- By asdasdasd
- 11-Aug-2023
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This is accomplished by the global PEO company hiring the client company employees and becoming the employer of record for compliance and tax purposes. Whilst a Global PEO manages and maintains a global payroll service and record keeping for the client employees, the client is able to direct the daily tasks of the employees, focusing on the key priorities that impact the business.
Four Benefits of Using a Global PEO:-
1) Flexibility
A global PEO provider enables its clients to hire full-time employees (not contractors) risk free without having to set up a legal entity in the country they are looking to expand to. Instead of trying to manage the complexities of each country’s limitations on contractors, global PEOs allow firms to recruit and hire foreign workers that can get the job done, creating a stronger employment relationship and more stability than a flood of temporary workers could provide.
2) Local Compliance
One of the biggest challenges for employers is understanding local payroll regulations, mandatory and non-mandatory employee benefits and local labor laws. That is, all the things you need to know and process in your local payroll to be in local compliance. Using an international PEO allows employers to sidestep these complex issues, placing the compliance requirements and international payroll in the hands of local experts. See this for the advantages of using an in-country EOR partner versus wholly owned infrastructure.
3) Cost
Setting up a local entity i.e. a registered company in a foreign country is a time consuming and expensive process. With global employee leasing, international PEOs allow employers to hire local workers without going through the expense and hassle of setting up a local, permanent establishment. For companies, and especially growth start-ups set on quick global expansion there’s no better way to hire quickly and compliantly.
4)Time
The preliminary findings from Papaya Global’ s 2017 Global HR Practices Survey point to one clear fact: the number one reason employers hire global talent is to create a global footprint close to their target market. And in instances where firms are seeking, time is of the essence. An international PEO gives employers an opportunity to leapfrog the competition, putting workers in place in a fraction of the time it takes to hire through more traditional means.
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