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If you already have a legal entity in the country where you’re hiring, you don’t need an Employer of Record. Register the entity with Shor as a subsidiary, and Shor runs payroll on top of it: gross-to-net calculation, statutory filings, and tax remittance, in the same dashboard as the rest of your team. This is called managed payroll, and it costs 50–50–60 per employee per month instead of the 299–299–449 you’d pay for EOR, because you’re already carrying the entity.

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Managed Payroll vs. EOR

The difference that matters most: who is the legal employer. With EOR, it’s Shor. With managed payroll, it’s you.
Managed payroll is the cheaper option, but it assumes you’ve already done the expensive part: incorporating locally and keeping that entity in good standing. If you don’t have an entity in the country and don’t want to set one up, use EOR instead.

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Where Managed Payroll Is Available

Managed payroll runs in 15 markets today. It requires that Shor can operate the full payroll lifecycle locally, so it covers fewer countries than EOR.

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Tier A Markets: $60 / Employee / Month

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Tier B Markets: $50 / Employee / Month

If your country isn’t listed, you can still hire there through EOR where it’s supported, or book a call and we’ll tell you where it sits on the roadmap. See Global Coverage for the full country directory.

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Setting Up a Subsidiary

Before you can hire onto your own entity, register it in Shor.
1

Open Subsidiaries

Go to Settings → Company → Subsidiaries and click Add subsidiary. Only admins can add or edit subsidiaries; other roles can view them.
2

Enter Entity Details

Legal name and Country are required. The country list only shows markets where managed payroll is available.Optionally add the legal structure, incorporation date, registration number, and tax ID. Fill these in if you have them — they feed the statutory filings Shor makes on your behalf.
3

Add the Registered Address and Phone

Both are used for statutory filings when payroll runs under this subsidiary. Add a local contact number that payroll and compliance follow-up can reach.
4

Complete Payroll Setup

Open the subsidiary and work through the Employer Requirements section. These are the statutory registration details your entity needs on file to run payroll — employer registration numbers, social security or pension scheme identifiers, and similar. Exactly which fields appear depends on the country.This step blocks hiring, so it’s worth doing as soon as the subsidiary is created rather than mid-contract.
You can’t change a subsidiary’s country after it’s created. Everything else stays editable. If you registered an entity in the wrong country, add a new one and contact support@shorpay.com.

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Hiring onto Your Subsidiary

Once the subsidiary is active, hiring works like a normal employee hire with two differences: you pick who runs payroll, and you supply the employment agreement.
1

Start the Add Flow

From Talent → People, click Add person and pick Employee, then set the country of employment.
2

Choose the Payroll Employer

A Payroll Employer choice appears with two options: your subsidiary, or Shor EOR. If you have more than one subsidiary in that country, pick which one.This option only shows up when you have an active subsidiary in the same country as the employee. If you don’t see it, check that the subsidiary is registered in that exact country and that managed payroll is available there.
3

Set Compensation and Terms

Salary, pay frequency, role, and start date work exactly as they do for EOR employees. See Hiring Employees for the detail on each field.The cost estimate shows a Managed payroll service fee instead of the EOR fee, alongside the employer contributions calculated for that country.
4

Upload the Employment Agreement

Because your entity is the legal employer, Shor doesn’t generate the contract. Upload the employment agreement your entity is using, already signed. Shor stores the PDF and asks the employee to accept it in-app.
5

Complete Employer Requirements and Send

The summary shows any outstanding Employer Requirements for the subsidiary and the worker. You can’t send the agreement until they’re complete. When everything’s green, click Send for acceptance.

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What the Employee Does

Your new hire receives an invitation to:
  1. Create their Shor account
  2. Complete identity verification
  3. Provide the personal, tax, and payroll details their country requires, including their bank account
  4. Accept the employment agreement you uploaded
The one difference from EOR: the employee accepts your agreement rather than signing a Shor-generated contract electronically. The legal agreement is between them and your entity, so Shor records acceptance rather than acting as a party to it. Once they finish onboarding, they appear as an active worker on your People list and their payments surface on the Payroll page on their pay schedule, alongside your contractors and EOR employees.

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Running Payroll

After onboarding, there’s nothing special to do. Employees on your subsidiary appear on the same Payroll page, fund from the same account, and use the same local payment rails as everyone else on Shor. Payslips are generated the same way. Shor calculates gross-to-net for the country, withholds employee contributions, and handles the statutory filings and tax remittance under your entity’s registrations.

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Billing

Managed payroll seats are billed per employee per month, separately from EOR and contractor seats.
  • Your invoice shows them as “Y Managed Global Employees in ”, grouped by country
  • A partial first month is charged as a one-time item, then the seat moves onto your regular monthly cycle
  • A seat is counted while the contract is active, on the same rules as every other worker type
See Billing for how the full invoice is put together, and Pricing for the current rates.

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Common Questions

There’s no in-place switch, because the legal employer changes. In practice it means ending the EOR employment and hiring the person onto your entity under a new agreement, which local labor law may constrain. Talk to support@shorpay.com before you start so we can sequence it without a gap in pay.
Yes. The Payroll Employer choice is per contract, so you can run some employees on your subsidiary and hire others through Shor EOR in the same market.
Yes. Every employee on your entity needs a signed agreement uploaded, because your entity is the party to it. Most companies reuse one localized template per country.
Three things need to be true: the subsidiary is Active, it’s registered in the same country as the employee, and managed payroll is available in that country. The Payroll Employer choice is hidden entirely when none of your subsidiaries qualify.
Admins can add and edit them. Other roles can view subsidiary details but can’t change them. See Inviting Your Team for roles.

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Next Steps

Hiring Employees

The full employee hiring flow, including EOR.

Global Coverage

Every country Shor supports, by model.

Settings

Where subsidiaries live in your workspace.

Billing

How managed payroll seats appear on your invoice.