How to stay compliant

Employer-of-Record (EOR) in the Dominican Republic: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in the Dominican Republic: Do You Need One?

So you want to hire someone in the Dominican Republic. 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 the Dominican Republic, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.  

But there’s a catch: EOR solutions in the Dominican Republic 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 entity, they’re rarely cheap or fast.

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

The solution: Hire your teammates in the Dominican Republic 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 the Dominican Republic). 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 the Dominican Republic:

Everything you should know about using an EOR in the Dominican Republic

Are you considering hiring independent contractors in the Dominican Republic? As a business owner or manager, you may be wondering what the best option is for your company. One option is to use an Employer of Record (EOR) service, which can help simplify the process of hiring and managing employees in a foreign country. In this post, we'll break down everything you need to know about using an EOR in the Dominican Republic, including any legal or regulatory conditions specific to the country. We'll also explore whether hiring independent contractors might be a better option for your business.

What is an EOR?

An EOR is a service provider that acts as the legal employer of your employees in a foreign country. This means that the EOR takes care of all the administrative tasks associated with hiring and managing employees, including payroll, taxes, benefits, and compliance with local labor laws. As the client company, you retain control over the day-to-day work of your employees, while the EOR takes care of the legal and administrative aspects of employment.

Legal and regulatory conditions in the Dominican Republic

When using an EOR in the Dominican Republic, it's important to be aware of the legal and regulatory conditions that apply to employment in the country. Some key considerations include:

- Labor laws: the Dominican Republic has a comprehensive labor code that governs employment relationships, including minimum wage, working hours, and termination procedures. Employers must comply with these laws when hiring and managing employees in the country.

- Social security: Employers in the Dominican Republic are required to contribute to the social security system on behalf of their employees. This includes contributions for health insurance, retirement benefits, and other social programs.

- Taxes: Employers must also withhold and remit income tax on behalf of their employees in the Dominican Republic. This can be a complex process, as tax rates and rules can vary depending on the employee's income level and other factors.

Why hiring talent as contractors might be your best option

While using an EOR can be a convenient way to manage employees in a foreign country, it's not always the best option for every business. Depending on your needs and circumstances, hiring independent contractors might be a better choice. Some reasons to consider hiring independent contractors in the Dominican Republic include:

- Flexibility: There’s less red tape associated with hiring contractors, meaning it’s easier to onboard people. EORs are notoriously expensive and slow — whereas you can get contractors up and running, usually, within a few minutes or hours.

- Reduced administrative burden: Contractors and employees are typically subject to different labor laws. Hiring contractors often means you can avoid a lot of the expensive administrative overhead you’d be on the hook for if you were hiring employees.

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.

If you want to hire 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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