An Agent of Record is a person or company that performs work for your company as a contractor, not as an employee. Their core responsibilities are to complete the administrative tasks that you assign to them.

They function like a helper who takes over some of your tasks and completes them with your permission and resources. That’s it.

What an Agent of Record Includes

An Agent of Record can help coordinate a wide range of tasks in your company, but only administrative tasks. Their tasks can be divided into two types: internal support, such as handling paperwork, and coordination with external authorities. 

Paperwork & Documentation

An Agent of Record helps in paperwork and documentation required between an employer and employee. These include, but are not limited to, contracts, employee forms, and document filings. 

Payroll Coordination

Handling salary records is not an easy task, and even a small inaccuracy can lead to legal penalties. So, an agent of record validates the payroll, tracks taxes, and verifies the salaries.

Benefits Administration

Each employee role has its own benefits provided by the company. AORs also help manage these benefits and provide support for enrollment, vendor coordination, and policy management. 

Compliance Filings

There are multiple documents that must be filled out and submitted to different departments. AORs reduce the burden by helping with government submissions, regulatory reporting, and legal compliance.

HR Support & Guidance

HR personnel have to manage employee queries about work, policies, and leave. When the number of employees is high and the HR department is small, an AOR comes into play.

Insurance Coordination

When an Agent of Record enters into insurance coordination, they help with policy liaison, claims support, and track renewals. 

How an Agent of Record Works

The role of an AOR is like a helper and coordinator. They use your company, identity, and resources to complete assigned tasks and do not make independent decisions. They act only under your instructions. Here is how they work:

Acting on Your Behalf

An AOR acts on your behalf. This means they do not have their own local entity or legal structure to complete your tasks and rely on your company when helping you. They execute tasks, follow instructions, and represent your company.

Coordinating with Authorities

They are experts in government filings, local regulations, and official communications. This expertise ensures the process is completed with minimal errors.

Supporting HR Processes

Once you partner with an AOR, they first complete your assigned internal tasks, then coordinate with authorities, and then support HR processes. This support includes document collections, onboarding, and offboarding. 

Following Company Instructions

AORs do not make decisions and do not create their own rules or instructions when executing client tasks. They adhere to compliance requirements and follow administrative instructions.

Maintaining Legal Oversight

Although AORs have multiple tasks, their core responsibility is maintaining legal oversight. They monitor risks, review policies, and perform regular oversight.

Example of an Agent of Record

You have a company with twenty employees in different countries, and you also have an on-site team. Although you have seven members in an administrative department, there is still a lot of work to be done. 

In this situation, you partner with an AOR, and they start completing your pending administrative tasks. So, it is simple.