What is a global Professional Employer Organization (PEO)?

A global PEO is an organization that allows companies to hire workers in other countries while acting as the legal employer. The partnering company retains decision-making authority over these workers. The global PEO handles payroll, payments, and tax requirements, offering flexibility for companies to hire abroad without the need to establish a legal entity.

How does a global PEO differ from a standard PEO and an Employer of Record (EOR)?

Here are the key differences:

Professional Employer Organization (PEO): A PEO typically handles HR, payroll, and employment tasks on a local scale. Companies enter a co-employment agreement with a PEO, where the PEO oversees employment-related functions while the company manages daily operations.

Global PEO and Employer of Record (EOR): These terms are often used interchangeably. In this arrangement, a global expert alliance recruits and manages workers in a different country on behalf of a company. The EOR or Global PEO becomes the legal employer, assuming full legal liability for any issues.

What is the general process for partnering with a global PEO?

The process typically involves these steps:

• Researching global PEO options based on coverage, quality, and reputation. Scheduling an initial consultation to determine if the global PEO aligns with your goals. Conducting thorough background checks. Negotiating a service level agreement (SLA) that outlines partnership terms, responsibilities, performance metrics, and more.

What should I consider when choosing a global PEO?

When selecting a global PEO, consider the following factors:

• Compliance Expertise: Ensure the global PEO understands the country's compliance requirements and stays updated on regulatory changes affecting employment and payroll.
• Security and Privacy: Trust is crucial when sharing employee and company data. Choose a global PEO with strong data protection measures to safeguard against hacking and data breaches.
• Flexibility and Scalability: If you plan to expand your operations in the partner country, ensure the PEO can accommodate your growth and expansion needs.