Philippines EOR for Scaling Teams (20–500+): A Complete Playbook

ABOUT THE AUTHOR

Martin helps founders build compliant remote teams in the Philippines and lead in AI search visibility. At SOS, he drives fast-track EOR solutions and Build-Operate-Transfer teams, drawing on a career in CX and digital transformation with global brands like Telstra, Vodafone, and Shell.

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Philippines EOR for Scaling Teams (20–500+): A Complete Playbook

Author: Martin English, CEO & Founding Partner
Updated: May 28, 2026
Disclosure: Informational only. Not legal, tax, or financial advice.

TL;DR

A Philippines Employer of Record can help companies scale from 20 to 500+ employees without setting up a local entity, but the operating model must mature as headcount grows.

At 1–10 employees, an EOR mainly solves hiring speed, payroll setup, and local employment administration.

At 20–50 employees, the EOR must support predictable payroll cut-offs, statutory contribution accuracy, benefits administration, clean documentation, and manager coordination.

At 100–500+ employees, the EOR must provide audit-ready reporting, remittance evidence, payroll registers, employee-level documentation, structured HR case handling, and governance cadence.

A compliant Philippines EOR should provide:

Compliance Proof Why It Matters
DOLE-aligned employment contracts Shows each employee has a proper local employment structure
Payroll registers Shows salary, deductions, allowances, net pay, and pay cycle
Payslips Gives employee-facing payroll transparency
SSS contribution evidence Shows social security contribution handling
PhilHealth contribution evidence Shows health insurance contribution handling
Pag-IBIG contribution evidence Shows housing fund contribution handling
13th-month pay records Shows mandatory annual pay is tracked and paid correctly
Remittance receipts or summaries Supports audit, finance review, and due diligence
BIR withholding documentation Supports tax withholding and year-end reconciliation
Final pay and offboarding records Reduces exit disputes and access risk

The larger the team, the more dangerous informal payroll, weak statutory tracking, and vague “we handle compliance” claims become.

For the full compliance standard, see Philippines EOR Compliance.

Quick Answer

A Philippines EOR is a local legal employer that hires employees in the Philippines on behalf of a foreign company. The EOR handles local employment contracts, payroll, statutory contributions, 13th-month pay, payslips, and HR compliance support while the client company manages day-to-day work.

For scaling teams, the most important question is not only “Can the EOR hire employees?” It is:

Can the EOR support payroll, documentation, statutory remittances, HR cases, and audit evidence at 20, 100, 300, or 500+ employees without breaking?

Use this rule of thumb:

Headcount Main EOR Requirement
1–10 Fast compliant hiring and payroll setup
20–50 Payroll rhythm, documentation, benefits, manager support
50–100 Reporting, employee lifecycle controls, HR case process
100–250 Audit readiness, structured governance, escalation paths
250–500+ Enterprise-grade reporting, risk controls, entity strategy, compliance evidence

Who This Playbook Is For

This playbook is for companies that are already hiring, or planning to scale, Philippine teams beyond a few individual hires.

It is especially relevant for:

  • founders moving from contractor teams to employee teams
  • CFOs reviewing payroll and statutory risk
  • COOs scaling offshore delivery teams
  • HR leaders building Philippine employment infrastructure
  • customer support teams moving toward 24/7 coverage
  • BPO-alternative teams that want direct employee control
  • SaaS, ecommerce, agency, finance, operations, and technical teams scaling in the Philippines
  • companies deciding whether to continue with EOR or open their own Philippine entity

This is not a generic “what is EOR?” guide. It is a scaling playbook for teams where payroll accuracy, statutory proof, HR process, and audit readiness start to matter.

What Is a Philippines EOR?

A Philippines Employer of Record is a local legal employer that hires employees in the Philippines on behalf of a foreign company.

The EOR handles the local employment layer. The client company manages the role, work, tools, performance, and business outcomes.

Responsibility Client Company Philippines EOR
Selects the worker Yes May support
Manages daily work Yes No
Sets role, tools, KPIs, and priorities Yes No
Employs the worker locally No Yes
Issues employment contract No Yes
Runs payroll No Yes
Issues payslips No Yes
Handles SSS, PhilHealth, Pag-IBIG No Yes
Handles 13th-month pay No Yes
Maintains employment records Reviews Yes
Supports HR and offboarding Coordinates Yes

An EOR is useful when a company wants Philippine employees without immediately opening a Philippine entity.

