Service Models
Who is the employer of record in staff augmentation?
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In staff augmentation, the staffing agency is the employer of record—not you.
How it works:
•Agency signs employment/contractor agreements with developers
•Agency handles payroll, taxes, benefits, compliance
•Agency invoices you a single monthly rate per developer
•You manage the developer's daily work as if they were your employee
What this means for you:
•No need to set up legal entities in the developer's country
•No payroll administration or tax compliance burden
•No direct employment relationship = reduced legal risk
•One invoice per month vs managing multiple contractors
What the agency handles:
•Salary payments (often in local currency or crypto)
•Benefits (health insurance, PTO, equipment)
•Local labor law compliance
•Tax withholding and reporting
•Termination procedures if needed
Your responsibilities:
•Day-to-day work management
•Project direction and feedback
•Integration into your team processes
•Performance expectations
This structure is why staff augmentation is popular for international hiring—you get the talent without the administrative complexity of being an employer in multiple countries.
Providers like BEON.tech serve as the employer of record across all LATAM countries.
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