PEO Models and Payroll Key Differences
Domestic PEO solutions initially appeared in the US, facilitating business expansion within a single country. A global PEO enables businesses to hire and manage employees internationally, without having to set up an international entity, to quickly get up and running overseas.
There are also companies that provide international payroll, but they do not provide employment services like those provided by a PEO. When choosing the best model for your company, it is important to understand who will be responsible for employee onboarding and employment risks.
| Co-Employment | Client | |
|---|---|---|
| Employment risks mitigation | 50% | 50% |
| Tax compliance & payroll processing |  |  |
| Involvement | 35% | 65% |
| Incorporation costs | | |
| Coverage | client’s home country only | client’s home country only |
| International Payroll | Client | |
|---|---|---|
| Employment risks mitigation | | |
| Tax compliance & payroll processing | | |
| Incorporation costs | | own foreign entity required |
| Effort | 20% | 80% |
| Coverage | multionational | multionational |
| Our Global PEO&Payroll | Client | |
|---|---|---|
| Employment risks mitigation | | |
| Tax compliance & payroll processing | | |
| Incorporation costs | | no need for own entities |
| Effort | 90% | 10% |
| Coverage | 190 countries | 190 countries |
