Employment Models

Direct employment vs Employer of Record, and what each model collects at payroll

Cadana supports two employment models. Set compInfo.employmentModel: "eor" when creating a person — or when updating compensation via PUT /v1/persons/{personId}/jobInfo — to employ the worker through Cadana’s Employer of Record. Omit the field for direct employment.

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What the Payroll Debit Collects

The employment model determines what the payroll debit — the amount collected from your business account, returned by GET /v1/payrolls/{payrollId} — includes:

	Direct employment	Employer of Record
compInfo.employmentModel	omitted	"eor"
debit collects	Net pay + fees	Gross pay + employer contributions
Income tax & statutory deductions	Calculated and shown on the payslip, not collected	Collected
Invoice line categories	NET_PAYROLL + fee items	GROSS_PAYROLL + EMPLOYER_CONTRIBUTION

For an identical employee earning ₹400,000/month gross, funded in USD at the same FX rate, the direct debit is ≈ $3,330 while the EOR debit is ≈$4,275.

After the payroll completes, GET /v1/invoices/{invoiceId} breaks the debit into the line categories above.

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Creating an EOR Employee

Payroll runs identically for both models — see Pay Workers via Payroll.

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Next Steps

Onboard Workers

Create Person records and configure compensation

Payroll Lifecycle

Status flow, webhooks, and multi-currency handling