How do foreign companies hiring in Japan handle payroll and tax compliance without a local entity

I am an English speaking resident in Japan and recently received interest from an overseas tech company about a remote role. Instead of opening a Japanese entity, they mentioned the possibility of hiring through an Employer of Record. From what I understand, this means the EOR becomes the legal employer in Japan and manages payroll, social insurance, and tax withholding while the overseas company directs the work.

I have seen this model used in other countries through providers like Wisemonk, which focus on handling local compliance on behalf of foreign companies. I am trying to better understand how this typically works in Japan at a high level, especially regarding shakai hoken enrollment, income tax withholding, and year end tax adjustments.

I am not looking for personalized tax advice, just general insight into how these arrangements function in practice here. Has anyone in Japan worked under an EOR structure? Did it feel similar to being employed by a domestic company from a payroll and benefits perspective?