When you engage an independent contractor, someone has to classify them, contract them, and pay them compliantly. An agent of record does all three on your behalf, and takes on the risk that comes with it.
Key facts
- An agent of record engages and pays independent contractors on a company's behalf and takes on their classification and compliance.
- AOR is the independent-contractor counterpart to an employer of record (EOR), which covers employees.
- Together, AOR and EOR let one company engage any worker type through a single vendor.
Contents
- What is an agent of record?
- How an AOR works
- AOR vs EOR
- When to use an AOR
- Frequently asked questions
- Engaging contractors through an AOR
What is an agent of record?
An agent of record (AOR) is a third party that formally engages and pays independent contractors on a company's behalf, taking on classification and compliance for that contractor relationship. The contractor does the work for the client; the AOR holds the compliant engagement.
How an AOR works
- Classification. The AOR determines and documents the contractor's status.
- Contracting. It puts the compliant contract in place.
- Payment. It pays the contractor, handling tax documentation and currency.
- Risk. It carries the classification and compliance responsibility for that engagement.
AOR vs EOR
An employer of record legally employs W-2-style employees. An AOR engages independent contractors. The difference comes down to worker type: employees go through an EOR, contractors through an AOR.
Key takeaway: If you engage both employees and contractors across markets, you want AOR and EOR under one roof, so you never switch vendors when a worker's status changes.
When to use an AOR
Best practice: Use an AOR when you want to engage a genuine independent contractor and move classification risk off your desk. Worksome acts as AOR alongside its EOR service, in 150+ countries.
Frequently asked questions about agents of record
What is the difference between an AOR and an EOR? An AOR engages independent contractors; an EOR employs employees. The choice follows the worker's classification.
Does an AOR classify the worker? Yes. Taking on classification and standing behind it is a core part of what an AOR does.
Can one provider be both AOR and EOR? Yes. Worksome runs both, so you can engage contractors and employees through one vendor.
Engaging contractors through an AOR
An AOR turns a risky contractor engagement into a compliant one and takes the classification burden with it. Worksome acts as AOR and EOR under one system, across 150+ countries.
This page is general information, not legal advice. Classification rules vary by country and change over time.
Related: Employer of Record (EOR), Worker classification, Independent contractor (IC), Contractor payments.