Although global employer organisations are rumoured to provide similar services more
consistently, global PEOs may still be able to assist with your international expansion.
As your business expands into new areas, foreign PEOs may be able to assist you with
legislative changes, company registration, and regulatory compliance.
Global PEO services may help you expand worldwide, but it is not a global employer
PEOs consolidate a range of worldwide HR obligations into a single service, but they do not
eliminate the need for international registration or related risk.
This essay is meant for small business owners that want to hire a PEO while entering
Your ambition to expand your business internationally may be on your bucket list, but your
goal may be dashed if you don’t do enough research. Here, foreign PEOs may be of
assistance. Even though some people confuse these third-party HR firms for another kind of
valuable international company, it is well known that they make reliable partners for
expanding into new locations. Find out all there is to know about PEOs, including their
What is the definition of a PEO?
Global PEO providers, a sort of HR outsourcing firm, provides your health insurance,
workers’ compensation, and other business insurance. It does this via a co-employment
model in which it assumes full responsibility for any HR responsibilities you delegate to it.
Small businesses like yours often employ PEOs to handle benefits, payroll, legal
compliance, and taxes.
As your PEO will handle taxes under its employer identification number (EIN) instead of
yours, tax preparation is a particularly important PEO job. If your PEO’s state unemployment
tax rate is lower than yours, you will pay fewer taxes.
Your International PEO services agreement is more of a formality than anything more,
given that you won’t notice any variations in how you manage your personnel daily. If you
are still worried, you may choose a PEO certified by the IRS or the Employer Services
Assurance Corporation. These PEOs adhere to stringent criteria that almost guarantee no
substantial changes to your operations.
What is a global PEO exactly?
International PEO refers to a PEO that concentrates on delivering HR services to domestic
clients that are expanding internationally. International PEOs may assist with payroll as well
as the legal obligations for insurance, taxes, and risk management that accompany entry
into a foreign market. As a result, negotiating the challenges of international expansion will
save you time and money.
How can PEOs contribute to your worldwide expansion?
As your business expands worldwide and enters new regions where you may be unfamiliar
with local laws and regulations, foreign PEOs may be able to help you in mitigating
compliance concerns. Similarly, your global PEO providers may inform you of any
legal changes resulting from expansion into new regions. With the help of your international
PEO, you may register your firm in each of its new abroad sites.
As previously stated, PEOs will engage in a co-employer agreement with your company in
order to offer these services. You may indicate in this contract which overseas recruiting
tasks you delegate to the PEO and which you wish to handle yourself. No matter what
functions you contractually transfer to your PEO, you will continue to be responsible for daily
staff management and salary negotiations.
What is an employer of record?
As stated earlier, International PEO services are not international employment
organisations. This is because GEOs are the official employer, while PEOs are co-
Employer of record (EOR) is a third-party firm that performs all of your employment-related
administrative responsibilities. Thus, your GEO, instead of you, executes employment
contracts on behalf of your foreign employees. Your GEO is identified as the employee’s
employer, although you run daily operations and have the right to set their schedules and
Due to the EOR structure of GEOs, you will not need to register your firm in every new
location as it expands, which is not the case with global PEOs. Your GEO will also handle
abroad payroll for your team, give guidance on international labour standards, safeguard
your organisation with international business insurance, and get work permits for your team.