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Founder & CEO at Ascen

There are several vendors offering EOR, AOR, and PEO solutions for staffing agencies. Here's how to tell them apart. 1. Employer of Record (EOR): • Acts as legal employer • Handles payroll, taxes, insurance, benefits • Ideal for rapid expansion without legal entity setup 2. Agent of Record (AOR): • Manages independent contractors • Ensures compliance, handles invoices and payments • Mitigates compliance risks 3. Professional Employer Organization (PEO): • Co-employment agreement (not full employer of record, so you have risk of compliance like wage and hour laws) • Provides HR support, payroll, some insurance • Offers HR expertise and core function support When choosing, consider: • Workforce size • Legal entity presence • In-house compliance capabilities • Risk tolerance • Long-term projections and costs

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