EOR vs AOR: employer of record or agent of record?
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An agent of record (AOR) costs $99 to $199 per contractor per month at Payoneer Workforce Management (Skuad) and Atlas, while an employer of record (EOR) costs $199 to $699 per employee per month plus employer contributions, according to provider pricing pages checked October 16, 2026. The AOR keeps the worker a contractor. The EOR makes them an employee.
If you searched for "AEOR", you most likely saw the two terms side by side on a provider site: AOR for contractors, EOR for employees.
An agent of record (AOR) is a provider that engages an independent contractor on your behalf under its own service agreement, checks that the arrangement qualifies as contracting, and pays the contractor, while an employer of record (EOR) hires the worker as an employee of its own local entity.
On this page
The difference in one table
| Question | AOR | EOR |
|---|---|---|
| Worker's status | Independent contractor (self-employed) | Employee |
| Legal employer | None. The AOR is the contracting party | The EOR's local entity |
| Contract the worker signs | Service agreement with the AOR | Employment contract with the EOR |
| Employer social contributions | None. The worker pays their own | Yes, billed to you at cost |
| Statutory leave, notice, severance | No | Yes, under local law |
| Who you direct | Deliverables, not working hours | Day-to-day work, like any employee |
| Main risk | Worker is reclassified as an employee | Termination cost and payroll errors |
| Published price | $99 to $199 per contractor per month | $199 to $699 per employee per month |
Prices from provider pricing pages (Skuad, Atlas, Pebl, Oyster), checked Oct 16, 2026.
AOR and contractor of record are two names for the same kind of service in global hiring. Atlas and Payoneer Workforce Management use AOR. Deel, Remote, Multiplier and Rivermate use contractor of record. Our contractor of record guide compares every published price and the indemnity terms. Note that in US insurance and benefits, agent of record means the broker assigned to your policy. That is unrelated.
Who is the employer, and who is liable
With an EOR, the provider's local company is the employer. It registers with the tax and social security offices, withholds tax, pays contributions and issues the employment contract. If the employee is dismissed, local notice and severance rules apply, and the EOR bills you for them. Remote calls severance a pass-through cost. Oyster bills "Transition Costs (including severance)". Multiplier charges a 15% penalty on the final invoice if you contact the employee about termination yourself instead of going through it.
With an AOR, no one is the employer. The worker runs their own business and pays their own taxes and social security. The AOR's value is the classification check and the contract it signs with the worker. If a tax office or court later decides the person was an employee all along, back contributions, penalties and employee rights can follow. How much of that the AOR pays depends on its contract. Deel says its contractor of record product takes on classification liability. Remote publishes an indemnity of $100,000 per contractor and $1M in total on its CM Plus plan. Atlas charges $99 for a classification assessment and credits it if you sign up.
Neither model gives you a local company. If the worker negotiates or signs contracts for you, your business may have a taxable presence in that country regardless of the label. See permanent establishment risk for remote hires.
Providers that sell both, with prices
| Provider | AOR or COR per contractor | EOR per employee | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management (Skuad) | from $99 | from $199 | Mixed: "own and partner entities in 160+ countries" |
| Atlas | $199 | from $599 plus a country rate | "Owned and operated entities in 160+ countries" |
| Rivermate (sold as Contractor of Record) | from $149 | $319 to $639 | 38 owned entities, 180+ countries covered |
| Deel (sold as Contractor of Record) | $325 | $599 | Owned entities in 130+ countries, 150+ covered |
| Remote (sold as Contractor of Record) | $325 | from $599 | "100% owned entities" in 90+ countries |
| Multiplier (sold as Contractor of Record) | $400 | $459 to $499 | Claims owned entities in 160+ countries |
Source: each provider's pricing page, checked Oct 16, 2026. Monthly prices, before salary, employer contributions, FX and taxes. Atlas says its AOR price excludes taxes, FX and third-party fees.
Buying both from one provider makes a later switch easier: the same platform holds the worker's records when you convert them from contractor to employee. Compare EOR fees and deposits on our employer of record pricing page.
