I’ve never answered this question publicly before, so I wanted to share it with you.
Hi John!
I came across your content today, and am glad to have found it. I’m currently trying to figure out if it makes sense to get an EOR for my Filipino worker, as she is working 40hr/ week. She has also requested HMO, which I am unfamiliar with… do you have any articles/ recommendations on how to go about Employee (through EOR), or if hiring as a contractor always works?
Samuel
For those who don’t know, EOR means Employer of Record.
Samuel is asking because he’s wondering if the work situation makes his Filipino VA an employee.
The answer is NO. You CANNOT make this person an employee.
The Philippines government will not allow it unless you have a legal entity in the country. Otherwise, they’ll still be independent contractors.
Paying someone to act as an EOR for you is unnecessary and an extra cost/hassle that doesn’t benefit you.
You can pay them whatever or however you want, and they’re still considered an independent contractor.
You can require her to work whatever hours you want (within reason)… still an independent contractor.
Give any benefits you want… still an independent contractor.
You can get an HMO for your OFS. Here’s how we do it for our team:
https://johnjonas.com/how-we-provide-health-insurance-to-our-ofs/
Here’s our treatment on benefits:
OnlineJobs.ph/benefits
and on taxes
OnlineJobs.ph/taxes
In the end, as far as we’ve ever been able to tell (dozens of accountants and attorneys), getting an EOR for your VA is a fear-mongering tactic of companies that want you to pay them for something you don’t need.
Your Filipino VA is an independent contractor. Period. No EOR needed.
John