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  • Writer's pictureAmalga Group

PEO vs. EOR: Which Is Right For Your Organization?

Are you wondering whether a PEO or an EOR is the best fit for your organization? Let's break it down in simple terms!

What Is a PEO? PEO, or Professional Employer Organization, acts as a co-employer, meaning they share employer responsibilities. They provide comprehensive HR services like payroll, benefits administration, regulatory compliance, and tax filings. However, keep in mind that your organization is still accountable for legal and day-to-day operations.

What Is an EOR? EOR or Employer of Record, is the legal employer of your distributed workforce. They handle all employer-related tasks, including onboarding, payroll, taxes, compliance, benefits administration, and unemployment claims. They are a great option if your business operates in locations where you don't own a separate entity.

PEO vs. EOR: 3 Key Differences Every Organization Should Know

  1. PEOs are co-employers, while EORs are the actual employer of your workforce.

  2. PEO can be more beneficial for companies full-time, while EORs offer flexibility for those relying on temporary employees or accessing talent in multiple locations.

  3. PEOs provide HR services in locations where your company already owns an entity, while EORs have in-depth knowledge of local hiring practices and laws for easy expansion.

PEO Partner or EOR Partner: How to decide if your business plans to open a new entity in a different state or country, a PEO may be your best bet. However, if you're looking to hire in a new locale or multiple countries simultaneously, choosing an EOR is a smart move. They can act as an entity on your behalf and ensure compliance for smooth employment.

So, analyze your organization's needs and make the right choice between a PEO and an EOR! Remember, the right partner will support your HR functions and help you navigate the complexities of employment. Good luck!

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