Does an employer of record or PEO manage payroll?

Yes, an employer of record or PEO manages payroll for your international employees. Your EOR/PEO handles everything related to payroll for your employees, including deducting taxes and mandatory social contributions, as well as contributions for benefits like private health insurance. In addition to payroll, they also manage benefits, local tax filing, and compliance.

Will an International PEO provider hire candidates for me?

Yes, we use locally compliant employment contracts to hire new members of your global team and become their legal Employer of Record (EoR). PeakPEO will act as your EOR to deliver the right services in the countries you require services for.

How do I set up global payroll?

Global payroll is a complex process that varies from country to country. If you are looking to pay workers in other countries, follow these steps: Identify the person you wish to hire (or the existing employee who will be relocating). Determine whether your new worker will be a contractor or an employee. Select a global payroll provider, also known as a PEO or employer of record EOR. Confirm the worker’s salary and benefits package. Provide the worker’s information to your provider to set up payroll. Work with your global payroll provider to create an employment agreement. Sign the employment agreement with your employee.

How do you pay workers in other countries?

Unlike domestic employees, who can receive their paychecks with little difficulty, employees in other countries require more attention. To pay employees in other countries, you must account for things like contributions to social programs, like social security and pension funds; employer taxes; and payment for statutory benefits. Many businesses looking to hire foreign employees work with global payroll providers.

Which country's laws apply to foreign workers?

Are foreign workers governed by the laws of their country or the laws of yours? In most cases, the answer is both. However, your company should already be compliant with the laws of the country where your business is headquartered. To hire workers in other countries, you must also understand and account for other laws. Different countries have different degrees of worker protection, different requirements for employers, and different penalties for breaking the rules, so it’s important to take compliance seriously.

Can US companies pay foreign employees?

Companies in the US cannot make direct payments to foreign employees in most circumstances. Although US companies can make direct payments to global contractors, paying international employees is more complicated. Companies can either set up their own legal entities in the countries where employees work, or they can partner with a global employer of record that provides payroll services.

Will you pay/deduct taxes from the supported employee’s payroll?

Yes, we withhold individual taxes monthly and follow all local tax laws in their region.

International PEO - Go Global With PeakPEO

What is International PEO?

International PEO is a solution that helps companies expand their businesses into new markets by providing them with an employer of record (EOR) in the target country. This allows businesses to operate in foreign countries without having to set up their own legal entities or deal with the complexities of local employment laws.

To learn more, check what exactly is a PEO?

Paul Voakes from PeakPEO recently spoke on "Running a Global Payroll" webinar which was organized by Nathan Trust. Listen to what Paul has to say about PEO, global payroll, and hiring in remote places.

International PEO - A Solution To Your Global Needs

Global PEOs, or better yet EORs, establish local entities in countries worldwide and build systems for simple, compliant employment. The benefits of hiring an international PEO are many and diverse. The value of International PEO lies in its flexibility. This can be especially useful to companies with different needs and sectors, but it's beneficial across all sizes!

However, it is particularly valuable to companies that:

Are unsure if they will be in the market for five or more years
Don't have a successful setup or legal entity in the specific country
Have international headcounts between one and 20 supported employees
Cannot delay their hiring timelines and need to be operational in new markets quickly
Do not have the extensive financial and internal resources required for global expansion
Require a bridged solution between an acquisition close date and entity readiness

Let's take the example of David to understand this better.

David is the CEO of a financial services company based in Boston, United States. He's looking to hire new employees in India and Spain - but he doesn't have an entity set up in either of those countries yet. So he's looking for a cheaper option to enable global payroll and compliance for his new hires. He also wants someone to take care of the benefits packages locally for his 2 new future recruits.

Luckily, David has found an amazing solution that will help him keep costs down while still complying with all the necessary regulations - a global payroll provider or global PEO services. This provider can handle all the complex paperwork and compliance requirements for him, so he can focus on expanding his business into new markets, employee experience, performance, and retention.

With this PEO solution in place, David can rest assured that his new employees in India and Spain will be paid accurately and on time without much hassle. Similarly, if you have the same requirements as David you can take the help of PEO or an EOR for your business expansion needs.

Expanding your business overseas will draw a lot of challenges. So here we have 3 tips to successfully expand your business overseas.

What are the benefits of using our International PEO solution?

A PEO can be a cost-effective solution for businesses that want to tap into global talent pools. Rather than setting up your own international operations, you can partner with a PEO that already has a presence in your target markets. This can save you time and money while reducing your risks.

A PEO can help you navigate the complexities of international payroll and employee onboarding. They can also help you manage compliance with local employment laws. This can free up your time to focus on growing your business.

We can be the trusted partner for your distributed workforce anywhere. You name it!

