EOR payroll: how payroll works through an employer of record

How payroll works through an EOR

An employer of record (EOR) is the legal employer of the person. So it runs the payroll in its own name, under the rules of the country. Read how an employer of record works.

1. You agree the salaryYou choose the person and agree the gross salary and the benefits with the EOR.
2. The EOR registers as the employerIt signs the employment contract and registers the person with the tax office and the social insurance.
3. The EOR runs each payrollIt works out the net pay, takes out the income tax and the employee's contributions, and pays the salary.
4. The EOR pays the authoritiesIt pays the tax, the employee's contributions and the employer costs, and it files the reports.
5. You pay the EOREach month, you pay the salary, the employer costs and the EOR's fee.

EOR payroll in each of our countries

Each country has its own payroll rules: the registrations, the deadlines and what the employer takes out of the pay. Each country guide explains them, with the sources.

Germany

The employer, or the EOR, takes the employee's income tax (Lohnsteuer) out of each salary payment and pays it to the tax office.Income Tax Act (EStG), section 38, GKV-Spitzenverband, lohn-info.deChecked 1 Oct 2026

United Kingdom

The employer, or the EOR, must register with HMRC before the first payday. It runs the payroll through PAYE: it takes income tax and the employee's National Insurance out of each payment. It reports each payment to HMRC on or before the payday.Register as an employer, Running payroll: reporting to HMRC, HMRC, rates and thresholds for employers 2026 to 2027, Budget 2025, HMRC, pay Apprenticeship LevyChecked 1 Oct 2026

Canada

The employer, or the EOR, takes income tax, CPP contributions and EI premiums out of each payment and sends them to the CRA. A non-resident employer has the same duties to withhold, remit and report as a Canadian employer.CRA, employers' guide T4001, Canada Revenue Agency, CPP rates and maximums, Canada Revenue Agency, EI premium rates and maximums, Revenu Québec, registering for source deductions, Revenu Québec, principal changes for 2026, Ontario, Employer Health Tax, British Columbia, Employer Health Tax, Revenu Québec, total payroll for the Health Services Fund, Revenu Québec, workforce skills development, Alberta, moving to AlbertaChecked 1 Oct 2026

India

Since 1 April 2026, the Income-tax Act, 2025 applies. The employer, or the EOR, takes income tax out of the salary at the employee's average rate. It needs a tax deduction account number (TAN).Income-tax Act, 2025 (PDF), Income-tax Rules, 2026 (PDF), S.O. 3582(E), EPF contribution rate (PDF), S.O. 3580(E), EPS contribution rate (PDF), Code on Social Security (Central) Rules, 2026 (PDF), Ministry of Labour and Employment, additional FAQs, 16 Mar 2026 (PDF)Checked 1 Oct 2026

Philippines

The employer, or the EOR, takes income tax out of each salary payment and pays it to the Bureau of Internal Revenue (BIR). It files Form 1601-C by the 10th day of the next month, and by 15 January for December. It files the yearly return, Form 1604-C, by 31 January. Each employee gets a certificate on Form 2316.BIR Form 1601-C guidelines (PDF), BIR Form 1604-C guidelines (PDF), BIR Revenue Regulations No. 11-2018 (PDF), BIR Form 2316 (PDF), SSS Circular No. 2024-006, contribution schedule (PDF), SSS, contribution table, PhilHealth Circular No. 2020-0005 (PDF), DBM Circular Letter No. 2024-2, Pag-IBIG contributions (PDF), SSS, employer registration, PhilHealth, employer registration, Republic Act No. 9679 (Pag-IBIG Fund Law), section 7Checked 1 Oct 2026

Netherlands

The employer, or the EOR, registers with the Belastingdienst and gets a payroll tax number. It files a payroll tax return for each month or each period of 4 weeks. In it, it pays the wage tax and the employee's national insurance contributions that it takes out of the pay. It also pays the employer's premiums and the Zvw levy.Belastingdienst, Handboek Loonheffingen 2026 (PDF), Belastingdienst, rates and amounts for payroll taxes from 1 Jan 2026 (PDF), Belastingdienst, low and high AWf premium, Belastingdienst, employee insurance contributions (English), Minimum Wage and Minimum Holiday Allowance Act, articles 15 to 17, Rijksfinanciën, SZW budget 2027, explanatory memorandum, Belastingdienst, the 30% ruling, Ondernemersplein, the 30% ruling becomes 27%Checked 2 Oct 2026