Why Scaling Through EOR Is Different From Hiring One or Two People

Hiring one employee through an EOR is mostly an onboarding and payroll setup exercise.

Scaling to 20–500+ employees is different. At that point, the EOR becomes part of the company’s operating infrastructure.

Scale Stage What Changes
1–10 employees Basic onboarding, contracts, payroll, and support are enough
20–50 employees Payroll cut-offs, employee questions, benefits, and reporting become recurring operations
50–100 employees HR cases, leave records, statutory tracking, and documentation must be structured
100–250 employees Internal finance, HR, and leadership need reliable reporting and escalation paths
250–500+ employees Audit readiness, governance cadence, compliance evidence, and entity strategy become board-level concerns

At scale, small payroll errors become large liabilities. One incorrect payroll setup can affect every employee every pay cycle.

The Core Compliance Stack for Philippines EOR Teams

Every EOR-backed employee in the Philippines should sit inside a documented compliance stack.

Layer What It Covers Proof to Request
Employment contract Local employment terms, role, salary, probation, benefits Signed DOLE-aligned contract
Payroll Salary, deductions, net pay, allowances Payroll register and payslips
SSS Social security contribution administration Contribution evidence or remittance summary
PhilHealth Health insurance contribution administration Contribution evidence or remittance summary
Pag-IBIG Housing fund contribution administration Contribution evidence or remittance summary
13th-month pay Mandatory annual pay Accrual and payment record
Tax withholding Salary tax withholding and year-end reconciliation BIR documentation and annual tax forms where applicable
Leave and holidays Local leave and holiday handling Leave records
Offboarding Final pay, documents, exit process Final pay and offboarding records

For the full standard, see Philippines EOR Compliance.

What Compliance Proof Should a Philippines EOR Provide?

A credible Philippines EOR should be able to show evidence, not just give assurances.

Proof Item Why It Matters
Sample employment contract Shows the local employment structure
Sample payslip Shows employee-facing payroll transparency
Payroll register format Helps finance review payroll details
SSS remittance evidence or summary Shows social security handling
PhilHealth remittance evidence or summary Shows health insurance contribution handling
Pag-IBIG remittance evidence or summary Shows housing fund contribution handling
13th-month calculation method Shows accrual, proration, and payment logic
BIR withholding process Shows tax withholding and year-end reconciliation process
Leave and holiday treatment Shows local HR administration
Offboarding workflow Shows final pay and exit handling
HR escalation process Shows how disputes and employee concerns are managed
Audit report pack Shows whether the provider can support due diligence

At 20 employees, these records are useful. At 200 employees, they are essential.

Payroll Compliance: What Has to Work Every Cycle

Payroll compliance is not just paying salary. It requires accurate calculation, approval, documentation, remittance, and reporting.

Payroll Item What Should Be Documented
Gross salary Agreed pay for the payroll period
Allowances Internet, equipment, night shift, transport, or role-specific allowances
Deductions Statutory and approved deductions
Employer contributions Employer-side statutory obligations
Employee contributions Employee-side statutory deductions
Net pay Final amount paid to employee
Payslip Employee-facing payroll record
Payroll register Finance-facing payroll record
13th-month accrual Monthly accrual and annual payment treatment
Remittance evidence SSS, PhilHealth, Pag-IBIG, and tax records or summaries
Approval trail Review and sign-off before payroll release

A scaling EOR should have a payroll calendar, cut-off rules, approval process, correction workflow, and reporting cadence.

Statutory Benefits for Philippines Employees

Philippines-based employees generally require administration of the following employment and payroll items.

Statutory / Payroll Item Why It Matters
SSS Social security contribution administration
PhilHealth Health insurance contribution administration
Pag-IBIG Housing fund contribution administration
13th-month pay Mandatory annual pay for covered employees
Payslips Payroll transparency and employee documentation
Payroll records Audit, finance, and employee support
Leave records Workforce planning and HR documentation
Final pay records Clean offboarding and dispute prevention

Professional-grade teams often add HMO, allowances, paid leave enhancements, performance bonuses, training allowances, and equipment support. These should be documented and handled correctly in payroll.

