EOR vs PEO

EOR Vs PEO

They may seem similar, but Employee of Records (EOR) and Professional Employer Organizations (PEO) offer different services. It’s important to understand the differences so you can pick the one that will best suit your company’s needs. You may be thinking that all you want are simple EOR services when in reality, you actually need more specialized solutions that a PEO may be able to supply.  

Canadian Payroll Services is a PEO that offers EOR services, therefore, we understand the distinctions between the two. Continue reading through our guide which will help you determine which service best fits your needs. 

Employer of Record Services 

An Employee of Record (EOR) is a third-party organization that typically manages the legal responsibilities of hiring new employees and handling payroll for a company interested in global employment.  

EORs can be used for many reasons, which include:  

  • Visas and work permits 
  • Employment contracts 
  • Payroll 
  • Maintaining compliance with local laws 
  • Termination 
  • HR services 

With EOR services, organizations can easily contract workers across borders without creating legal entities wherever their people are. Engaging a PEO that provides EOR services allows organizations to test new markets without committing to a new office, or to employ small teams all over the world. 

PEO Vs EOR  

While EORs and PEOs do have many differences, they are also very interconnected. EOR is often a basic service that offers only the benefits and features above, but if you are looking for a more comprehensive solution, working with a PEO may be a better choice for your company.  

PEOs act as a bridge between employer and employee, handling outsourced payroll, taxes, benefits, and compliance issues. Some PEO services specialize in staffing, recruiting large teams, and contracting them out to clients. Others specialize in long-term employment arrangements, focusing on HR outsourcing, including onboarding, training, and coaching. PEOs may provide a handful of services or a more comprehensive solution, depending on their specialization.  

Domestic vs International PEOs 

Domestic PEOs are primarily outsourcing providers. They serve organizations in the same country or state in which they are incorporated, offering cost savings and expertise in payroll and HR outsourcing. 

International PEOs serve an additional important function: they provide local expertise that isn’t as easy for companies of any size to come by. While there are broad principles that govern good payroll and HR, they are highly localized compliance functions. Keeping abreast of local changes in employment laws and standards can be difficult for any small business – international compliance is often beyond them. 

Some international PEOs, such as Canadian Payroll Services, also provide Employer of Record (EOR) services, hiring workers full or part-time and contracting them out to their clients. Deciding which service to acquire comes down to whether you are looking for simple outsourced payroll resources or a more comprehensive and specialized solution. 

Get Started With a PEO Today 

Now that you know more about the differences between a PEO and EOR, you will be better prepared when making the decision of which one best fits your business’s needs. Working with a PEO could provide you with EOR solutions along with other services you may also need. 

As a PEO that offers EOR, Canadian Payroll Services has numerous benefits beyond basic EOR and employee leasing services. We offer a broad range of services that can help any international company looking to expand, regardless of whether you are looking for simple services or more specialized back-end responsibilities.  

Contact us to learn more about how working with a PEO that offers EOR can help your business.

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