Employer On Record (“EOR”) model

EOR Model

Our Approach

Framework

Documentation and mechanics of the arrangement would be structured to reflect that Vedantic Technologies Private Limited (“VTPL”) will render Services to you with the help of the employees hosted on its payroll.

Mechanics
  • Step 1: We will issue an employment letter to the employees, and they will be on our payroll.
  • Step 2: The employees would work exclusively for you. They will be under complete supervision and direction of you. To achieve this, we will execute a Service contract with you.
  • Step 3: On a monthly basis, you will transfer the funds for payroll and a fixed fee in the form of “Services fee” and we will remit the payroll to the employees.
Documentation
  • Services contract to be executed between you and VTPL.
  • Employment contract to be executed between the employees and VTPL.
  • Existing employment contract, if any, between you and the employees should be terminated.

Responsibilities

VTPL
  • Mitigate Permanent Establishment risk
  • Build Employment Contracts
  • Offer Social Security (Provident Fund) and Health Insurance Benefits
  • Manage Monthly Payroll
  • Assume Employer Liability
  • Track Employee Vacation
  • Offboard & Terminate Employees
  • Remit Payroll Taxes & Contributions
  • Supervise Local Audits & Assessments
Your / Employee
Your Responsibilities
  • Approve Employment Contracts
  • Manage Workers day to day
  • Pay consolidated invoices
Employee Responsibilities
  • Enter Time-off Requests
  • Submit Expenses
  • View Payslips
  • Submit tax declarations

Inclusions in scope

In addition to hosting the employees, our service would include the following:

Employee related services:
  • Assistance in opening bank account of the employee.
  • Assistance in obtaining Tax ID (Permanent Account Number) for the employees.
  • Personal Tax return filings for an employee.
  • Ongoing tax advisory services to the employees.
Other compliances:
  • Monthly payroll withholding tax computation, payment, and related compliance (including filing of payroll withholding tax return).
  • Labour law related compliances (including professional tax payment on behalf of the employees).
  • Social security (Employee Provident Fund) payment and related compliances, if opted by the employees.
  • STPI Act / foreign exchange management Act related compliances including filing of SOFTEX forms for the Services / IT services invoice fee received from you.
  • Ongoing tax advisory services (including payroll structuring) to you.
Rent / Expense payments:

If required, you can route the expense payments in India through us. Our service in this regard would include execution of agreements with vendors on your behalf.

Our Fee - One monthly invoice with no hidden fees

Costs related to employment:
Employee salary

Your invoice will also include your worker's monthly salary paid through VTPL.

Employer costs

Employer costs reflect the costs of employment outside of what VTPL charges. This includes taxes mandated by local governments, social security benefits (like Employee Provident Fund) benefits, and bonuses.

VTPL costs:
One-time setup fee

This fee is the cost to create your worker's local employment contract and set-up in country payroll and tax registration.

Monthly service charge

There will be one monthly fee, per individual worker. Depending on worker salary, this will be a minimum or a percentage.

NO ADDITIONAL FEES
We do not charge
  • Writing fees
  • End of year tax filing fees
  • Tax withholding fees
  • Professional fees
  • Platform fees
  • Transfer termination fees
  • Offboarding fees or leaver fees
Workers are paid in their local currency.

Your monthly invoice reflects the rate at which we purchase the local currency—we do not markup the FX rate or apply a foreign transaction fee. This means your invoice will fluctuate based on currency fluctuations.