What is an Employer of Record (EOR)?

Last updated: August 5, 2026

Applies to: Everyone — workers, partners, and clients.

Summary: An Employer of Record (EOR) is a company that becomes the legal employer of a worker — running payroll, withholding and remitting taxes, providing insurance and benefits, and taking on employment compliance — while someone else directs the day-to-day work. For employees, Ascen is the EOR, built specifically for the staffing industry.

What an EOR does

An EOR is the legal employer of record for a worker in a given location. It handles:

  • Payroll — paying the worker and withholding and remitting income and payroll taxes

  • Compliance — onboarding, work-eligibility verification (Form I-9 in the US, or the local equivalent), and federal, state, and local labor law

  • Insurance — workers' compensation and liability coverage

  • Benefits — health and other benefits for eligible employees

  • Records and forms — employment records and year-end tax documents (for example, a W-2 or T4)

Meanwhile, whoever is using the EOR keeps control of the actual work — who to place, what they do day to day, and the client relationship.

Why staffing firms use an EOR

Through an EOR, a staffing agency can place a worker in a state or country where the agency has no legal entity — without building its own payroll, tax, insurance, and compliance operation. The EOR takes on the employer's legal responsibility and liability so the agency can focus on recruiting and serving clients. This matters most in the US, where employment rules vary by state and misclassification or wage-and-hour mistakes carry heavy penalties.

The three parties

A typical staffing placement involves three parties:

  • Your staffing partner — recruits and places the worker and manages the assignment and schedule.

  • Ascen (the EOR) — the legal employer for payroll, tax, benefits, and compliance.

  • The client — the company where the work actually happens.

How this applies to you

If you're employed through Ascen, Ascen is your EOR — see What is an Employer of Record (EOR) and Agent of Record (AOR)? for what that means for your pay, taxes, and forms. If you're an independent contractor, Ascen acts as your Agent of Record instead — see What is an Agent of Record (AOR)?.

Questions? Email support@ascen.com.

  • What is an Agent of Record (AOR)?

  • What is Ascen?

  • What is an Employer of Record (EOR) and Agent of Record (AOR)?