Professional Employer Organizations (PEO) are a popular solution for American companies seeking to outsource the employment of staff, especially out of state. Internationally the term PEO is not very well known, even though there are still many companies providing a similar service. We call it Global Employment Solutions and the companies who provide it, Global Employer Organizations (GEO).
In principle it is very similar to the PEO service - except provided overseas. It allows companies to outsource the employment and payroll administration of their international workers. The international PEO assumes responsibility for compliance with tax, employment and immigration law.
However unlike a traditional co-employment relationship where two companies share the employment responsibility (and liability) of the workers, in an international PEO setup the staff will almost always have to become employees of the local provider. This is because in order to ensure compliance with local employment and immigration regulations, an appropriately registered local company must be the "employer of record".
The client still manages the staff and directs their day to day activities.
When should you consider an International PEO Solution?
- If you don't have an appropriately registered local company
- If you are under pressure to get the staff working quickly and compliantly
- If you want to avoid the upfront cost and commitment of incorporating locally
What are the benefits of using an International PEO Solution?
- Deployment times reduce from months to weeks
- A fixed monthly management fee instead of variable upfront costs
- Easy adminstration
- Clear timelines, outcomes and budgets