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Taiwan Employer of Record (Taiwan EOR)
  • By Travis Kliever
  • Updated October 20, 2023
Travis Kliever

Travis Kliever

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Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.
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Taiwan Employer of Record (Taiwan EOR)

In this article
What is a Taiwan Employers of Record?
What services does a Taiwan Employers of Record provide?
How to engage a Taiwan Employers of Record?
What are the benefits of a Taiwan Employers of Record?
What are the disadvantages of a Taiwan Employers of Record?
Conclusion
FAQs

What is a Taiwan Employers of Record?

A Taiwan Employers of Record (EOR) is a company or service provider that assists foreign businesses in employing and managing workers in Taiwan. Also known as a Professional Employer Organization (PEO) or Global Employment Organization (GEO), an EOR acts as the legal employer of record for the employees, handling various administrative tasks related to employment.

When a foreign company wants to establish a presence or hire employees in Taiwan, it can choose to work with an Employers of Record service. The EOR takes care of essential responsibilities such as payroll processing, tax withholding, social insurance contributions, benefits administration, compliance with labor laws, and other HR-related tasks. By partnering with an EOR, the foreign company can effectively outsource the administrative burden and focus on its core business activities.

The EOR model is particularly useful for companies that do not have a legal entity or established infrastructure in Taiwan but still wish to engage local talent and operate within the country’s legal framework. It allows businesses to navigate the complexities of local employment regulations and ensures compliance with local labor laws and practices.

By working with a Taiwan Employers of Record, foreign companies can have a streamlined and compliant approach to hiring employees in Taiwan without the need for establishing their own legal entity or setting up an in-house HR department.

What services does a Taiwan Employers of Record provide?

A Taiwan Employers of Record (EOR) typically provides a range of services to assist foreign companies in employing and managing workers in Taiwan. These services may include:

  1. Employee Onboarding: The EOR helps with the hiring process, including employment contracts, offer letters, and other necessary documentation. They ensure compliance with local labor laws and regulations.
  2. Payroll Processing: The EOR takes care of monthly payroll calculations, including salary disbursement, tax withholding, and social insurance contributions. They ensure accurate and timely payment to employees while complying with local tax regulations.
  3. Benefits Administration: The EOR manages employee benefits, such as health insurance, pension plans, and other statutory benefits required by Taiwan law. They handle the enrollment, contributions, and necessary paperwork associated with these benefits.
  4. Compliance and Legal Support: The EOR keeps up-to-date with Taiwanese labor laws and regulations, ensuring that the employment practices of the foreign company align with the local requirements. They assist with compliance, including employment contracts, termination procedures, and workplace policies.
  5. Tax Compliance: The EOR handles tax compliance matters related to employment, including withholding taxes from employee salaries, filing tax returns, and providing necessary tax documentation to authorities.
  6. HR and Employee Relations: The EOR may offer support in HR matters, such as employee record-keeping, leave management, and handling employee grievances. They can provide guidance on local employment practices and help resolve any employment-related issues.
  7. Work Permits and Visa Support: If foreign employees require work permits or visas to work in Taiwan, the EOR can assist with the application process and provide guidance on immigration regulations.
  8. Termination and Offboarding: When an employment relationship ends, the EOR manages the termination process in accordance with local laws, ensuring proper notice periods, severance pay, and exit procedures are followed.

It’s important to note that the specific services provided by a Taiwan Employers of Record may vary depending on the service provider and the needs of the foreign company.

How to engage a Taiwan Employers of Record?

