Two Models

If Firm is the Employer OFF Record (EOF)

We would legally be the official employer, handling all

• Payroll processing,
• Salary Structuring and tax withholding
• HR Management
• IT & Administration,
• Infrastructure,
• Recruitment,
• Legal compliance, & day-to-day operations,
• including managing the work performance and responsibilities of your team.

If the firm is Employer on Record (EOR):

Everything would remain 95% same. We would help firm establish Its own entity in India or Philippines. In this setup, we would provide an Official director from our team legally responsible to manage day-to-day operations, and you can appoint a nominee director from your company. As the 100% shareholder, you retain full control and have the authority to replace us at any time. All employees will be formally employed by your Indian entity. However, all our responsibility continues as we would have been EOR. We shall provide you with periodic reporting on the same.

100% Customization and Control:

In both scenarios, whether we act as the Employer on Record or off Record, you maintain practical control over the team. This means you oversee their reporting, hiring, promotions, firing, bonuses, compensation structure everything. Additionally, you have the flexibility to implement all policies necessary for effective team management and to reflect your firm's culture and values, as long as these policies are legal and compliant. We provide the structure and support to enable this control seamlessly.

Additional Cost & Implication on Firm becoming EOR

Leave Encashment & Paid Leave:

You will be required to provide an additional 2 weeks of leave encashment. Currently, we provide 18 days of paid leave to our employees, but as the employer on record, you will be mandated to offer 28 days of paid leave as per the law.

Impact on Salary Structure & Take-Home Pay:

At present, we have an optimized salary structure from a tax perspective. When employees shift to your payroll, their take-home pay is likely to decrease by 10%-25%, depending on their tax bracket. You will need to compensate them for this difference. We have further detailed the salary-optimized tax structure later in the proposal.

Compliance Responsibilities:

We will be happy to do all the compliances on your behalf. but it comes with some extra cost. As the employer on record, you will be responsible for adhering to all legal compliances, including labor laws, income tax withholdings, and any other statutory requirements that come with managing employee payroll and benefits.

An alternative

Is to remain as the Employer off Record (EOF), with management and reporting rights already in your hands under Managed Offshoring Services. We can provide a written agreement confirming your authority to take all employees with you, either to your own payroll or with another partner. This option offers flexibility and control without the added complexities of employment compliance and payroll changes