Upwork Payroll enables U.S. clients to legally employ freelancers via a third-party Employer of Record (EOR), handling payroll, taxes, and benefits.
When hiring talent, if you determine the talent in your engagement is best classified as an employee (rather than an independent contractor), we offer the Upwork Payroll service through a trusted, third-party Employer of Record (EOR) . In such cases, the talent will become an employee of an EOR and be assigned to you for the purposes of the project.
Hourly and salaried assignments are available through Upwork Payroll; fixed-price contracts are not supported through this service. This article refers to Upwork Payroll hiring in the U.S. Go here to learn more about international hiring with Upwork Payroll.
Our EOR service provider will employ the talent in compliance with country or locale-specific laws and handle the administration of the talent’s employment.
When hiring U.S.-based talent as employees, the EOR will:
- Enter into an employment agreement with the talent
- Manage the talent’s pay
- Maintain workers’ compensation insurance coverage for the talent
- Administer payroll taxes
- Provide legally mandated benefits (e.g., as required by the Affordable Care Act)) as well as voluntary benefit offerings
As the client receiving work from the EOR service provider’s employee you’re responsible for:
- Directing the talent’s day-to-day work on your project
- Complying with laws prohibiting workplace discrimination and harassment
- Providing a physically safe and harassment-free working environment
- Allowing the talent to take legally-required breaks or leave
Important:
You must not start work until the employee completes onboarding with their employer (the EOR service provider). This can include background checks and other steps required by law or by the employer. The EOR will also provide the talent with any legally required notices or benefits information and help the talent set up their account for timekeeping and pay. On average, the onboarding process for U.S.-based talent takes 3-5 business days to complete. Legal compliance and payments to talent for any work that happens before that process is finished will be your company’s responsibility.