There are many benefits to expanding your workforce globally. However, this journey can be complicated and comes at a price. For one, setting up legal entities in foreign countries is costly, time-consuming, and can be risky. Companies choose to work with a GEO (Global Employment Outsourcing) or International PEO for these reasons. GEOs deliver EOR (Employer of Record) services in multiple countries allowing organizations to hire remote workers in any global market without the cost and risk of setting up a new entity. International PEOs offer a similar service but limited to one or a few markets that they develop deep expertise in.
In this blog we will dive into what GEOs offer and how an international PEO compares.
What is a GEO?
The complications of hiring abroad lead many organizations to working with a GEO or international PEO, instead of opening a local subsidiary. Setting up compliant international payroll takes a lot of legwork and ongoing attention to changes in employment and tax law. An international PEO company has the infrastructure to legally hire employees in various markets through compliant, local employment contracts. The international PEO acts as your remote employees’ legal employer in their country of residence. Working with an international PEO enables you to mobilize a foreign workforce without the hassle of setting up a foreign legal entity, giving your organization more time and energy to focus on day-to-day employee activities.
GEOs offer similar services, but in many different, or even all countries. The GEO takes care of all risks associated with hiring remote employees while assuming all essential human resources responsibilities and administration of your workers. The many functions of a GEO include:
- Administering employee contracts
- Issuing work permits and visas
- Payroll processing and in-country taxes,
- Employee compensation packages, health benefits and insurance
GEOs provide additional services that may include administering family or medical leave, short and long-term disability, staff performance evaluations and management, and even termination negotiations. The key feature of GEO is global payroll; this enables centralizing a company’s payroll worldwide through one provider. GEOs offer global payroll solutions by managing your organization’s entire payroll function for all locations via one system.
GEO vs. PEO
Without delving in-depth into the topic of GEO vs. PEO, as we provide an in-depth comparison between the two in this blog, we will discuss some of the primary features of both.
Before choosing a GEO or PEO for your company, it is essential to consider the differences and similarities between these two types of organizations. Both are legal entities that enable companies to hire employees abroad without creating a branch outside their home country. GEOs and international PEO companies provide EOR services globally to organizations looking to hire remotely from anywhere worldwide.
GEOs offer similar services to PEOs but with an international and global expansion focus. They provide global payroll services to streamline your payroll for all your locations under one centralized system. If you are a US company with an already specialized payroll system, a global payroll system may not serve to your advantage. You may require more local expertise, which a global payroll might not offer, but a PEO can.
PEOs offer employee leasing or employer of record services that allow you to hire internationally without opening a subsidiary. PEOs have local expertise in employment contracts, in-country labor laws, and payroll taxes to help you avoid making errors, which can result in hefty government fines. Being local experts, PEOs may offer better service than GEOs as having a global focus can lead to a lack of specialized, local knowledge.
Work with Canadian Payroll Services Today
Canadian Payroll Services is an international PEO specializing in remote hiring Canadian workers. Because we operate in only one country, we have unmatched local expertise delivered by a local team with decades of experience.
Payroll and employment laws in Canada are complex and differ from province to province. Understanding the nature of taxes in Canada requires in-depth knowledge, which Canadian Payroll can provide. We assign dedicated HR-certified account managers to each of our clients and employ CPA-certified payroll practitioners to ensure that our payroll is accurate and compliant. We stay on top of the changing nature of in-country labour laws and compliance, so you don’t have to.
If you are looking to hire a Canadian remote worker, contact Canadian Payroll Services today!