Hire talent abroad with Professional Employer Organisation (PEO)

PEO stands for Professional Employer Organisation. A PEO company provides human resource management services to other companies. These services typically include taking responsibility for payroll, complying with labour laws, processing social security and tax payments, administering benefit plans, and ensuring compliance with occupational health and safety regulations. However, client companies retain control over the day-to-day activities of their employees and PEOs can often be integrated into their existing management structures.

The PEO takes care of human resource management, payroll, tax accounting, employee supervision and labour procurement. The PEO hires the employees, runs payroll and handles social security and other duties. However, the company retains control over the employees’ day-to-day work tasks and strategic decisions related to the company’s objectives.

PEOs typically handle all aspects of payroll and taxes for international employees, including withholding and remitting payroll taxes, generating paycheques and processing employee expenses. They ensure compliance with local tax laws and regulations and stay up-to-date with any changes in the tax code. PEOs also help clients navigate other compliance requirements, such as benefits and social security contributions.

The cost of using a PEO varies depending on the services provided and the size of the business. PEO fees are typically calculated as a percentage of payroll, with rates ranging from 2-12%. Some PEOs may also charge additional fees for certain services or for implementation.

PEOs take data security very seriously, and they use various security protocols and technologies to protect employee data. This may include encryption, firewalls, and access controls. Additionally, PEOs may undergo regular security audits to ensure that their systems and processes meet industry standards.

EOR (Employer of Record) is a service provider that acts as the legal employer of a company’s international employees. EORs take on responsibilities such as managing payroll and taxes, providing benefits and compliance with local employment laws.

How does an EOR differ from a PEO? In contrast, a PEO works as a co-employer, with the client company retaining control over hiring and day-to-day management. EORs provide more control and flexibility for the client company in terms of hiring and managing its employees, whereas PEOs provide more streamlined administrative support. 

WorkMotion is an EoR, which is similar to PEOs but better. We help you manages everything that regards your international employees: from legal issues to social contributions. At the same time, it also simplifies your company’s global HR management and grants seamless onboardings.