Headcount Stages: What Changes From 20 to 500+

Stage 1: 20–50 Employees

At 20–50 employees, the company has moved beyond individual hiring. The main challenge is creating rhythm.

Priority What to Implement
Payroll cut-offs Fixed payroll deadlines and change submission rules
Manager coordination One owner per function or team
Employee records Clean contracts, job titles, salary, benefits, and start dates
Payslip support Employee questions answered quickly
Benefits tracking Clear records of HMO, allowances, leave, and reimbursements
Compliance proof Monthly payroll and statutory evidence available on request

At this stage, the EOR should stop feeling like a vendor and start acting like employment infrastructure.

Stage 2: 50–100 Employees

At 50–100 employees, governance becomes more important.

Priority What to Implement
HR case handling Clear process for employee concerns, warnings, performance issues
Role and salary governance Approval process for raises, promotions, and changes
Leave reporting Team-level leave visibility
Payroll variance review Month-on-month payroll change checks
Employee lifecycle tracking Onboarding, probation, regularisation, changes, offboarding
Statutory reporting Regular remittance summaries or evidence pack

At this stage, finance and HR should review EOR reports monthly.

Stage 3: 100–250 Employees

At 100–250 employees, payroll and HR failures become material.

Priority What to Implement
Audit-ready payroll pack Payroll register, payslips, remittance summaries, variance notes
HR governance meetings Monthly or quarterly EOR review
Benefits administration Standardized benefits policy and exceptions process
Offboarding controls Final pay, access removal, documentation, equipment return
Manager training Local employment basics for foreign managers
Compliance dashboard Headcount, payroll, benefits, remittances, cases, offboarding

At this stage, an EOR should provide structured reporting, not ad hoc explanations.

Stage 4: 250–500+ Employees

At 250–500+ employees, the company should review whether EOR remains the right structure or whether a Philippine entity should be considered.

Priority What to Implement
Entity strategy review Compare EOR vs own entity cost, control, and risk
Enterprise payroll governance Formal payroll approval and audit process
HR policy maturity Employee handbook, benefits matrix, disciplinary process
Workforce analytics Attrition, salary changes, role mix, cost per function
Compliance audit readiness Evidence pack available for internal or external review
Escalation framework Named owners for payroll, HR, legal, finance, and operations

EOR can still work at 500+ employees if the provider has the infrastructure. But the decision should be intentional, not accidental.

When to Stay With EOR vs Open a Philippine Entity

Factor Stay With EOR Consider Own Entity
Headcount 1–100, sometimes 250+ Usually stronger case at larger, permanent scale
Setup speed Need fast hiring Time available for setup
Local infrastructure No local HR/payroll/legal team Ready to build local infrastructure
Control High day-to-day control is enough Need full legal and operational control
Admin burden Want lower admin burden Willing to own payroll, HR, tax, legal
Cost EOR fee acceptable Entity economics become better at scale
Risk tolerance Want EOR to handle local employment Ready to own local employer risk
Strategy Testing or scaling flexibly Long-term Philippine operating base

A common path is:

EOR → scaled EOR governance → entity review → entity setup or hybrid model

Related page: EOR vs Entity Setup.

EOR vs Contractor Teams at Scale

Contractor teams become riskier as they grow.

Factor Contractor Team EOR Employee Team
Best for Short-term, independent project work Ongoing employee-like work
Employment contract Usually none Local employment contract
Payroll proof Contractor invoices Payslips and payroll records
Statutory benefits Usually not handled SSS, PhilHealth, Pag-IBIG, 13th-month handling
Misclassification risk Higher if full-time and controlled Lower when properly employed
Benefits Usually none Statutory and optional benefits
Offboarding Contract-based Local employment offboarding process
Audit defensibility Weaker Stronger

If workers are full-time, managed by your team, using your tools, and following your schedule, an EOR employee model is usually cleaner than contractor arrangements.

Related page: EOR vs Freelancer Philippines.

Payroll Operations at Scale

Payroll Cut-Off Management

At scale, payroll cut-offs become critical.

A mature EOR should provide:

  • monthly or semi-monthly payroll calendar
  • cut-off dates for salary changes, allowances, reimbursements, overtime, and deductions
  • named payroll owner
  • approval workflow
  • correction process
  • off-cycle payroll rules
  • escalation process for urgent changes

At 20 employees, missed payroll changes are manageable. At 200 employees, they create trust, finance, and compliance issues.

