EOR VS. PEO: What's the difference? | How to Hire in Latin America
Автор: Mexico Recruitment Agency
Загружено: 2023-03-16
Просмотров: 149
Ever heard the terms PEO or EOR and really didn't understand the difference?
Many use these terms interchangeably and they don't know what the fundamental difference is.
Josh Garcia talks about what that difference is so you can determine what's best for your organization.
An EOR is an employer of record now what an employer record allows you to do is if you're looking to hire a foreign employee or if you're looking to hire remote staff in a foreign country and you don't already have a legal entity set up and EOR is going to allow you to use their legal entity and then it allows you to make payroll handle compliance sign contracts do onboarding all the things that you would do in your home country you can do in a foreign country by using an EOR
now, on the other hand, a PEO is a professional employer organization. A PEO allows you to do is it allows you to do all the same HR functions you can make payroll you can handle compliance sign contracts do onboarding but they're going to require you to set up your own legal entity in that respective country So In Sum, if you're looking to hire a foreign employee remote staff in a foreign country you're going to want to use an EOR unless you want to go through the process of actually creating your own legal entity and then you can use a PEO those are the fundamental differences
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