As businesses expand across borders, payroll becomes more complex—and the terminology more confusing. Two models often come up: EOR (Employer of Record) and Payroll Outsourcing. They sound similar. But they solve very different problems. The Core Difference The simplest way to understand it: EOR = Legal employment solution Payroll Outsourcing = Operational payroll solution With EOR, the provider becomes the legal employer. With payroll outsourcing, you remain the employer—jus