How to Convert Contractors to Employees in Taiwan: A Step-by-Step Guide
Table of Contents
Key Takeaways:
- Understanding the differences between contractors and employees in Taiwan
- Step-by-step process for converting contractors
- Employer of Record (EoR) solutions for businesses without a local entity
We’re here to help you on your journey to hire, manage and pay.
Without an Entity: Using an Employer of Record (EoR)
If your business doesn’t have a legal entity in Taiwan but still wants to convert contractors to employees, you may feel that setting up an entity is your only option. However, this can be both time-consuming and costly. An Employer of Record (EoR) offers a solution that allows businesses to legally employ workers in Taiwan without the need for a local entity.
What is an Employer of Record (EoR)?
An EoR is a third-party service provider that becomes the legal employer of your workforce in Taiwan. The EoR handles all legal employment responsibilities, including tax reporting, social insurance contributions, and employee benefits, while your business retains control over day-to-day tasks and management.
How an EoR Can Assist with Contractor Conversions:
- Compliance: The EoR ensures that all legal obligations are met, including taxes, social security, and benefits.
- Cost Savings: Using an EoR eliminates the need to set up a local entity, which can be expensive and time-consuming.
- Fast Onboarding: EoRs have local expertise and can quickly onboard employees, ensuring that the contractor-to-employee conversion process is seamless.
- Reduced Risk: The EoR assumes all legal risks associated with employment, allowing businesses to focus on operations without worrying about non-compliance or penalties.
How AYP Can Help
At AYP, we specialize in helping businesses navigate complex labor laws and compliance requirements across Asia, including Taiwan. Our Employer of Record (EoR) services allow businesses to legally hire and convert contractors to employees without the need for a local entity. We handle all employment-related tasks, from tax reporting and social security to benefits administration and employee onboarding.
Why Choose AYP?
- Expertise in Taiwanese Labor Laws: Our team is well-versed in the local labor regulations, ensuring that your business remains compliant at all times.
- Fast and Efficient Onboarding: We take care of the entire process, from drafting compliant contracts to registering employees with Taiwan’s social security systems.
- Cost-Effective Solutions: By using our EoR services, businesses can avoid the costs associated with setting up and maintaining a legal entity in Taiwan.
- Ongoing Support: We provide continuous support to ensure that your business is always in compliance with local regulations.
