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Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

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Agent of record

Who’s the agent of record in employment?

An agent of record (AOR) is an individual or entity that’s authorized to act on behalf of another party, particularly in the contexts of insurance, finance, or hiring. This means they use their expertise to manage policies and make decisions.

Within employment, AORs handle all the administration involved with hiring and paying independent contractors. They also take full liability for these processes so that companies don’t have to worry about risks when recruiting internationally. An AOR will stay up-to-date with the intricacies of worker classification in various states and countries and ensure compliance with evolving laws and regulations.

While an agent of record can sound similar to an employer of record (EOR), the key difference is that while an AOR acts as an intermediary between the organization and contractor, an EOR assumes full employer responsibilities for the workers. An AOR will manage the payment process and financial transactions on behalf of an organization while an EOR handles payroll, benefits, and tax compliance for employees directly.

This difference means that organizations typically use EORs to hire full or part time employees and AORs to manage independent contractors. Multiplier offers both an AOR and an EOR solution.

Ready to take the leap? Choose Multiplier as your EOR partner

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