SparkWell Guidance for Setting Up A New Employee

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Onboarding an employee through Deel, Anti Entropy's Employer of Record

Who this is for:

SparkWell projects that have decided to hire an employee and need to onboard them through Anti Entropy's employer of record, Deel.

SparkWell hires project employees through Deel, an employer of record (EOR). This article explains how the EOR works, what benefits to expect, and the steps to onboard your new hire.

How an employer of record works

An employer of record (EOR) is a company that legally employs a worker on another organization's behalf. The EOR handles payroll, tax withholding, benefits, and local employment compliance.

Deel is a global HR and payroll platform that offers EOR services in many countries. SparkWell uses Deel because it enables projects to hire employees quickly, compliantly, and internationally without setting up a legal entity or payroll in each location.

Benefits and total employee cost

Project employees receive a basic benefits package through Deel, which typically includes:

  • Health insurance
  • Dental insurance
  • Vision insurance
  • Life insurance
  • Retirement plan

SparkWell offers basic benefits only because every employee, across all projects, must be offered the same package. A richer package for one project would raise costs for every project and affect other founders' budgets. Employees can opt in to add-on benefits through Deel, paid for with a contribution from each paycheck.

Budget for the full cost

Benefits and employer taxes add to the cost of each hire. An employee with a 120,000 USD salary may cost closer to 140,000 USD per year. Work with your Program Manager to budget for the full amount before you make an offer, or use Deel's Employee Cost Calculator to get a sense of budgetary needs

Steps to onboard an employee

  1. Confirm the role is employment. Review Understanding employment misclassification and Alternatives to hiring an independent contractor to confirm the person should be an employee, not a contractor.
  2. Contact your Program Manager before entering negotiation. Send the intended salary and the employee's work location to your Program Manager, who can confirm which benefits are available through Deel in that location.
  3. Negotiate the offer. Agree on salary, role, and start date with your new hire, using the benefits and cost information from your Program Manager.
  4. Request the Employee Onboarding Form. Ask your Program Manager or the Operations Manager for the form, then complete it to start onboarding through Deel.

Once you submit the form, your Program Manager will confirm next steps and timing for the employee's start.