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So you want to hire someone in Brazil. Problem is, your company is located somewhere else.
If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Brazil, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.
But there’s a catch: EOR solutions in Brazil are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Brazilian entity, they’re rarely cheap or fast.
The good news? There’s another way to hire remote workers in Brazil, and it doesn’t involve forking out huge amounts of money for an EOR.
The solution: Hire your teammates in Brazil as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.
We built Thera to help you make contractor hires, in 150+ countries (like Brazil). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.
It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Brazil:
Are you considering expanding your business to Brazil and hiring employees? If so, you may be wondering about the best way to manage payroll and compliance with local regulations. One option is to use an Employer of Record (EOR) service, which can handle these tasks for you. In this post, we'll explore everything you should know about using an EOR in Brazil, including any legal or regulatory conditions specific to the country. We'll also make the case for why hiring an independent contractor might be easier than using an EOR.
An EOR is a third-party service provider that acts as the employer of record for your employees in a foreign country. This means that the EOR is responsible for payroll, taxes, benefits, and compliance with local labor laws. As the client, you retain control over the day-to-day activities of your employees, while the EOR handles the administrative tasks.
Brazil has a complex and constantly evolving regulatory environment, which can make it challenging for foreign companies to navigate. Some of the key legal and regulatory conditions to be aware of when using an EOR in Brazil include:
- Labor laws: Brazil has strict labor laws that govern everything from working hours to termination procedures. An EOR can help ensure that you are in compliance with these laws, but you will still need to be aware of your obligations as an employer.
- Taxes: Brazil has a complex tax system, with different rates and requirements depending on the type of business and the location. An EOR can handle tax withholding and reporting, but you will still need to understand your tax obligations and ensure that you are paying the correct amount.
- Social security contributions: In Brazil, both employers and employees are required to make social security contributions. An EOR can handle these contributions, but you will still need to ensure that you are paying the correct amount and complying with all reporting requirements.
Given the complexity of the legal and regulatory environment in Brazil, you may be wondering if there is an easier way to hire employees. One option is to hire independent contractors instead of employees. While this approach has its own set of challenges, it can be simpler in some ways. For example:
- Fewer legal and regulatory requirements: When you hire an independent contractor, you are not subject to the same labor laws and tax requirements as when you hire an employee. This can make it easier to get started in Brazil without having to navigate a complex regulatory environment.
- Lower costs: Hiring an independent contractor can be less expensive than hiring an employee, since you do not have to pay for benefits or comply with labor laws. This can be especially useful if you are on a tight budget.
We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.
Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.
If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.
With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.
Sound interesting? Click here to book a demo and see the platform firsthand
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