A global employer of record service provider has already done the often costly and work of setting up entities around the world ensuring all banking, insurance, tax, HR, facilities and contract requirements are met and it has the local infrastructure in place to employ and pay local workers. An employer of record service company is a cost effective way to outsource payroll and HR functions. The business pays the employer of record a set rate for every hour the employee works, and the employer of record handles all tasks.