To engage a Taiwan Employers of Record (EOR), you can follow these general steps:

  1. Research and Identify Potential EORs: Look for reputable EOR service providers in Taiwan. Consider factors such as their experience, expertise, client reviews, and the range of services they offer.
  2. Initial Consultation: Contact the EORs you have shortlisted and request an initial consultation. During this discussion, explain your requirements, the number of employees you plan to hire, and any specific needs or concerns you may have. This consultation allows you to evaluate the EOR’s understanding of your business and their ability to meet your needs.
  3. Service Proposal and Agreement: After the consultation, the EOR will provide you with a service proposal. This document outlines the scope of services, pricing structure, timelines, and any additional terms and conditions. Review the proposal carefully and seek clarification on any aspects that require further explanation. If you agree with the terms, sign the agreement to formalize the engagement.
  4. Employee Information and Onboarding: Provide the necessary employee details to the EOR, including personal information, employment contracts, and any required documentation. The EOR will handle the onboarding process, ensuring legal compliance and setting up the necessary payroll and benefits administration systems.
  5. Ongoing Collaboration and Communication: Maintain regular communication with the EOR regarding any changes in employee information, updates on HR policies, or other relevant matters. Stay informed about payroll cycles, reporting requirements, and compliance obligations.
  6. HR and Employee Management: Collaborate with the EOR on HR-related matters such as leave management, performance reviews, and employee relations. Seek their guidance on local labor laws and practices to ensure compliance and address any employee-related issues that may arise.
  7. Termination and Offboarding: If necessary, work with the EOR to manage employee terminations and offboarding procedures, ensuring compliance with local laws regarding notice periods, severance pay, and required documentation.

It’s important to note that engaging an EOR involves a contractual relationship, and it’s crucial to carefully review the agreement and ensure you have a clear understanding of the services provided, fees involved, and the responsibilities of both parties.

What are the benefits of a Taiwan Employers of Record?

Engaging a Taiwan Employers of Record (EOR) offers several benefits for foreign companies looking to employ workers in Taiwan. Some of the key advantages include:

  1. Compliance with Local Labor Laws: Taiwan has specific labor laws and regulations that companies must adhere to when employing workers. EORs are well-versed in local employment laws and ensure that your business remains compliant. They handle tasks such as employment contracts, payroll processing, tax withholding, and benefits administration according to local regulations.
  2. Simplified Entry into the Taiwanese Market: If you are a foreign company without an established legal entity in Taiwan, engaging an EOR allows you to quickly and easily enter the market. You can hire employees, set up payroll, and operate within the legal framework without the need for establishing a separate entity or navigating complex legal procedures.
  3. Cost and Time Savings: Partnering with an EOR eliminates the need to set up and maintain your own infrastructure, including legal entity establishment, HR department, and payroll systems. This can significantly save time, effort, and costs associated with these administrative tasks. The EOR takes care of payroll processing, tax compliance, benefits administration, and other HR-related responsibilities, allowing you to focus on your core business activities.
  4. Local Expertise and Support: EORs have extensive knowledge and expertise in the local labor market, employment practices, and regulations in Taiwan. They can provide guidance on hiring practices, employment contracts, benefits, and other HR matters. Having a local partner with in-depth knowledge can help you navigate complexities, minimize risks, and make informed decisions.
  5. Flexibility and Scalability: Engaging an EOR offers flexibility in scaling your operations in Taiwan. You can quickly and easily hire or downsize your workforce based on business needs without the challenges of hiring and terminating employees directly. The EOR handles the administrative processes associated with these changes, ensuring a smooth transition.
  6. Employee Management Support: EORs often provide support in HR matters, including employee onboarding, leave management, performance evaluations, and employee relations. They can offer guidance and best practices to ensure a positive work environment and employee satisfaction.
  7. Risk Mitigation: By partnering with an EOR, you can mitigate various risks associated with employment in Taiwan. The EOR stays updated on labor laws, ensures proper documentation, and handles compliance-related tasks, reducing the risk of legal penalties, fines, or reputational damage due to non-compliance.

It’s important to assess your specific business needs and conduct thorough research to select a reputable and reliable Taiwan Employers of Record that aligns with your requirements and provides the necessary support for your expansion or employment goals in Taiwan.

What are the disadvantages of a Taiwan Employers of Record?