Singapore

The employer, or the EOR, pays CPF for each employee who is a citizen or a permanent resident. It pays the employer's share and the employee's share, and it takes the employee's share out of the salary. CPF for a month is due on the last day of that month. The CPF Board takes action if the payment is not made by the 14th of the next month, and it charges interest of 1.5% a month on late payments.CPF Board, enforcement and penalties, CPF Board, how much CPF contributions to pay, CPF Board, what payments attract CPF contributions, CPF Board, contribution changes from 1 Jan 2027, CPF Board, Skills Development Levy, CPF Board, contributions to self-help groups, IRAS, filing employee earnings (IR8A), IRAS, Auto-Inclusion Scheme (AIS), IRAS, tax clearance for foreign and PR employees (IR21)Checked 2 Oct 2026

Brazil

The employer, or the EOR, reports each new employee in eSocial before the first day of work, and the monthly payroll by the 15th of the next month. It pays the social security contributions and the FGTS by the 20th of the next month, and the contributions on the 13th salary by 20 December. It withholds income tax (IRRF) and pays it by the end of the second 10-day period of the next month.eSocial, guidance manual S-1.3 (PDF), gov.br, the FGTS Digital payment guide, gov.br, DCTFWeb, Lei 11.196/2005, article 70, Lei 8.212/1991, articles 22 and 28, Decreto 3.048/1999, articles 202 and 202-A, Decreto 3.048/1999, Annex V (RAT by activity), IN RFB 2.110/2022, Annex III (FPAS 515), Portaria Interministerial MPS/MF 13/2026, the 2026 INSS table (DOU), Receita Federal, the 2026 income tax tables, Lei 14.973/2024, the end of the payroll tax reliefChecked 2 Oct 2026

Spain

The employer, or the EOR, registers with the Seguridad Social (TGSS) before it starts, and it gets a contribution account code. It registers each worker before the first day of work. Since 1 August 2026, it reports a worker who leaves within 6 calendar days. All employers use the Sistema RED to file, and they pay the contributions in the month after the month of pay.General Social Security Act (LGSS) (BOE), Real Decreto 84/1996, registration of employers and workers (BOE), Real Decreto 643/2026, 6 days to report a worker who leaves (BOE), Orden PJC/297/2026, the 2026 contribution rules (BOE), Seguridad Social, the solidarity contribution (PDF), Agencia Tributaria, the duties of the withholder, Personal Income Tax Act (LIRPF), articles 93 and 99 (BOE), Agencia Tributaria, the special regime for posted workersChecked 2 Oct 2026

Mexico

The employer, or the EOR, registers with IMSS. It reports each new employee, each change of salary and each departure within 5 working days. It pays IMSS each month by the 17th of the next month. It pays the retirement and old-age contributions every 2 months. Employers with 5 or more workers use the IMSS payment system (SUA).IMSS, Social Security Act (LSS) (PDF), IMSS, the SUA payment system (PDF), Income Tax Act (LISR), articles 2, 96 and 99 (Orden Jurídico Nacional), Mexico City Tax Code 2026, articles 156 to 159 (PDF), INEGI, the 2026 UMA values (DOF, 9 Jan 2026), Pension reform decree, transitory article 2 (DOF, 16 Dec 2020)Checked 2 Oct 2026

What you pay each month

The EOR's fee. In our 10 countries, the published fees are US$197 to US$796 a month for each employee.

The salary, and the employer costs that the law requires on top of it: 4.0% of the gross salary in India to 50.9% in Brazil.

Together, the employer costs and the lowest published fee add 12.6% of the gross salary in Canada to 61.2% in Brazil. Compare the all-in cost in every country.

Some providers also ask for a deposit, or charge a margin on the exchange rate. Read about the hidden costs of an EOR.

Sources: Boundless pricing, Oyster pricing, European Central BankChecked 1 Oct 2026

An EOR or a local payroll company?

A local payroll company calculates the pay, the tax and the contributions, and it files the returns. It does not employ the person. Your company stays the legal employer, with all the duties of an employer under local law.

• A payroll company fits when your company already has a company or a branch in the country, and it accepts the duties of a local employer.
• An EOR fits when you have no company in the country, or when you hire one or a few people to test a market.

Each country guide explains when a payroll company is enough in that country. Staff in a country can also create a taxable presence for your company, whoever runs the payroll. Read about permanent establishment.