Service model comparison

Employer of record vs. contractor of record

Both let you hire outside your home country without a local entity, but they apply to different workers: an employer of record employs a full-time employee; a contractor of record contracts with and pays an independent contractor. Mixing them up is what creates misclassification risk.

Employer of record

  • The worker is a full-time employee; the EOR is the legal employer
  • Handles local payroll, tax, statutory benefits, and employment compliance
  • Higher price because the worker is an employee: published examples start at $599 per employee per month (Deel and Remote both list this)
  • Best fit when the person works like staff — fixed hours, managed direction, ongoing role

Contractor of record

  • The worker is an independent contractor; the platform holds the local contract and pays them
  • Handles localized contract, invoicing, and compliance screening rather than employment
  • Lower price: both Deel and Remote list $325 per contractor per month
  • Best fit when the person genuinely operates as a contractor — scope, hours, and tools under their control

How should you make the decision?

Start with the work your company needs performed, the decisions that require internal ownership, the amount of day-to-day capacity required, and the risks of changing models. Then ask providers to map their scope against that operating picture.

A model is not a quality guarantee. Service teams, implementation, systems, pricing, and contract terms differ materially within every category.