What one hire costs for a year
Take one person in Mexico paid the equivalent of USD 40,000 a year. Our Mexico data puts mandatory employer costs at 31.8% of base pay ($12,720), covering IMSS social security, INFONAVIT housing, the 15-day aguinaldo bonus, the 25% vacation premium and Mexico City's 4% payroll tax.
| Route | Pay | Employer costs | Provider fee per year | Total |
|---|---|---|---|---|
| Atlas AOR at $199 | $40,000 | $0 | $2,388 | $42,388 |
| Atlas EOR from $599 (before its country LES rate) | $40,000 | $12,720 | $7,188 | $59,908 or more |
| Skuad AOR from $99 | $40,000 | $0 | $1,188 | $41,188 |
| Skuad EOR from $199 | $40,000 | $12,720 | $2,388 | $55,108 |
Math: fee x 12; employer costs 31.8% x 40,000 from our Mexico country data (official sources: LFT, INEGI UMA 2026; some IMSS rates from secondary tables). Prices checked Oct 16, 2026. PTU profit sharing excluded.
The AOR route saves at least $17,520 at Atlas list prices ($59,908 minus $42,388). That saving is mostly the employer contributions and bonuses the worker does not get. A contractor who knows this will often ask for a higher rate. For the full Mexican rules, see hiring through an EOR in Mexico. For other countries, the employer cost by country index shows employer contribution rates side by side.
Which one to use
| The hire | Usually fits | Why |
|---|---|---|
| A designer delivering a fixed project over 3 months | AOR | Defined deliverable, own tools, own schedule |
| A developer working 40 hours a week on your product with no end date | EOR | Exclusive, ongoing, core work: the profile of an employee |
| A consultant who also bills other clients | AOR | Independent business with several clients |
| A hire who asks for paid leave, health cover or a pension | EOR | Only employees get statutory benefits |
| A person who needs a work permit sponsored by an employer | EOR | A contractor arrangement does not sponsor employment visas; Atlas lists visa sponsorship as an EOR extra |
| A salesperson who will sign deals for you abroad | Neither until you take tax advice | Contract authority can create a permanent establishment |
General guidance based on common classification factors. Local tests differ; check the rules in the worker's country.
Switching from AOR to EOR
- Decide before the relationship drifts. If the contractor now works set hours on core work for you only, convert rather than wait for a dispute.
- Ask for an EOR quote in that country. Atlas adds a country rate (its "LES rate") to the $599 platform fee, and Multiplier says about 11% of countries cost more, so the headline price may not apply.
- Budget the deposit. Oyster asks for at least one month of total service cost; Playroll asks for one month's salary. Others do not publish an amount.
- End the AOR agreement cleanly. Atlas lets you cancel the AOR any time before the next billing date. Check notice terms at other providers.
- Agree the employee terms. Salary, start date, probation and leave all follow local law once the person is an employee. Our guide to how an EOR works covers the onboarding steps.
Common mistakes
- Choosing AOR to save money on someone you manage like staff. The saving is the employer costs a court can order you to pay later.
- Reading AOR as a guarantee. Only Remote publishes an indemnity cap, and it sits on its CM Plus plan. Get the liability terms in writing.
- Forgetting the US rules apply at home. For US workers, the IRS control test and state ABC tests decide status. See our W-2 vs 1099 comparison.
- Using either for a staffing need. If you need someone to find the worker too, compare EOR vs a staffing agency.
For a ranked list of EOR providers with scores, see the best employer of record services.
Frequently asked questions
What does AEOR mean?
What is an agent of record in hiring?
Is AOR cheaper than EOR?
Who is liable if an AOR contractor is reclassified as an employee?
Is AOR the same as contractor of record?
When should I move a contractor from AOR to an EOR?
Sources (16)
- Atlas: Atlas pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (Skuad): Skuad pricing (checked Oct 16, 2026)
- Rivermate: Rivermate pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Deel: Deel employer of record (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Remote: Remote employer of record (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Multiplier: Multiplier EOR terms (effective Jun 1, 2026) (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Oyster: Oyster customer terms (version 2025-02-27) (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Camara de Diputados (Mexico): Ley Federal del Trabajo (checked Oct 16, 2026)
- INEGI: UMA 2026 (checked Oct 16, 2026)
- IRS: Independent contractor (self-employed) or employee? (last reviewed May 19, 2026) (checked Oct 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.