Employer of Record (EOR) and Remote Teams – FAQs for Global Hiring

Fast, Compliant Global Hiring — No Entity Required

From just $190 per head monthly, Smart Outsourcing Solution delivers compliant Employer of Record (EOR) services that streamline hiring, payroll, and legal admin. Scalable plans adapt to your team’s growth, which are ideal for startups and global businesses needing fast, cost-efficient workforce expansion.

Whether you’re building a dev team, scaling customer support, or onboarding virtual assistants, EORs help you hire compliantly, quickly, and cost-effectively—without opening a local entity.

FAQs – Employer of Record (EOR) & Remote Hiring

Employer of Record (EOR) & Global Hiring

What is an Employer of Record and how does it work?

 An Employer of Record (EOR) is a third-party that legally hires employees for your company in another country. It handles payroll, compliance, taxes, and employment contracts while you manage the team’s tasks and performance.

Is hiring through an EOR legal and compliant in the Philippines?

 Yes. EOR providers ensure compliance with local labour laws, including tax registration, mandatory benefits, and employment contracts. It’s a legally recognised model for companies without a local entity.

How can I hire in the Philippines without opening a local entity?

 Partnering with an EOR lets you legally hire and manage workers in the Philippines without registering a local business. The EOR becomes the legal employer, ensuring compliance and simplified global payroll.

Will using an EOR trigger permanent establishment risk?

Generally, no. An EOR helps avoid permanent establishment (PE) by acting as the legal employer. However, PE risk may arise if you direct core operations locally—consult your tax advisor to assess exposure.

What’s the difference between a PEO and an EOR?

 A PEO co-employs your staff in your home country, while an EOR becomes the sole legal employer in a foreign jurisdiction. EORs are ideal for hiring abroad without setting up a company.

How long does it take to hire through an EOR?

 It typically takes 5–10 business days. The EOR manages onboarding, documentation, contract compliance, and payroll setup while you focus on interviewing and choosing the right candidate.

What happens if I need to terminate an EOR-hired employee?

 The EOR handles the termination in line with local labour laws, including severance, notice periods, and legal filings. You provide the rationale, and the EOR executes the compliant offboarding process.

What are the risks or downsides of the EOR model?

 Limitations may include less control over contracts, fixed processes for benefits, and slightly higher costs. However, the trade-off is faster market entry and reduced legal risk.

How much does an Employer of Record cost?

Smart Outsourcing Solution offers affordable Employer of Record (EOR) services starting at just $190 per head per month. Our flexible plans scale with your team size and compliance needs, providing a cost-effective solution for global hiring, payroll, and legal workforce management.

Virtual Assistants & Offshore Talent

How do I hire a virtual assistant in the Philippines quickly?

 You can hire a Filipino VA within 3–5 business days through pre-vetted talent pools. The process includes candidate matching, interviews, and EOR-compliant onboarding with local payroll and contracts.

What tasks can a Filipino virtual assistant handle?

Filipino VAs manage inboxes, schedules, data entry, research, CRM updates, social media, and support tasks. Many also specialise in eCommerce, real estate, SaaS, or digital marketing workflows.

What’s the average cost of a Filipino virtual assistant in 2025?

Rates range from $700 to $1,400/month for full-time VAs, depending on skill level, time zone alignment, and language proficiency. Specialists like SEO managers or bookkeepers may cost more.

Can I hire part-time or project-based virtual assistants?

Yes. Part-time and project-based models are available with flexible hours, ranging from 10–30 hours per week. These options are ideal for startups, agencies, and short-term campaigns.

What tools and security measures do offshore VAs use?

 Most VAs use cloud tools like Google Workspace, Slack, CRMs, and project boards. Security is enforced via password managers, VPNs, time trackers, and device policies based on client needs.

Who handles payroll and taxes for my Philippine remote team?

 The EOR manages all statutory payroll processes: tax deductions, government contributions (SSS, PhilHealth, Pag-IBIG), payslips, and legal remittances. You receive a monthly invoice in your currency.

What shift coverage can Filipino VAs provide?

Filipino VAs are flexible across global time zones—US, UK, EU, or AU. Many prefer night shifts and can provide 24/7 coverage for customer support, marketing ops, or admin roles.

Hiring Developers & Protecting IP

How can I hire senior developers in the Philippines?

You can source skilled developers via EOR partners who pre-screen talent in React, Node, Python, and more. Most have strong English skills and experience working with global startups.

What’s the average salary for a Filipino React or Node developer?

 Salaries range from $1,200 to $2,600/month depending on experience, tech stack, and shift. Developers with 5+ years of experience or full-stack roles may earn more.

How do I protect my code and IP when hiring developers abroad?

 Use NDAs, IP assignment agreements, and secure systems. EOR contracts include clauses that transfer IP ownership to you and require developers to follow your data security protocols.

Will my IP be protected if I use an EOR?

 Yes. The EOR signs enforceable contracts in the developer’s country that include IP protection and confidentiality clauses aligned with your jurisdiction’s legal standards.

Can I transfer EOR developers to my own entity later?

 Yes. Most EORs support transitions. When you’re ready to open a local entity, developers can be rehired under your business with full documentation and compliance handover.

Payroll, Benefits & Local Compliance

What benefits are mandatory for employees in the Philippines?

 Employees are entitled to SSS, PhilHealth, and Pag-IBIG contributions, 13th-month pay, paid leave, and holiday pay. These are mandatory and fully managed under EOR arrangements.

Can a Philippine-based bookkeeper follow US, UK, or AU standards?

 Yes. Many bookkeepers are trained in QuickBooks, Xero, and global accounting practices like GAAP or IFRS. You can request experience with local tax systems and reporting standards.

How do I keep financial data secure when outsourcing?


Use secure cloud tools with role-based access, encrypted storage, and compliance protocols like SOC2 or GDPR. Vetted offshore teams follow strict confidentiality and endpoint protection standards.

Who pays the remote team—me or the provider?

 

 You pay the EOR or outsourcing partner a single monthly invoice. They handle local payroll processing, tax compliance, benefits, and employee support on your behalf.

Start Building Your Remote Team—Without Legal Roadblocks

From virtual assistants to developers, we help you hire top-tier Filipino talent compliantly and fast.

Speak with our EOR experts and start building your global remote team today.