What is a Global PEO?

A Global professional employer organisation (PEO) is a company that forms a partnership with another business by leasing its employees and taking on some of the latter’s legal obligations and duties in regards to those employees.

What does a Global PEO do?

The administration of employee benefits, compensation and payroll, and employment taxes are just a few of the human resource tasks that companies can outsource to a PEO.

PEOs usually act as a professional employer for the employees of their clients.

When venturing into uncharted territory, using a PEO can be a prudent choice. The PEO will be legally obliged to handle your payroll, taxes, and visa requirements in the foreign country. A company that acts as PEO can aid salary benchmarking, benefits management, and the hiring of international workers.

Benefits of a PEO

There can be significant advantages of a PEO, especially for a small or medium sized employers, including:

    • Companies can expand operations more quickly than by forming a foreign entity in the country and avoid the dangers associated with doing so
    • The use of a Global PEO  is especially attractive to smaller businesses, or those without the necessary corporate infrastructure to handle local payroll, tax, and visa issues.
    • Companies can save valuable time by outsourcing this task to an employer of record as there will be savings associated with not having to handle payroll and HR issue.
    • There will be savings associated with not having to handle payroll and HR issue.
    • Payment for the PEO service is a simple monthly management fee.

When dealing with payroll processing and employment legal issues for employees across the world, having an employer of record service handle such details on your behalf can be extremely helpful. Without the PEO, you would have to keep up with the ever-changing legislative requirements to ensure your compliance. 

What a Global PEO doesn’t do

1. PEOs do not have control over your company.

Only for the purposes specified by your agreement with the PEO will it be considered a co-employer. These responsibilities are typically limited to the payroll and HR services required to compliantly employ your employee.

With a PEO, you have access to a team of HR experts who you can consult for help whenever you need it.  You retain complete authority over the company and all operational decisions, while the PEO will handle the administrative burdens and hazards associated with employing in that particular territory.

2. A PEO won't replace your company's own internal HR employees.

PEOs work in conjunction with your company’s current HR department to offer HR and payroll support in countries where the company doesn’t have the knowledge or infrastructure to directly employ their employees.

A reputable PEO such as Agility EOR has seasoned human resources experts with broad industry knowledge. This allows you as the  PEO client, to take advantage of the PEO’s knowledge and expertise.

This can be especially helpful when dealing with tricky HR issues such as termination of employees.

3. Trustworthy PEOs won't cause disruption to your business

Employees will take note of the PEO’s name appearing on their paychecks, but that is generally the extent of the PEO’s dealing with the employee. As the employee’s day-to-day duties and line management responsibilities lie with the your company, the employee will identify as being an employee of your company rather than the PEO.

Scott Winter

Scott Winter

HR Director

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