EOR makes it simple! Let’s look at the following article!

Can a US company hire a Canadian citizen?

A guide for hiring remote workers in this country

3 tips for recruiting abroad

In this article, we’ll review the aspects every employer looks at. You can consider highlighting these skills in your resume and interviews:

10 qualities that employers look for

In this article, we’ll review the aspects every employer looks at. You can consider highlighting these skills in your resume and interviews:

5 most frequently asked questions about EOR

5 most frequently asked questions about EOR

5 most frequently asked questions about EOR

Benefits every employer should know about EOR
If you are thinking of hiring employees, this article could help you. Let´s get started!


1. How can we engage a worker in a country where my business has no presence or establishment?

In countries where your company does not have a business entity, you can still legally employ local workers. Our clients do not have to form a local entity. That is one of the core benefits of our EOR service


2. Will we need to set up bank accounts in the country we wish to engage a worker in?

No, foreign banking facilities and local funds are not required. We manage the foreign payments in the local currency, and then invoice the client in GBP, Euros or USD. However, in most countries, the worker being paid will need to have an in-country bank account to receive funds in the local currency.


3. How can I pay my foreign worker compliantly?

Through our employer of record service, we are responsible for managing payroll compliance and ensuring both the worker, the social security office and the local tax authorities are paid correctly and on time. All you need to do is to agree what to pay the worker, have them sign the approved in-country worker contract, adhere to the agreed upon payroll schedule and leave the rest to us.


4. How do we know what benefits we have to provide for the worker?

The laws on benefit provisions are completely unique to each country. By becoming the employer of record, become responsible for ensuring all statutory benefits are provided to the worker.


5. What type of employment contract should I be providing to the worker?

The type of employment contract you offer the worker will typically depend on the reason you wish to engage them. Depending upon what is legally acceptable in country, we offer clients the flexibility of multiple contract types, from short-term project-based to indefinite long term workers. We work with each individual client to understand their needs and guide them to the most appropriate solution.

Want to know more about EOR service? Contact Our Advisors here

The hidden costs of onboarding a new employee

The hidden costs of onboarding a new employee

The hidden costs of onboarding a new employee

Benefits every employer should know about EOR
Salary is only one component of the cost of expanding your team. Before you post that job opening, you might take into account theses costs. rs.


It can take a new employee quite a while to get comfortable in their role and achieve full productivity. A study from Mellon Financial Corp. found that it takes an average of 8 to 20 weeks for new hires to reach full productivity. And while you’re working on onboarding and training a new employee, your productivity suffers too. The same study estimated that loss of productivity costs between 1% and 2.5% of total revenues.


Travel & Relocation Expenses

What happens when you can’t find the person you need to hire in your geographic location? You might be able to fill the role with a remote worker, but when physical presence is essential and that’s expensive.

Relocating an employee can include costs such as:

  • Travel costs for in-person interviews and home-finding trips
  • Assistance in selling a home and finding a new one
  • Moving and transporting household goods
  • Temporary housing
  • Employment assistance for an accompanying spouse


Payroll Taxes

After salary, one of the most significant costs of bringing on a new employee is payroll taxes.

The U.S. federal payroll tax, also known as FICA, includes Social Security and Medicare taxes paid by employers. Currently, the FICA tax rate for employers is 6.2% of wages for Social Security and 1.45% for Medicare. This can vary from country to country, but no matter where you company is, you have a lot of money to spend in payrolls. Even more, you need to know what to pay, how and this can take a lot of, not only money, but also time.



Will you offer benefits to your new employee?
The cost of offering employee benefits varies widely depending on the types of benefits offered and the employer’s level of contribution to things like health insurance premiums and retirement accounts. Human resources and payroll service company Paycor estimates the cost of employee benefits to run up to 30% of overall labor costs.


Office Space & Equipment

Where will your new employee work? Depending on the type of work they’ll be doing, you may need to provide office space for them to do it.

These costs are tough to estimate since the cost of office rent can vary widely depending on location, office size, and amenities.

You also need to outfit the office with a desk, chair, computer, phone, and other equipment and supplies. Again, the final cost depends on the size of the space you need to fill and the quality of the furnishings you purchase.


One more thing: Don’t think you can avoid these costs entirely by having your employee work out of a home office. While you can avoid overhead costs such as office rent and utilities, more employers today are reimbursing employees for some of their home office expenses. In some states, it’s mandatory. For example, in California, employers must either provide remote employees with the tools necessary to perform their work or reimburse them for these tools.

As you can see, the real cost of hiring an employee is difficult to calculate. But don’t let these numbers dissuade you from expanding your team when the time is right. To grow your business, at some point, you need to get the right team in place and start delegating tasks.


If your company wants to hire more workers, unless you are prepared for the time and costs, you may consider the option of an EOR (Employer of record). Contact us here