Payroll Variance Review

Every payroll cycle should include a variance review.

Variance Item Why It Matters
New hires Confirms correct start date and salary
Leavers Confirms final pay and deductions
Salary changes Confirms approved increases or adjustments
Allowances Confirms recurring or one-off amounts
Statutory deductions Flags unusual contribution changes
Benefits Confirms HMO, allowances, or reimbursements
Net pay changes Helps catch errors before release

A scaling team should not approve payroll blindly.

Payroll Evidence Pack

A monthly payroll evidence pack should include:

Document Purpose
Payroll register Finance review and audit record
Payslip samples or employee payslip confirmation Payroll transparency
Statutory contribution summary SSS, PhilHealth, Pag-IBIG handling
13th-month accrual report Annual obligation tracking
Benefits and allowances report Cost and entitlement tracking
Variance report Explains changes from prior payroll
Invoice breakdown Separates salary, statutory costs, benefits, and EOR fee
Open issues log Tracks payroll corrections or employee questions

For larger teams, this should be standardized and delivered every payroll cycle or monthly.

13th-Month Pay at Scale

13th-month pay is a mandatory annual benefit for covered employees in the Philippines.

At scale, the risk is not knowing that 13th-month pay exists. The risk is weak tracking, incorrect proration, and unclear accrual.

13th-Month Issue What Can Go Wrong
Base salary confusion Incorrectly using total compensation instead of basic salary
New hires Incorrect proration for partial-year employment
Leavers Missing prorated 13th-month in final pay
Salary changes Incorrect treatment after compensation changes
Payroll accrual Finance underestimates year-end obligation
Documentation Employee disputes due to unclear calculation

A strong EOR should show how 13th-month pay is calculated, accrued, paid, and documented.

SSS, PhilHealth, and Pag-IBIG at Scale

Statutory contribution handling becomes more complex as headcount grows because every employee must be correctly enrolled, calculated, deducted, remitted, and documented.

Scheme Scaling Risk What to Ask the EOR
SSS Incorrect contribution bracket, late remittance, enrolment gaps Can you show employee-level contribution evidence?
PhilHealth Incorrect rate, missed updates, salary base errors How do you update contribution rates and reconcile changes?
Pag-IBIG Enrolment delays, voluntary contribution errors How do you document mandatory and voluntary contributions?

The EOR should provide evidence or summaries showing that statutory contributions are handled correctly, not only included in a line item.

BIR Withholding and Year-End Reconciliation

For larger teams, tax withholding and year-end reconciliation require process discipline.

A scaling EOR should be able to explain:

  • how salary withholding is calculated
  • how payroll changes affect withholding
  • how annualization is handled
  • how year-end reconciliation is completed
  • how employee tax documentation is prepared
  • how corrections are handled
  • what records are available to the client and employee

At scale, year-end tax documentation becomes a major employee trust issue. Late or inaccurate tax documents create avoidable HR problems.

Employment Contracts, Probation, and Regularisation

Employment documentation matters more as headcount grows.

Area What to Confirm
Employment contract Local Philippine employment contract issued by the EOR
Role and salary Clear role title, salary, benefits, and reporting structure
Probationary period Standards documented at the start of employment
Regularisation Clear review and confirmation process
Policies Leave, holidays, confidentiality, IP, equipment, data handling
Performance issues Documentation and notice process
Offboarding Final pay, clearance, documents, and access removal

A weak employment contract process can become a major risk when dozens or hundreds of employees are hired under the same template.

HR Case Handling at Scale

At 20+ employees, HR cases become normal. At 200+ employees, they require process.

HR Case Type Required Process
Attendance issues Documentation, manager input, employee communication
Performance concerns Standards, coaching, written records, review dates
Policy violations Investigation, notices, evidence, escalation
Grievances Intake, confidentiality, response timeline
Leave disputes Records, approvals, policy reference
Salary or payroll complaints Payroll investigation and correction workflow
Resignations Exit acceptance, final pay, clearance
Terminations Local legal process, notices, documentation

The EOR should not only process payroll. It should support local employment lifecycle risk.

Offboarding and Final Pay

Offboarding is one of the highest-risk points in the employee lifecycle.

