When you hire through an EOR, who pays each tax and social-insurance line, and whose invoice does it land on?
Summary
Summary
The EOR's entity remits; you pay. Because the EOR's local entity is the legal employer, the employer-side social insurance and payroll taxes are filed and paid in its name and then billed to you alongside the salary and the fee. Employee-side items, income tax withholding and the employee's own contributions, are deducted from pay and appear inside the gross salary on your invoice, not as separate lines. Your company normally remits nothing locally. The rates do not change because an EOR is involved: the lines on this site's country pages are the lines on the invoice.
Three kinds of line
| Kind | Whose cost | Who remits | On your invoice |
|---|---|---|---|
| Employer-side social insurance and payroll tax | Yours, through the invoice | The EOR's entity | Separate lines above the salary, or one "employment cost" line |
| Employee-side contributions and income tax withholding | The employee's | The EOR's entity, by deduction | Inside gross salary; never a separate line |
| The EOR fee | Yours | One fixed line ($599 at Deel, $699 at Remote, and so on) |
Deel's FAQ says all costs "including local compliance, payroll, and benefits administration, are included in your quoted price," but that is the fee; salary and employer costs are billed as their own lines every month. Remote works the same way, with an estimated prefunding invoice at the start of the month and a reconciliation of actual costs plus the fee the month after.
Four countries, line by line
The employer lines below are lifted from this site's country pages. Every one is remitted by the EOR's entity and billed to you.
United States, $90,000
| Line | Rate | Amount | Remitted by |
|---|---|---|---|
| Social Security, employer share | 6.20%, capped at $184,500 | $5,580 | EOR |
| Medicare, employer share | 1.45% | $1,305 | EOR |
| FUTA, net of state credit | 0.60%, capped at $7,000 | $42 | EOR |
| Total | 7.7% | $6,927 |
State unemployment (SUTA) is charged at the EOR's rate in each state and is not in this site's figure.
United Kingdom, £55,000
| Line | Rate | Amount | Remitted by |
|---|---|---|---|
| Employer NI, Class 1 secondary | 15.00%, no ceiling | £8,250 | EOR |
| Workplace pension, minimum employer contribution | 3.00% on £6,240 to £50,270 | £1,321 | EOR |
| Apprenticeship Levy | 0.50%, employers with a pay bill over £3m | £275 | EOR, where it applies |
| Total | 17.9% | £9,846 |
The levy depends on the EOR's own UK pay bill. The larger providers probably pay it; whether it reaches your quote is a question for each.
Germany, €60,000
| Line | Rate | Amount | Remitted by |
|---|---|---|---|
| Pension, employer share | 9.30%, capped at €101,400 | €5,580 | EOR |
| Health, employer share | 8.75%, capped at €77,400 | €5,250 | EOR |
| Long-term care, employer share | 1.80%, capped at €77,400 | €1,080 | EOR |
| Unemployment, employer share | 1.30%, capped at €101,400 | €780 | EOR |
| Insolvency levy | 0.15% | €90 | EOR |
| Total | 21.3% | €12,780 |
Accident insurance is set per trade association, paid by the EOR, and not in this site's figure.
India, ₹1,800,000
| Line | Rate | Amount | Remitted by |
|---|---|---|---|
| EPS, EPF, EDLI, admin charges, employer share | 13.0% combined, capped at ₹180,000 | ₹23,400 | EOR |
| ESI, employer share | 3.25%, only up to ₹21,000 a month | ₹0 | |
| Gratuity accrual | 4.81% | ₹86,580 | EOR accrues, or bills at exit |
| Total | 6.1% | ₹109,980 |
What your company never touches locally
- Income tax withholding and payment (the employee's; the EOR deducts and remits)
- Employee-side social insurance (the same)
- Year-end filings (in the EOR's name)
Registering with a local tax authority is something your company normally does not do while using an EOR. That is part of why EORs exist, and it leaves the permanent establishment question where it was: the EOR carries the employment registration, but whether your business is taxable in the country depends on what the business does there, not on how the person is employed.
Reading the invoice
If "employment cost" arrives as one line, ask for it broken into the rows above. The rates are statutory and do not move when you change provider; only the fee line and the deposit line do. If the breakdown does not match this site's country page, ask what the difference is: accident insurance, a state tax, a collective-agreement item, or something the EOR has added.
Links on this page currently go directly to providers without affiliate tracking.
Sources
- https://seatbill.com/employer-of-record/c/us
- https://seatbill.com/employer-of-record/c/gb
- https://seatbill.com/employer-of-record/c/de
- https://seatbill.com/employer-of-record/c/in
- https://seatbill.com/employer-of-record/method
- https://www.deel.com/pricing
- https://remote.com/pricing
Related on this site
- Does an employer of record take care of all the compliance when you hire abroad?
- Whose name is on the employment contract when you hire through an EOR?
- Does hiring through an EOR keep you from having a permanent establishment abroad?
- Is an EOR your data processor, or a controller in its own right?
Related on this site
- What happens to your employees when you move them to a different EOR?
- Which EOR risks show up as money on the invoice?
Written by Kaz, independent publisher. No commercial relationship with the providers named unless it is listed on the disclosure page.
Page last updated 2026-10-05. Sources are listed per figure and labeled statutory or payroll reference. Rates last verified 2026-08-21. This is not legal, tax or payroll advice and we do not file anyone's payroll.
Every formula on this site is written out in full on Method. Ordering is by computed cost, never by what a provider pays us.
Corrections: contact form.