Revolution Resource Center
Employers of Record
Ever wondered how movie crews get paid? And once they get paid who is their employer? In simple words an ‘Employer of Record’ (EOR) is a third-party mostly a Payroll company contracted by a production company or a studio to take on the core compliance responsibilities of an employer, as specified under the law.
An employer of record can help independent filmmakers, commercial producers to minimize the unnecessary costs on their productions by organizing the process of how the film crew gets paid.
What is an Employer of Record?
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An Employer of Record (EOR) is a service provider or organization that takes on the legal responsibilities and obligations of being an employer for a specific group of workers.
This arrangement allows businesses to outsource certain aspects of employment, such as payroll processing, benefits administration, and compliance with employment laws and regulations.
When an organization engages an EOR, it retains control over the day-to-day tasks, management, and direction of the employees, while the EOR handles the administrative and legal aspects of employment.
The EOR becomes the official employer on record for purposes such as payroll taxes, workers' compensation insurance, and other employment-related legal requirements.