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Global PEO Services

By – Divya Jiwtani

Global Professional Employer Organizations, or Global PEOs, are the organizations that enable other companies to hire supported employees anywhere around the globe quickly, compliantly, and without the burden of establishing a foreign legal entity.


What is a PEO?

professional employer organization (PEO) is a third party outsourcing firm or agency that provides services to small and medium-sized businesses. PEOs generally manage payroll, benefits, and other HR responsibilities for the employees of a client company. PEO is additionally called the Co-employer.

PEO is a HR outsourcing service provider, which can assist a corporate or firm with the management of employment related tasks, including employee benefits, compliance with state and federal regulations, servicing payroll and risk management.  It’s essentially a ‘co-employment’ relationship between the PEO and the client-company, where the employees or staffs are employed by both, so that the PEO can assume some of the employer responsibilities for the client.

To have a free discussion on these matters and what will suit you better, you can write to us here

What is an International or Global PEO?

global PEO on the other hand manages all the functions of a PEO—payroll, benefits, legal compliance—but for workers situated outside of a company’s home country. A global PEO is a vital partner for businesses expanding overseas, especially those looking to recruit employees in a variety of different countries. A global PEO can assist firms to navigate legal and cultural differences and successfully expand into new markets.

A global PEO typically manages the following functions for any given company:

  • Payroll Services – Almost like regular PEOs, global PEOs are liable for making timely payments to international employees, taking under consideration geographical zone differences, currency exchanges, and international banking practices. Global PEOs interpret and suits local tax laws, making the mandatory tax withholdings.
  • Benefits – Countries round the globe have contrasting approaches to employment benefits. An international or global PEO helps firms understand cultural expectations for employment in their target market and provide a benefits package that meets local legal requirements.
  • HR/Legal Services – Full compliance with local employment and payroll regulations could be achallenging, yet essential, a part of a company’s process of international expansion. Global PEOs help companies operate efficiently and fully legal compliance as they operate in foreign countries.
  • Additional Benefits – Companies having international employees are cognizant that there are many unexpected challenges with international expansion. A world PEO could be a partner who already includes a presence round the globe and might help in identifying and resolving the challenges that arise from legal and cultural differences.

Why use a Global or Worldwide PEO?

The primary reason to use a global PEO is that the PEO has a built in HR support structure that includes:

  • Risk Management and Worksite Safety
  • Payroll Servicing
  • Insurance and Workers Compensation Coverage
  • Regulatory Compliance
  • Withholding and Taxation


How Does a Global PEO Arrangement Work?

The international or global PEO contracts in a very business-to-business (b2b) arrangement with the client company to handle defined aspects of the duties to the staff.  This may be a comprehensive service, or in some cases is also scaled all the way down to suit the client’s specific needs.

The client-company still has the employment contract with the employee or the worker, and can both negotiate compensation and manage the work activity.  The employee will probably not even notice the PEOs role, except if they have concerns about any administrative issues that come up.

To have a free discussion on these matters and what will suit you better, you can write to us here

8 Key Benefits of a Global PEO

The 8 Benefits of Global Professional Employer Organizations or Global PEOs are listed below:

1. Flexibility – PEOs allow clients to hire full-time employees (instead of contractors) risk free without having to line up a legal entity within the country they’re trying to expand to. PEOs allow firms and corporations to recruit employees which will get the work done, creating a stronger employment relationship and more stability than a flood of temporary workers could provide.

2. Local Compliance – One of the biggest difficulties for employers is to grasp the local payroll regulations, mandatory and non-mandatory benefits and native labor laws. Using an international or global PEO allows employers to sidestep these tricky issues, placing the compliance requirements and international payroll solutions within the capable hands of the third party local partner.

3. Cost Efficient – A Global PEO Service provides a value efficient and non-cumbersome way of setting up a local entity i.e. a registered company or firm in a foreign country. International PEOs allow employers to recruit local workers or employees without going through the expense and hassle of setting up a local, permanent establishment. This method is extremely beneficial for small startup companies which are aiming to expand their businesses in other nations.

4. Accurate Financial Forecasting – Due to various factors financial forecasting becomes a fancy process, especially when international business is involved. A global PEO has extensive experience with the above factors, allowing it to assist its partner companies and firms develop accurate projected budgets.

5. Data Security – A global PEO with a GDPR-compliant platform has navigated the complexities and requirements of the regulations passed by the countries. Global PEOs ensure to provide its partners with the security of knowing that its employee data is held to the very best standard of information security.

6. Streamlined Expansion to New Markets – New markets abroad present various new opportunities for growth. If a global PEO is managing and administering payroll and benefits of your company, it can make sure that it’s compensating its international employees in accordance with local law. Which means the workers of your company are satisfied and productive, and you’ll have the muse for a decent reputation with the local government of the country and within the community.

7. Time – The number one reason employers hire or recruit international talent is to form a global footprint near their target market. And in instances where companies are seeking, time is of the essence.

An international or global PEO gives employers an opportunity to skip the competition and saving a lot of their time by putting them in a place where it requires only a fraction of the time to hire employees through more traditional means.

8. Expanded Benefits Offerings – A global PEO can certainly help small businesses as it offer the benefits that potential employees expect, improving recruitment and employee retention. This could be crucial for a business expanding overseas, as workers in an exceedingly new market may expect a baseline benefit that the corporate or firm doesn’t provide in its home market. A global PEO can help provide that benefits expected by the employees in a cost-effective manner.

Hey, would you like to get your company’s analysis done for an HRO need? Or need free best-written policies by an HRO team. If yes, do write to us here


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