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Employer of record

A company that legally employs staff on another's behalf, handling payroll and compliance, so a foreign-owned company can have a US employee.

The short answer, then the detailChecked September 2026

The detail

What it means in practice.

Hiring a US employee directly means registering for payroll taxes, following employment law, buying insurance, and taking on a US presence that brings US income tax. An employer of record employs the person for you, bills the company monthly and handles the compliance. It's how most foreign-owned companies hire their first US staff, until they're ready to be a US employer themselves.

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