What should you consider while choosing an Employer of Record?

​

​

When selecting an Employer of Record (EOR) payroll company, it's important to consider several factors to ensure that the provider aligns with your specific needs and requirements.

 

Here are some key considerations:

 

​

Technology and Payroll System

 

Evaluate the payroll system and technology platform used by the EOR payroll company. Ensure that their software is user-friendly, secure, and capable of handling the complexities of the entertainment industry payroll, such as varied rates, residuals, and allowances. Look for features like online access to payroll data, employee self-service portals, and customized reporting options.

 

​

Compliance and Legal Expertise

 

The EOR payroll company should have a strong track record of maintaining compliance with employment laws, tax regulations, and union agreements. Inquire about their processes for staying up to date with changing laws and their approach to mitigating compliance risks.

 

​

Expertise and Industry Experience

 

Look for an EOR payroll company that specializes in the film industry or has extensive experience working with entertainment productions. They should understand the unique payroll and compliance needs of the industry, including union and guild requirements, tax regulations, and production accounting.

 

​

Geographic Coverage

 

If you're planning to shoot your film in multiple locations or internationally, ensure that the EOR payroll company can handle payroll and employment compliance in those specific regions. Verify their ability to navigate local employment laws, tax requirements, and cultural nuances.

 

​

Customer Support and Responsiveness

 

Consider the level of customer support provided by the EOR payroll company. Prompt and reliable customer service is essential when dealing with time-sensitive payroll issues, employee inquiries, and resolving any potential errors or discrepancies.

 

​

Customization and Flexibility

 

Assess the EOR payroll company's ability to accommodate your unique needs and requirements. Consider whether they can tailor their services to meet specific production demands, such as handling different employment types (e.g., union and non-union), managing residuals, or accommodating complex pay structures.

 

​

Reputation and Track Record

 

Look for an EOR payroll company with a strong reputation and a proven track record of delivering reliable and accurate payroll services. Research their history, client testimonials, and industry recognition to assess their credibility and reliability.

 

​

Cost and Pricing Structure

 

Understand the pricing structure of the EOR payroll services. Some companies charge a percentage of payroll, while others have fixed fees. Clarify what is included in the pricing and whether there are any additional charges for specific services, such as tax filing or generating specialized reports.

 

​

Reputation and References

 

Research the EOR payroll company's reputation within the industry. Look for reviews, testimonials, or ask for references from other film productions or industry professionals who have worked with them. This will give you insights into their reliability, professionalism, and the quality of their services.

 

​

Scalability and Flexibility

 

Consider whether the EOR payroll company can scale their services to meet your production's changing needs. Productions often experience fluctuations in the size of their workforce, and the EOR should be able to accommodate hiring and termination processes efficiently.

 

​

Data Security and Compliance

 

Data security is crucial when outsourcing payroll and employee information. Inquire about the EOR's data protection measures, including encryption, secure storage, and compliance with privacy regulations like GDPR or CCPA. Verify that they have appropriate safeguards in place to protect sensitive data.

 

​

Integration Capabilities

 

If you already have existing systems or software for time tracking, HR management, or accounting, ensure that the EOR payroll company can seamlessly integrate with these systems. Compatibility and integration can streamline processes, reduce data entry, and minimize errors.

 

​

Reporting and Analytics

 

Assess the reporting capabilities of the EOR payroll company. Reliable and customizable reporting can provide valuable insights into labor costs, budgeting, and compliance. Determine if they offer real-time access to payroll reports and analytics to support your decision-making processes.

 

​

References and Case Studies

 

Request references from the EOR payroll company and inquire about their experience working with similar film productions. Ask for case studies or success stories that demonstrate their expertise in handling complex payroll scenarios or resolving challenges specific to the film industry.

 

​

Additional Services

 

Consider whether the EOR payroll company offers any additional services that could benefit your production. This could include access to industry-specific benefits packages, assistance with visa applications for international talent, or specialized services like residuals management.

 

​

Cultural Fit and Communication

 

Effective communication is crucial for a smooth working relationship with the EOR payroll company. Consider their communication style, responsiveness, and willingness to collaborate. A cultural fit between your production team and the EOR can contribute to better understanding and alignment of expectations.

 

​

Contractual Terms and Service Level Agreements

 

Carefully review the contractual terms, service level agreements, and any hidden costs or fees associated with the EOR payroll services. Ensure that the terms are transparent, and the agreement protects your interests.

 

By evaluating these factors, you can select an EOR payroll company that understands the intricacies of the film industry, ensures compliance, and provides reliable, efficient, and customized payroll services for your production.