 

While engaging a Taiwan Employers of Record (EOR) offers several benefits, there are also some potential disadvantages to consider:

  1. Limited Control over HR Functions: When working with an EOR, you relinquish some control over HR functions, as the EOR becomes the legal employer of record for your employees in Taiwan. This means that certain HR decisions, such as hiring and termination, may require coordination with the EOR. If maintaining direct control over HR functions is important to your business, working with an EOR may not align with your preferences.
  2. Potential Communication Challenges: Depending on the EOR service provider, there may be potential communication challenges, especially if language barriers exist. Ensure that the EOR you choose has proficient English language skills and can effectively communicate with you and your employees to avoid misunderstandings or miscommunication.
  3. Cost Considerations: Engaging an EOR involves costs, and it’s important to assess whether the benefits outweigh the expenses. EOR services typically charge fees for their services, which can include setup fees, monthly service fees, and other associated costs. Evaluate the cost structure and compare it with the potential costs of establishing your own legal entity and hiring in-house HR personnel to determine the most cost-effective solution for your business.
  4. Potential Dependency on the EOR: When relying on an EOR for employment and HR functions, there is a level of dependency on their services. If you decide to discontinue your engagement with the EOR in the future, there may be some challenges involved in transitioning the employment responsibilities and processes back in-house or to another service provider. It’s important to consider the long-term implications and have contingency plans in place.
  5. Limited Cultural Integration: As the EOR is responsible for administrative tasks, they may have limited involvement in the cultural integration of employees within your organization. Building a cohesive company culture and fostering team dynamics may require additional efforts from your end to ensure employees feel integrated and aligned with your business values.
  6. Potential Lack of Industry-Specific Expertise: EORs generally serve clients across various industries, which may result in a lack of specialized industry knowledge. If your business operates in a niche industry with specific HR requirements, you may find it challenging to get industry-specific expertise and support from a general EOR service provider.
  7. Geographical Limitations: EORs typically focus on specific regions or countries. If your expansion plans extend beyond Taiwan, you may need to engage different EORs or explore alternative solutions to ensure compliance and HR support in other locations.

When considering these potential disadvantages, it’s essential to conduct thorough research, evaluate your specific business needs, and carefully assess the pros and cons of engaging a Taiwan Employers of Record before making a decision.

Conclusion

In conclusion, a Taiwan Employers of Record (EOR) can provide valuable assistance to foreign companies looking to employ workers in Taiwan. They offer services such as payroll processing, benefits administration, compliance with labor laws, and HR support. The benefits of engaging an EOR include compliance with local regulations, simplified market entry, cost and time savings, local expertise, flexibility, and risk mitigation.

However, it’s important to consider the potential disadvantages as well. These include limited control over HR functions, communication challenges, cost considerations, potential dependency on the EOR, limited cultural integration support, lack of industry-specific expertise, and geographical limitations.

To make an informed decision, thoroughly research and evaluate your specific business needs, assess the advantages and disadvantages, and consider alternatives such as establishing a legal entity and in-house HR department. By carefully weighing the pros and cons, you can determine whether engaging a Taiwan Employers of Record is the right choice for your company’s employment and expansion goals in Taiwan.

FAQs

Yes, engaging a Taiwan Employers of Record can be suitable for businesses of various sizes. Whether you are a small startup, a medium-sized company, or a large multinational corporation, working with an EOR allows you to navigate the complexities of employing workers in Taiwan without the need for establishing your own legal entity or setting up an in-house HR department. EOR services can be particularly beneficial for companies that do not have an established presence in Taiwan but still want to access the local talent pool and comply with local labor laws.

 

Yes, a Taiwan Employers of Record can assist with hiring foreign workers in Taiwan. They have expertise in navigating the immigration and work permit processes and can provide guidance and support in securing the necessary permits and visas for foreign employees. The EOR ensures compliance with immigration regulations and assists with the required documentation and application procedures. By working with an EOR, foreign companies can effectively hire and manage both local and foreign workers in Taiwan while ensuring adherence to the legal and regulatory requirements.
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Article By

Travis Kliever

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.