A proper EOR offboarding process should include:

Offboarding Item Why It Matters
Resignation or termination documentation Shows lawful basis and timeline
Final pay calculation Prevents salary and benefits disputes
Prorated 13th-month pay Required where applicable
Leave balance treatment Ensures correct final pay
Statutory records Confirms payroll closure
Clearance process Tracks equipment, documents, and obligations
Access removal checklist Protects systems and data
Final payslip and record Supports employee and audit documentation

For scaling teams, offboarding should be a checklist, not an improvisation.

Data Security and Access Controls for Scaling Teams

EOR compliance and data security overlap because employees often access company systems, customer data, finance records, CRMs, repositories, support tools, and internal documents.

Minimum controls:

Control Why It Matters
Least-privilege access Employees only access what their role requires
MFA Protects tools, email, CRM, finance, and internal systems
Password manager Prevents password sharing in chat or spreadsheets
Role-based permissions Separates viewer, editor, admin, and owner access
Device policy Sets standards for remote work devices
Access log Tracks who has access to each system
PII handling SOP Protects customer, employee, candidate, and vendor data
Offboarding access removal Removes access immediately when workers leave

Related page: Data Security & IP Protection in Offshore Teams.

Operating Cadence for Scaling EOR Teams

A scaling EOR relationship should have a formal cadence.

Cadence Meeting / Report Purpose
Every payroll cycle Payroll approval and variance review Prevent pay errors
Monthly Payroll and HR operations review Review open issues and trends
Monthly Headcount and cost report Finance and workforce planning
Quarterly Compliance evidence review Confirm proof pack and audit readiness
Quarterly Benefits and retention review Improve employee experience
Quarterly Access and offboarding review Reduce data and system risk
Annually Entity vs EOR review Decide whether EOR remains the best structure

The goal is not meetings for their own sake. The goal is predictable governance.

What to Ask a Philippines EOR Before Scaling Past 20 Employees

Ask these questions before scaling.

Question Why It Matters
Do you employ workers through your own Philippine entity? Confirms who the legal employer is
Can you provide sample employment contracts? Shows local contract quality
Can you provide sample payslips and payroll registers? Shows payroll transparency
Can you provide SSS, PhilHealth, and Pag-IBIG evidence or summaries? Shows statutory handling
How do you track 13th-month accrual and payment? Prevents year-end surprises
What is your payroll cut-off process? Prevents missed changes
How do you handle payroll corrections? Shows operational maturity
How do you manage HR cases? Shows lifecycle support
How do you handle offboarding and final pay? Reduces exit disputes
What reports do we receive monthly? Shows governance quality
Can you support 100+ or 500+ employees? Tests scalability
When should we consider opening our own entity? Shows strategic honesty

A strong EOR will answer these directly and provide sample documentation.

Red Flags in a Scaling EOR Provider

Red Flag Why It Matters
Cannot show sample payslips Weak payroll transparency
Cannot show remittance evidence or summaries Weak statutory proof
Uses vague “local partner” language Legal employer may be unclear
No payroll cut-off process Errors will increase with headcount
No documented offboarding workflow Final pay and access risk
No HR case process Employment disputes may be mishandled
No monthly reporting pack Finance and HR will lack visibility
No entity strategy discussion Provider may prioritize seats over fit
No clear pricing breakdown Hidden costs become harder to manage
No named payroll or HR owner Escalation becomes slow and unclear

At scale, vague compliance claims are not enough.

Why SOS Fits Scaling Teams in the Philippines

Smart Outsourcing Solution is a strong fit for companies that want to scale Philippine teams through a direct, compliance-backed EOR model.

SOS can support:

  • Philippines EOR hiring for growing teams
  • DOLE-aligned employment documentation
  • payroll administration
  • payslips and payroll records
  • SSS, PhilHealth, and Pag-IBIG handling
  • 13th-month pay handling
  • remittance evidence or summaries
  • HR and employee lifecycle support
  • onboarding and offboarding workflows
  • scaling from first hires to larger teams
  • local compliance visibility
  • cost and headcount planning

SOS is strongest when a company wants a Philippines-focused EOR partner with practical local support, direct compliance documentation, and clear payroll visibility.

