New ways of working, new fraud

New ways of working, new fraud

New ways of working, new fraud

Remote work brought new ways of carrying out illegal operations. Find out one of the most common when hiring an EOR

Fraud

Surely you have heard of mini umbrella company fraud, but do you know what it is?

What is a mini umbrella company fraud?

It is one of the fraud primarily on HMRC, the UK’s tax, payments and customs authority, wrongly exploiting certain VAT employment allowance schemes intended for smaller businesses.

It again has a broader spread of victims than just HMRC: the end individual workers are sold short on contributions not being made, and small businesses who follow the rules are not competing on a level playing field.

There is no “standard” mini umbrella company fraud model. The structure is constantly evolving as organised criminals try to conceal their fraudulent activities from HMRC.

In short: it involves multiple limited companies being created that employ a small number of temporary workers. These companies are primarily set up to enable fraud. The structure of mini umbrella companies is facilitated by a promoter business (or an outsourcing business – the “umbrella”) and they may have other linked businesses to support the operation.

The impact

Mini umbrella company fraud creates issues for employment agencies and businesses that follow the rules.

avoid fraud

Do you want to make sure you avoid this type of fraud when hiring your employees?  Contact uswe are aware of the risks and comply with all the requirements!

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Changes in the way of working and hiring

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?

5 benefits of hiring Latin American talent

5 benefits of hiring Latin American talent

5 benefits of hiring employees from Latam

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

LATAM employees

Asia, Africa and Latin America are common destinations to find new talents. Hiring professionals from other countries enhances the company culture and opens up the company to diversity, helping to create a workplace set to innovation.

Let’s see 5 benefits:

Lower cultural barrier

American countries share more than a territory in common, but also a similar cultural background that makes it easier to integrate the foreign members of the team.

Closer time-zone

While it can be very difficult to work synchronously from Africa or Asia, in America the time-zone difference is almost zero.

Cost-effectiveness

The average wage for highly skilled talent in the region tends to be lower than in the U.S., which makes these talents more accessible for companies.

Strong tech environment in Latam

Latin America is a very fertile region for tech businesses and startups. The region has several tech hubs, especially in Brazil, Chile, Mexico and Colombia.

It is also the home of some of the world’s most successful startups, scaleups and unicorns, like Nubank, Rappi, Ifood, 99, NotCo, Kavak and many others.

Remote-first brings flexibility

The pandemic has shown that remote work can be great in different contexts, and, if done well, it can be better than in person work itself.

If you plan to hire staff from abroad, offering a flexible work arrangement can shorten your hiring process and allow the talents to start working immediately.

Employees won’t necessarily have to move from their countries, but beware to create a remote-first environment, otherwise their employee experience can be seriously damaged.

hire latam employees

You have a company and you want to start taking advantage of the benefits of hiring LATAM employees: Contact us

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Employer of Record in Argentina

Employer of Record in Argentina

Argentina is a viable option for companies looking to hire remote teams. EOR ROOTS simplifies the process of Employment in this country. Want to know more about us? Let´s get started!

Frequently asked questions about EOR (Part I)

Frequently asked questions about EOR (Part I)

Frequently asked questions about EOR (Part I)

More and more companies are hiring us, but at the same time there are more and more doubts. We invite you to read the first questions. We will answer more in the next days, so: stay tuned!

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1. Are you an international PEO?

Professional Employment Organizations (PEOs) provide their services in most cases by co- employing the workers with their clients. Co-employment does not exist in an identical format outside of the US. Our EOR service is designed exclusively for companies with the need to hire employees outside of the US. So, while the service is modeled after PEOs in the US and does provide many of the same benefits of a PEO, we are not an international PEO.

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

We can employ foreign workers in many countries on our client’s behalf. This means that 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 delivery mode.

3. 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.

4. How do we know what benefits we must 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. In addition, we can offer clients insights into what is customary in each country and in many cases, will provide referrals to benefit experts who design supplemental packages, if desired. Our clients find that this is a great way to help workers feel unaffected by the alternative arrangement, which results in higher worker retention.

5. How can I pay my foreign worker compliantly?

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.

