Key Questions to Ask EOR Vendors
Choosing an Employer of Record (EOR) is a compliance and operations decision. The right partner becomes the legal employer, manages payroll compliance, wage reporting, benefits, and worker classification—so your staffing agency scales without risk. Use this checklist to build a precise, comparable RFP.
How to Use This Checklist
- Group questions by topic and assign weights (e.g., compliance 30%, tech 20%, pricing 20%, service 15%, insurance 10%, extras 5%).
- Ask for short, evidence-based answers (docs, sample reports, SLAs, certificates).
- Score responses on impact and proof, not promises.
Compliance & Legal Employer
- How do you determine worker classification (W-2 vs 1099)? Provide your methodology and example determinations.
- Which federal, state, and local employment laws do you monitor? How fast do you implement rule changes?
- Do you assume legal employer responsibilities in every state we operate?
- What support do you provide during audits or wage-and-hour investigations?
- Show an end-to-end compliance workflow (from onboarding through offboarding).
Payroll & Tax Administration
- Which pay frequencies and funding models do you support?
- How do you handle multi-state payroll taxes, wage reporting, and SUI/SUTA?
- What is your process for year-end W-2 and 1099? Include timelines and error correction.
- Do you manage garnishments, deductions, and fringe benefits taxation?
- Share payroll accuracy rates, cutoff times, and filing SLAs.
Benefits & Insurance
- What health, dental, vision, and retirement options are available to assigned workers?
- How do you manage ACA eligibility, measurement periods, and reporting?
- Provide workers’ comp classes, states covered, and experience modifier details.
- List insurance coverages and limits (general liability, professional, cyber, auto, umbrella).
- Can you issue COIs by client, location, and contract?
Onboarding & HR Ops
- Do you handle I-9 verification, e-Verify, and background checks? Share turnaround times.
- Describe digital onboarding packets, document storage, and audit trails.
- How are policy acknowledgments and training delivered and tracked?
- What is your process for rate changes, assignments, and terminations?
Technology & Integrations
- Do you offer an API or native integrations with ATS, HRIS, and accounting systems?
- Provide a data model overview: workers, jobs, timesheets, payroll, invoices, GL.
- Can we enable SSO, role-based access, and approval workflows?
- What export formats are available (CSV, JSON, SFTP)? How often can we sync?
- Show sample dashboards for payroll compliance and wage reporting.
Data Security & Privacy
- Which standards do you follow (SOC 2, ISO 27001)? Provide current attestations.
- Detail encryption at rest and in transit, key management, and secrets handling.
- How do you manage access logging, anomaly detection, and incident response?
- State your data retention, deletion, and data subject request processes.
- Describe vendor risk management and annual pen testing.
Pricing & Contracts
- Explain your pricing model (markup %, per-worker, hybrid). What is included vs. pass-through?
- Are there minimums, reserves, or pre-funding requirements?
- Provide a sample contract, indemnification language, and limitation of liability.
- How do you handle rate changes, rebates, and volume discounts?
- What are termination terms, data return, and transition support?
Service & SLAs
- Describe the account team, hours, and escalation path.
- Provide response and resolution SLAs for payroll, compliance, and tech issues.
- Share implementation timeline, milestones, and training plan.
- Offer references for multi-state staffing programs similar to ours.
Coverage & Scalability
- Which states and worker classes are supported today? What is your expansion roadmap?
- Time to open a new state or location? Any constraints by industry?
- Peak capacity: placements per month you can onboard with current infrastructure.
Vendor Scorecard Template
| Category | Weight | Vendor A | Vendor B | Vendor C |
|---|---|---|---|---|
| Compliance | 30% | |||
| Technology | 20% | |||
| Pricing | 20% | |||
| Service | 15% | |||
| Insurance | 10% | |||
| Extras | 5% |
Score vendors by category, multiply by weight, and sum to compare.
Red Flags Checklist
- Vague answers on worker classification or payroll accuracy.
- No evidence of SOC 2 or clear security practices.
- Slow payroll cutoffs or unclear filing SLAs.
- Limited state coverage or long timelines to open new states.
- One-size pricing with hidden add-ons or unclear pass-through costs.
Bottom Line
A strong EOR RFP separates marketing from execution. Prioritize payroll compliance, worker classification, technology fit, coverage, and service. Ask for proof, verify it, and score consistently. The right partner will give your recruiters speed while your back office stays audit-ready.