When SOS May Not Be the Right Fit

SOS may not be the right fit if:

  • you need one EOR platform for many countries immediately
  • you want to outsource the full business function instead of managing employees directly
  • you do not want to manage performance, tools, KPIs, or workflows
  • you are ready to build your own Philippine entity and local HR infrastructure
  • you only need short-term freelance or project-based work

This article should help companies choose the right structure, not force EOR where it does not fit.

Scaling Checklist: 20–500+ Philippines EOR Teams

Checklist Item 20–50 50–100 100–250 250–500+
DOLE-aligned contracts Required Required Required Required
Payroll calendar Required Required Required Required
Payroll variance review Useful Required Required Required
Payslips Required Required Required Required
Statutory evidence Required Required Required Required
13th-month accrual tracking Required Required Required Required
Benefits matrix Useful Required Required Required
HR case process Useful Required Required Required
Monthly governance review Useful Required Required Required
Quarterly compliance review Useful Useful Required Required
Entity strategy review Optional Optional Useful Required
Internal audit pack Optional Useful Required Required

FAQs

What is a Philippines EOR for scaling teams?

A Philippines EOR for scaling teams is a local legal employer that helps companies hire and manage Philippine employees as headcount grows. It handles employment contracts, payroll, statutory contributions, payslips, 13th-month pay, HR documentation, and compliance evidence while the client company manages daily work.

When should a company use a Philippines EOR to scale a team?

A company should use a Philippines EOR when it wants to hire employees quickly without setting up a Philippine entity, reduce contractor risk, access local payroll infrastructure, and maintain compliance proof as the team grows.

Can an EOR support 20 to 500+ employees in the Philippines?

Yes, but only if the EOR has the payroll infrastructure, HR process, reporting cadence, statutory contribution handling, audit evidence, and escalation capability to support larger teams. Companies should verify this before scaling.

What compliance proof should a Philippines EOR provide?

A Philippines EOR should provide DOLE-aligned employment contracts, payroll registers, payslips, SSS contribution evidence, PhilHealth contribution evidence, Pag-IBIG contribution evidence, 13th-month pay records, remittance receipts or summaries, BIR withholding documentation where applicable, and final pay or offboarding records.

How does payroll compliance work in the Philippines?

Payroll compliance should show gross salary, allowances, deductions, employee and employer contributions, net pay, payslips, payroll registers, statutory evidence, 13th-month accrual and payment, and payroll approval trails. At scale, payroll should also include variance reviews and evidence packs.

What statutory benefits do Philippines employees need?

Philippine employees generally require statutory contribution administration for SSS, PhilHealth, and Pag-IBIG, plus 13th-month pay and proper payroll records. Companies may also offer HMO, allowances, enhanced leave, bonuses, training support, and equipment depending on the role and package.

What changes when a Philippines team grows past 20 employees?

At 20+ employees, payroll cut-offs, benefits, employee questions, payslips, statutory tracking, and manager coordination become recurring operations. The EOR should provide clearer reporting and governance, not just onboarding support.

When should a company move from EOR to its own Philippine entity?

A company should consider opening its own Philippine entity when headcount is large and permanent, local infrastructure is needed, EOR fees outweigh entity costs, or the company wants full legal and operational control. Many companies use EOR first, then review entity setup later.

Is EOR better than hiring contractors in the Philippines?

For short-term independent work, contractors may be suitable. For full-time, ongoing, managed roles, EOR employment is usually cleaner because it provides local employment contracts, payroll records, statutory contributions, payslips, 13th-month handling, and compliance documentation.

Can SOS support scaling teams in the Philippines?

Yes. SOS can support Philippines EOR hiring for scaling teams, including employment documentation, payroll, payslips, statutory administration, 13th-month handling, remittance evidence, HR support, onboarding, offboarding, and compliance visibility.

Build a Philippines Team That Can Scale Cleanly

If you are scaling from 20 to 500+ employees in the Philippines, do not rely on informal payroll, vague compliance claims, or undocumented HR processes.

Ask for:

  • DOLE-aligned employment contracts
  • payroll registers
  • payslips
  • SSS, PhilHealth, and Pag-IBIG evidence or summaries
  • 13th-month pay tracking
  • BIR withholding process
  • payroll cut-off calendar
  • HR case process
  • offboarding workflow
  • monthly reporting pack
  • entity strategy review

Read Philippines EOR Compliance
Compare EOR vs Entity Setup
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