Do you still have doubts?

With our services our clients no longer need to own a local entity to employ talent compliantly. We offer the most cost-effective way of growing internationally while maintaining legal compliance within the countries your experts work in. Contact us

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What an Employer of Record can do for your business?

What an Employer of Record can do for your business?

Here are some of the key benefits of using an EOR while hiring workers overseas. If you do decide to work with an EOR, you can count on your service provider to take care of all the formal employment tasks and liabilities on your behalf.

Frequently asked questions about EOR (Part II)

Frequently asked questions about EOR (Part II)

Although more and more companies use this method of contracting, there are still unresolved questions. We already answered some in our blog, but we were left with some important ones without doing it.

A new way to hire

A new way to hire

A new way to hire

Work changed, it’s time to change the way we employ people too.

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Over the past year, we saw more workers going remote and more collaboration happening online, changing not just work but hiring forever.

It’s no wonder that the world’s top companies now recognize global hiring as a business advantage and opportunity, allowing them to gain insights into new markets and greater diversity in ideas. Additionally, international hiring helps solve challenges around finding the right talent and retaining talent among the growing number of workers who wish to relocate. But it’s not without risks and complexity, which have long created barriers to entry for recruitment teams who want to hire across borders.

So, what is a hiring manager to do? In many hiring scenarios, the most straightforward approach is working with an employer of record.

Why use an Employer of Record (EOR)?

Most recruiters have experienced the pain of finding the perfect candidate for a role, only to turn them down because of the country where they reside. Employers of record provide the solution to this problem.

 

What is an Employer of Record (EOR)?

An employer of record is simply an entity through which you can legally employ your dream hires, regardless of where they live. Do you know about us? https://rootseor.com/ . EOR Roots acts as the worker’s employer on paper, but effectively, your hire will work for your business just like anyone else on your team.

We will typically manage hiring, compliance, payroll, benefits, and more for your foreign employees, thereby eliminating much of the cost and complication from the process of global hiring.

Why businesses need us?

The reality is that most companies don’t have the resources or expertise needed to make global hiring work, and mistakes can come with considerable risks.

For companies with the resources, opening an entity may not be the best use of their time or money. Partnering with us. Roots EOR, is often faster and more cost effective. Reducing cost and complications of global hiring are advantages of EORs, but far from the only ones. Hiring managers also need to be mindful of the risks of misclassifying workers or running astray of labor laws in the foreign countries.

hire best talents everywhere

Fortunately, by working with Roots EOR; businesses can tap into the expertise of employment lawyers and business experts whose entire focus is getting global hiring right. This means that internal talent specialists can focus on doing what they do best, like attracting and retaining the right talent on their teams. Not struggling to keep up with changing laws in multiple countries. Want to Contact us?

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What an Employer of Record can do for your business?

What an Employer of Record can do for your business?

Here are some of the key benefits of using an EOR while hiring workers overseas. If you do decide to work with an EOR, you can count on your service provider to take care of all the formal employment tasks and liabilities on your behalf.

Frequently asked questions about EOR (Part II)

Frequently asked questions about EOR (Part II)

Although more and more companies use this method of contracting, there are still unresolved questions. We already answered some in our blog, but we were left with some important ones without doing it.

What is an Employer of Record?

What is an Employer of Record?

What is an Employer of Record?

The solution to hire people from all over the world. Do not miss this article!

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What is a Employer of Record (EOR)?

Employer of Record is a company that takes on all employer-related responsibilities for small to large enterprise-sized businesses. The Employer of Record handles state-specific onboarding, payroll, taxes, payroll compliance, benefits administration, unemployment claim reporting, and other HR-related tasks.

Some important things to have in mind…

1. Full legal employer: An Employer of Record is liable for all employer-related responsibilities—from benefits and payroll to insurance and taxes. Working with an Employer of Record allows you to focus strictly on day-to-day oversight of your workforce.

2. State registration not required: With an Employer of Record partner, your company can expand its talent pool and compliantly recruit talent in any state—without going through the time-consuming business registration process.

