Finding the best candidates, wherever they may be, is an important part of building the right team for your business. Justworks can help support your company as it expands worldwide through our International Employer of Record (EOR).
Justworks’ EOR services are open to anyone who wants to streamline hiring full-time employees internationally!
Learn more about how our EOR services can help you manage your global team here.
Below are some key things to consider when deciding if an Employer of Record is the right choice for you and your business.
What is the difference between PEO and EOR?
The biggest difference between a PEO and an EOR is who has the local entity. With a PEO, you are required to own the local entity and enter into a co-employment arrangement, when permitted by law. An EOR, on the other hand, allows you to hire in other countries without a local entity and when co-employment is not possible by law. Justworks International acts as the local entity and directly employs the individual.
Are EOR and International Contractors the Same?
Employing an individual through an EOR is not the same as engaging with an individual on a contract-only basis.
Hiring employees through an EOR requires the employer to collect and remit local taxes for both the employee and employer side. Additionally, employees have access to the same employee protections and benefits as other employees in their country of residence.
With International Contractors, the individual isn’t formally employed. They are commercially engaged by our customers and, as any other external contractor, receive the gross amount directly and are responsible for properly filing and remitting their own taxes (often with the help of a local accountant).
Find out more about how Justworks can support customers with their International Contractor Payments.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.