The Definitive Guide to International PEO

The Definitive Guide to International PEO

The Definitive Guide to International PEO International PEO (Professional Employer Organization) to helps companies with the hiring and management processes in the global market. This helps in mitigating all the risks that come with traditional expansion methods. Before, companies would have to establish foreign legal entities to hire employees within compliance, which becomes expensive and burdensome. Companies try to reduce this cost by hiring independent contractors, which may seem like a quick and easy way to enter a new market, but it can also turn into a very risky situation with lots of fines and penalties in tow.

Understanding International PEO

To make entering global markets easier for companies, International PEO was established. It is an international employment solution which helps in streamlining global expansion for companies. This is done by creating a scenario where companies can hire anywhere in the world and the process is quick, compliant and they do not have to set up a foreign legal entity. International PEO removes all the hassle that come with complicated global expansion processes along with adding significant benefits for the companies expanding, no matter the size, to achieve their international goals.

How International PEO Works

Your new employees are hired by your International PEO provider directly on your behalf. The PEO becomes the legal Employer of Record. The PEO provider is in charge of the following:
  • Onboarding
  • Payroll
  • Tax withholdings
  • Remittances to the local authorities
  • All benefits
  • Health and social security-related programs
  • Pension
  • Terminations
The hired employees are your employees and they work full-time for your company. Your company has complete control of the employee's responsibilities and employee liabilities. Using a PEO provider enables companies to legally operate in a foreign country alongside a team of employees without establishing a foreign entity.

Benefits of International PEO

  • Quick Market Entry
  • Cost Savings
  • Time Savings
  • Risk Mitigation
  • Increased Flexibility
  • Streamlined Process
  • Employee Benefits and Satisfaction
  • In-Country Expertise
  • Premium Service and Support
  • Limitless Global Reach

Key Takeaways:

  • International PEO makes entering a global market a lot simpler for companies
  • The process does not require companies to set up as a legal entity in foreign countries
  • The employees still work for the company full-time

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