5 Common Compliance Risks an Employer of Record Can Help You Avoid

The Hidden Cost of Compliance Gaps

Even the most well-managed companies face risk when hiring in new locations. Employment laws, tax rules, and benefits requirements vary from state to state. A single oversight can lead to penalties, audits, or employee dissatisfaction.

For HR and finance leaders who are stretched thin, keeping up with constant regulation changes is difficult. An Employer of Record (EOR) provides a layer of protection by managing these responsibilities accurately and consistently.

1. Misclassification of Employees

Contractors and employees have different legal and tax requirements. Misclassifying workers can result in back taxes and fines. An EOR ensures every worker is classified correctly and that all employment documentation meets legal standards.

2. Multi-State Payroll Errors

Each state has its own rules for payroll taxes and deductions. When expanding into new markets, errors can happen easily. An EOR centralizes payroll so that wages, tax withholdings, and filings stay accurate across every location.

3. Workers’ Compensation and Unemployment Liability

Without local coverage, a company may be exposed to unexpected claims. Lakeshore Talent’s EOR services provide compliant workers’ compensation coverage and manage unemployment filings, so clients avoid risk and save time.

4. I-9, eVerify, and Labor Law Requirements

Employment verification is one of the most overlooked compliance areas. Missing or incomplete documentation can trigger audits or penalties. An EOR manages onboarding, verification, and ongoing recordkeeping to keep you in compliance.

5. ACA and Benefits Administration

Administering health coverage correctly is critical for both compliance and employee satisfaction. Lakeshore’s EOR service manages benefits enrollment, ACA reporting, and eligibility tracking to ensure accuracy and peace of mind.

Why Companies Partner With Lakeshore Talent

Administering health coverage correctly is critical for both compliance and employee satisfaction. Lakeshore’s EOR service manages benefits enrollment, ACA reporting, and eligibility tracking to ensure accuracy and peace of mind.

Our Clients Benefit From:

  • Accurate payroll and tax management in all 50 states
  • Full ACA-compliant benefits for every worker
  • Guidance from an experienced, woman-owned, WBENC-certified firm
  • A dedicated team that manages every compliance detail

See if hidden risks are slowing your growth:

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About Lakeshore Talent

Lakeshore Talent is a woman-owned, WBENC-certified staffing and recruiting firm with more than 25 years of experience helping companies grow with confidence. Our Employer of Record services simplify compliance, payroll, and benefits for organizations in the U.S. and worldwide.

 

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