What is an Agent of Record (AOR)?
Last updated: August 5, 2026
Applies to: Everyone — workers, partners, and clients.
Summary: An Agent of Record (AOR) is the company that contracts with and pays an independent contractor directly, and manages the compliance around engaging that contractor — without becoming their employer. For independent contractors, Ascen acts as the Agent of Record.
What an AOR does
When a worker is an independent contractor (also called 1099, Corp-to-Corp, or C2C) rather than an employee, they aren't put on payroll as an employee. Instead, an Agent of Record:
Is the counterparty on the contract and pays the contractor directly
Manages contractor classification and compliance — confirming the worker is properly engaged as an independent contractor
Collects the right tax paperwork and issues year-end forms
Because an independent contractor is not an employee:
No taxes are withheld — the contractor is responsible for their own taxes
They complete a W-9 (US) or W-8BEN (outside the US), not employee tax forms
They receive a year-end 1099-NEC where applicable, not a W-2 or T4
AOR vs EOR
Employer of Record (EOR) — for employees. The EOR is the legal employer, withholds taxes, and provides benefits and insurance.
Agent of Record (AOR) — for independent contractors. The AOR pays the contractor and manages IC compliance, but is not the employer and does not withhold taxes.
Which one applies to you depends on whether you're engaged as an employee or an independent contractor. If you're not sure, see Am I an employee or an independent contractor?.
Why it matters
Engaging contractors correctly is a compliance question with real stakes — misclassifying an employee as a contractor can lead to significant penalties. Acting as Agent of Record, Ascen helps make sure independent contractors are engaged and paid the right way.
Questions? Email support@ascen.com.
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What is an Employer of Record (EOR)?
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