Employer of record companies sources

What should a busy buyer check first?

Start with the job you need the provider to do. Have you already chosen a candidate, or do you still need someone to run the search? Write that answer at the top of your comparison.

Next, separate public benchmarks from the terms you will sign. A wage figure can help you review a budget. A recruiting survey can help you question a proposed schedule. Neither sets the price or start date for your hire.

Build your comparison around the same role, seniority and work location. Give each provider the same requirements, including the hours your team needs. Ask for a written scope that names the employer and explains who handles payroll.

For each claim, record:

• The exact measure, including what it includes and excludes.
• The date and country it covers.
• Whether it describes a broad market, a provider's results or your proposed contract.
• The document that will govern your purchase.

Treat a list of employer of record companies as a starting point. Before choosing one, you should be able to explain who employs the person and what your invoice covers. You should also know which tasks remain with your team.

What does the data say about cost and hiring time?

Use wage data for the right role

The US median annual wage for software developers was $135,980 in May 2025, according to the BLS Occupational Outlook Handbook.

That figure gives a US wage benchmark for software developers. Keep its occupation and date attached whenever you use it in a budget. Do not label it a senior engineer salary or a Latin American salary.

For a hiring comparison, put your US cost assumptions beside the proposed overseas quote. Ask finance to use the same cost categories on both sides. If one column contains wages and the other includes benefits and payroll support, label that difference before calculating savings.

A useful quote should let you answer a practical question: what will we pay for this person under these terms? Ask how the invoice changes if compensation rises or the hire's location changes.

Keep the hiring clock consistent

SHRM describes median time to fill in 2025 as roughly a month and a half for executive and nonexecutive positions. Its measure runs from job requisition to offer acceptance. See SHRM's recruiting benchmark discussion.

Use that definition when reviewing a provider's timing claim. A clock that starts after role approval leaves out the approval stage. A clock that stops at a shortlist leaves the interviews and offer decision ahead.

Request separate dates for candidate delivery, offer acceptance and the first working day. Ask which dates depend on your interview availability. If the hire must finish a notice period, have the provider account for it in the proposed start date.

Avoid turning a broad survey into a promise for your vacancy. Your decision needs a schedule for the actual role, with an owner for each step.

Use tax forms for their stated purpose

The IRS identifies Form W-8 BEN as a certificate of foreign status for US tax withholding and reporting for individuals. Its guidance tells qualifying foreign beneficial owners to give the form to the withholding agent or payer. See the IRS form guidance.

Keep that document in the tax part of your review. Separately, ask who signs the employment agreement and what employment arrangement the provider proposes. Have your tax adviser confirm which forms apply to the payment arrangement.

How do the hiring models differ for nearshore teams?

Compare providers by the work they will perform. Start with candidate search and employment, then check the handoff between them.

Use this table to frame questions, then test the proposed arrangement against the contract. Ask the provider to name any other entity involved in employing or paying the hire.

For a Latin American team, also separate location from working hours. Mexico City stays at UTC-6 without daylight saving time. Tijuana follows a different schedule, including daylight saving time. A country name alone will not settle your meeting calendar. See the North America time zone records.

Bogotá stays at UTC-5 without daylight saving time. São Paulo stays at UTC-3 without daylight saving time. Check each city against your US team's seasonal clock changes using the South America time zone records.

Write the required shared hours into the role. Ask candidates to confirm those hours before the final interview. If your team needs afternoon incident coverage, specify that window rather than asking for general US overlap.

What should you ask a provider before signing?

Send the questions with the role description. Ask for answers in writing so finance, HR and the hiring manager can review the same terms.

Ask who owns each employment task

Request the legal employer's name and the proposed employment agreement. Ask who handles payroll corrections and who responds when the employee raises a benefits issue.

Have the provider identify the duties your company retains. Include equipment, access to company systems and day-to-day management in that discussion. Give each task a named owner before onboarding starts.

Ask for the full cost under realistic scenarios

Request a quote for the actual role and country. Ask which costs are included in the recurring charge and which can appear separately.

Then ask the provider to price the situations your team expects to face:

• A compensation increase during the engagement.
• A change in benefits or required employer costs.
• A hire leaving before your planned project ends.
• An employment transfer to another arrangement.

Keep the answers beside the base quote. Ask how exchange rates affect billing and how much notice applies to price changes. Do not fill an empty price field with zero.

Ask what performance figures measure

For retention, request the sample size and cohort dates. Ask whether replacements count as retained placements and how departures are classified.

For speed, request the start and end events used in the calculation. Ask whether the figure covers completed hires only. Compare the proposed schedule with your team's available interview slots.

For a guarantee, request the full terms. Ask what starts a replacement search and what you must do to qualify. Confirm the treatment of employment exit costs separately.

Ask for a workable first-day plan

Request the target start date and the steps needed to reach it. Confirm who sends the contract, collects payroll details and checks equipment readiness.

Give the hiring manager a separate checklist for system access and initial work. An accepted offer should lead to a specific onboarding plan, with unresolved tasks assigned to someone.

Where does Opus fit in your decision?

This site is an Opus-owned reference; recommendations are editorial.

Opus states: "Opus charges one flat monthly rate per hire. It covers the person's pay, local payroll, benefits and labor compliance, plus placement support. There is no separate recruiting fee. The rate depends on role, seniority and location."

Use that scope to decide what to request in a quote. Ask for the rate for your role and location, then confirm the included costs in writing.

Talk to Opus about a role.

Opus also states: "Every placement carries a lifetime replacement guarantee with no cap and no time limit." Request the written terms and ask how they apply to your planned engagement.

Keep the buying decision tied to the work you need. If you already have a finalist, ask how the proposed service handles that situation. If you still need candidates, make the search requirements part of the discussion.

Bring the role description, work location and required shared hours. Include the budget owner and the person who will manage the hire. Ask for a written scope that both can review before committing.

Talk to Opus about a role.

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