International reach to avoid missing market with travel restrictions or VISA difficulty
Always remain compliant with payroll tax and employment law
Avoid the need to register a local legal entity and in many cases pay in Country corporation tax
Agile as projects move from one country to another, no need for the expense of closing or making dormant in-country entities to follow opportunity
Fast onboarding of new workers
Access to local support, HR advice and compliant employment contracts
Simple invoicing in any of 26 hard currencies with one invoice per country.

Learn more on how a PEO can help your business?

Does an employer of record or PEO manage payroll?: Yes, an employer of record or PEO manages payroll for your international employees. Your EOR/PEO handles everything related to payroll for your employees, including deducting taxes and mandatory social contributions, as well as contributions for benefits like private health insurance. In addition to payroll, they also manage benefits, local tax filing, and compliance.
Will an International PEO provider hire candidates for me?: Yes, we use locally compliant employment contracts to hire new members of your global team and become their legal Employer of Record (EoR). PeakPEO will act as your EOR to deliver the right services in the countries you require services for.
How do I set up global payroll?: Global payroll is a complex process that varies from country to country. If you are looking to pay workers in other countries, follow these steps:

Identify the person you wish to hire (or the existing employee who will be relocating).

Determine whether your new worker will be a contractor or an employee.

Select a global payroll provider, also known as a PEO or employer of record EOR.

Confirm the worker’s salary and benefits package.

Provide the worker’s information to your provider to set up payroll.

Work with your global payroll provider to create an employment agreement.

Sign the employment agreement with your employee.
How do you pay workers in other countries?: Unlike domestic employees, who can receive their paychecks with little difficulty, employees in other countries require more attention. To pay employees in other countries, you must account for things like contributions to social programs, like social security and pension funds; employer taxes; and payment for statutory benefits. Many businesses looking to hire foreign employees work with global payroll providers.
Which country's laws apply to foreign workers?: Are foreign workers governed by the laws of their country or the laws of yours? In most cases, the answer is both. However, your company should already be compliant with the laws of the country where your business is headquartered. To hire workers in other countries, you must also understand and account for other laws. Different countries have different degrees of worker protection, different requirements for employers, and different penalties for breaking the rules, so it’s important to take compliance seriously.
Can US companies pay foreign employees?: Companies in the US cannot make direct payments to foreign employees in most circumstances. Although US companies can make direct payments to global contractors, paying international employees is more complicated. Companies can either set up their own legal entities in the countries where employees work, or they can partner with a global employer of record that provides payroll services.
Will you pay/deduct taxes from the supported employee’s payroll?: Yes, we withhold individual taxes monthly and follow all local tax laws in their region.

How working with a PEO or EOR can help you avoid common pitfalls

Doing business internationally is no easy feat. An experienced EOR can help your company avoid some of the most common pitfalls that aspiring companies face when trying to expand into different markets around the world while achieving global expansion goals. PeakPEO can be the global EOR partner that can help companies manage:

Employee Onboarding: Whether you’re hiring remote employees to fill global positions or need help securing the top talent in a foreign country's diverse labour force, an EOR lets you do so without establishing a legal entity first. Onboarding your new employees don’t have to be a hassle. PeakPEO will create a customised onboarding plan for your new employee, ensuring a smooth transition into their new role. PeakPEO's employee onboarding services provide competitive compensation and benefits packages based on local standards and expectations for all your new hires. We take care of all the paperwork so you can focus on running your business efficiently.

Legal compliance: When onboarding new employees, you must ensure that you are aware of the company's compliance with labour laws. This includes things like employee rights, hours worked, and compensation. Failing to comply with these laws can result in legal action or costly fines. As your global EOR, we will take care of all the legal aspects and compliance with labour laws in any specific country.

IP security and data protection: With our encrypted systems for transmission and storage, you can rest assured that your data is safe. Our team will work with you on legal monitoring, and data protection platform-wide.

Tax compliance and payroll: We have 35 years of expertise in managing global payroll and providing local tax expertise through our localized tax experts. Your company does not have to worry about complex tax systems and enabling taxable income for your employees.

International PEO - Go Global With PeakPEO

How can Peak PEO help you go global?

What is International PEO?

International PEO - A Solution To Your Global Needs

Presence in 180+ countries

What does our International PEO solution include?

Paying your employees in their local currency

Administering your employee benefits packages

Withholding taxes required in that country

Onboarding employees globally and filing tax forms

Making contributions social security and pensions

Maintaining compliance with evolving local labour laws

What are the benefits of using our International PEO solution?

BENEFITS

PAYROLL

HR

Why our PEO solution is a great fit for your needs?

Unmatched experience

Global presence in 180+ countries

Comprehensive benefits, HR and payroll packages

100% local compliance in 180+ countries assured

FAQs - Frequently Asked Questions

How working with a PEO or EOR can help you avoid common pitfalls

Expand Your Team Anywhere In The World With PeakPEO