Today, managing distributed teams across borders is essential for an organization’s growth. This necessitates a deep understanding of the differences between Professional Employer Organizations (PEOs) and Employer of Record (EOR) partners.
Understanding it helps to make informed decisions tailored to your company’s unique needs.A PEO serves as a co-employer, providing outsourced HR services to small and medium-sized businesses.
These comprehensive services encompass payroll processing, benefits administration, regulatory compliance, and tax filings. By partnering with a PEO, companies can offload HR tasks, allowing internal teams to focus on core responsibilities.It’s crucial to note that while a PEO acts as an outsourced HR department, it is not the legal employer of your workforce.
Therefore, your company retains accountability for both legal obligations and day-to-day operations. It includes business registrations in locations where talent is hired.Rivermate simplifies the global hiring process for companies by providing comprehensive Employer of Record (EOR) solutions.