How to stay compliant

Employer-of-Record (EOR) in Bosnia and-Herzegovina: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Bosnia and-Herzegovina: Do You Need One?

So you want to hire someone in Bosnia and Herzegovina. Problem is, your company is located somewhere else. 

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Bosnia and Herzegovina, using an EOR can help you bypass the traditional obstacles to hiring full-time employees. 

But there’s a catch: EOR solutions in Bosnia and Herzegovina are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Bosnian and Herzegovinian entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Bosnia and Herzegovina, and it doesn’t involve forking out huge amounts of money for an EOR. 

The solution: Hire your teammates in Bosnia and Herzegovina as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Bosnia and Herzegovina). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month. 

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Bosnia and Herzegovina:

Everything you should know about using an EOR in Bosnia and Herzegovina

Are you considering expanding your business to Bosnia and Herzegovina? If so, you may be wondering about the best way to hire employees in this country. One option that you may have heard of is using an Employer of Record (EOR). In this post, we'll break down what an EOR is, how it works in Bosnia and Herzegovina, and why you might want to consider hiring independent contractors instead.

What is an EOR?

An EOR is a third-party company that acts as the employer of record for your employees. This means that the EOR takes care of all the administrative tasks associated with hiring and managing employees, such as payroll, taxes, and compliance with local labor laws. As the client company, you still have full control over your employees' day-to-day work and responsibilities.

How do EORs work in Bosnia and Herzegovina?

In Bosnia and Herzegovina, there are specific legal and regulatory conditions that must be met in order to use an EOR. For example, the EOR must be registered with the relevant authorities and must comply with all local labor laws. Additionally, the EOR must have a local presence in Bosnia and Herzegovina, which can be a challenge for foreign companies.

Is there a way to skip using an EOR?

Given the legal and regulatory conditions specific to Bosnia and Herzegovina, hiring independent contractors may be a more viable option for your business. Independent contractors are not considered employees, so you do not need to worry about complying with local labor laws or setting up a local presence. Additionally, hiring independent contractors can be more flexible and cost-effective, as you can hire them on a project-by-project basis and do not need to provide benefits or pay taxes on their behalf.

However, it's important to note that there are still legal and regulatory requirements that must be met when hiring independent contractors in Bosnia and Herzegovina. For example, you must ensure that the contractor is registered with the relevant authorities and that you have a valid contract in place.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

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