3. Compliant, cost-effective benefits: When you bring on talent in new markets, your Employer of Record partner ensures you provide benefits that adhere to local regulations. An Employer of Record pools your talent with workforces from other companies, so you get access to lower-priced group rates from insurance providers.

 

What is a Professional Employer Organization (PEO)?

A PEO is a company that partners with small and medium-sized businesses to provide comprehensive HR services, including payroll processing, benefits administration, regulatory compliance, tax filings, and more. A PEO acts as a company’s outsourced HR department so internal teams can focus on their core responsibilities.

Some important things to have in mind…

1. Co-employment: When your company partners with a PEO, you are both legal employers of your workforce. However, you remain responsible for the day-to-day oversight of your talent.

2. State registration typically required: Working with a PEO usually means you must register your business in every state in which you hire.  As a result, it makes the most sense to partner with a PEO when you plan to hire in states where you’ve already registered your business.

3. Boosted benefits packages: A PEO helps small and medium-sized businesses provide the same robust employee benefits plans offered by larger companies. Like an Employer of Record, a PEO partner pools your employees with those from other organizations to qualify for more favorable group rates from insurance companies.

The critical difference between an Employer of Record and a PEO: An Employer of Record is the full legal employer of a company’s distributed workforce, while a PEO remains a co-employer.

If your goal is to quickly and compliantly hire top talent no matter where they’re located, partnering with an Employer of Record gives you the flexibility to easily enter to any country.

Working with an Employer of Record also gives you peace of mind knowing that experts compliantly handle every HR and employer-related responsibility, so your teams can focus on their core responsibilities. As a result, Employer of Record providers reduce the time, hassle, and cost required to build a distributed workforce across the world.

Are you interested in expanding your work team?

Roots EOR brings your company a turn-key solution to allocate staff abroad to be compliant with local labor requirements without forming a local legal structure. Contact Us

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Employee retention matters

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

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?

Changes in the way of working and hiring

Changes in the way of working and hiring

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?

Main post image

Although specialists predict that quitting will continue steadily at similar, elevated rates we’ve seen over the past year, they are not confident that we’ll see another big quitting wave in 2022.
That’s because the tight labor market has pushed companies to offer better benefits and higher salaries, that will keep employee turnover from being “completely rampant” in the months ahead.
What are companies doing to seduce employees?

 

Flexible work arrangements will be the norm, not the exception

The freedom to work from anywhere has become the most sought-after benefit during the pandemic – so much so that people value flexibility as much as a 10% pay raise, according to new research from the WFH Research Project.

More companies will embrace this change to attract and retain talent. Leaders are starting to ask: “How can we give people more power over their schedules? How can we be more flexible?”

Managers that blame external factors for turnover – whether it be government leadership, the pandemic, unemployment benefits or other reasons – and refuse to offer flexible work arrangements will be the “losers who struggle in the wake of the Great Resignation”.

Flexible working culture will lead to better work-life balance and improved mental health for employees. HR leaders know that work will fit around our personal lives rather than our personal lives fitting around work.

 

Remote jobs will become more competitive

As companies struggle to hire in the United States, a growing number of managers could turn to automation and international candidates to fill open roles.

The pandemic accelerated the trend toward automation as companies embraced digital waiters, concierges and other technologies amid social distancing rules and virus fears. In 2020, the World Economic Forum surveyed about 300 global companies and found that 43% of businesses expect to reduce their workforces with new technology.

Economist predicts that companies will make larger investments in robots and artificial intelligence to reduce hiring times and costs even after the pandemic subsides.

 

Those same benefits could push companies to hire more international candidates for remote roles and create even more competition for remote jobs, he adds. In the United States, employees tend to be paid higher wages than people in many other countries. If you’re a remote organization, you can recruit workers from all over the world who can do the same job for a cheaper rate.

Are you ready for your remote work team?

Do you want to know how to hire employees in other parts of the world in a legal, fast and easy way? Contact Us

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Best sites for finding remote work online

Best sites for finding remote work online

Want to work from everywhere? Some years ago, there were a few sites where you could find remote work; today, there are many. We collected some of them for you! Scroll down!