Service model comparison
PEO vs. employer of record
A PEO consolidates US HR administration through co-employment; an employer of record employs your staff legally in a country where you have no entity. They solve different geographic problems and are often used together.
PEO
- Domestic: co-employment covering payroll, benefits administration, and risk services
- Access to a larger sponsored benefits group than you could buy alone
- Administrative fee is per-employee or percentage of payroll, on top of premiums and taxes
- National US coverage — it does not make you compliant in another country
Employer of record
- Employs your staff legally in their country and handles local payroll, tax, benefits, and compliance
- You direct the work; the EOR is the legal employer
- Cost is per-employee monthly and varies by country — get it quoted in writing per country
- One published example: Justworks lists global EOR at $599/employee/month
How should you make the decision?
Start with the work your company needs performed, the decisions that require internal ownership, the amount of day-to-day capacity required, and the risks of changing models. Then ask providers to map their scope against that operating picture.
A model is not a quality guarantee. Service teams, implementation, systems, pricing, and contract terms differ materially within every category.