What should you choose for your business, PEO Germany of Employer of Records?

A PEO or Professional Employment Organization is a service or company that partners with small to medium sized organizations to give them HR services such computing payroll, compliance with regulations, filing of taxes, recruitment, training and other such services. When you avail the services of a PEO, your company will be continuing your normal daily operation such as employee functions for example whereas the PEO will deal with HR related matters. The employees will receive cheques and other documents regarding HR communication in the name of the PEO company. The services offered by different PEO’s vary. International Payroll Services provide a set of customized services such as:

 Employee benefits such as medical aid, educational assistance, etc.

·         Payroll regulations compliance and maintaining records.

·         Administration of compensation.

·         Complying with labor law and other employee requirements.

·         In house HR Administration.

·         Development and training of employees.

·         Recruitment and hiring.

Thus, our PEO Germany offers a wide variety of services.

However, if your company does not want to outside the whole of your HR functions or does not want a co-employment arrangement, EOR or Employer of Record Germany might be the option for you.

Our global Employer of Record services Germany are similar to PEO Germany. However, the difference is that we become the legal employer as opposed to the co-employment situation in a PEO. Our services include but are not limited to:

·         Payroll taxes management

·         Compliance of payroll rules and laws

·         Administering benefits

·         Reporting if claims for unemployment

·         HR related work

When your business expands into different places, the employment laws and other regulations that you have to comply with changes and complex. It will not be the same in all of your offices, with one office having a different set of rules from the others in other geographical areas.

If you are going for a PEO then a legal presence has to be established across every place where you have employees. But if the EOR is already established across different areas then the company can legally recruit employees through the EOR.

A PEO basically serves as the co employer of your organization is mainly used for the entire workforce of your company. It will share your HR responsibilities and can even control the whole of your HR duties. It can provide services to minimum 5 to 10 employees. It can collaborate with companies that have registered in every company or state where the company has employees.

On the other hand, the EOR serves as the legal employer of your company and takes up responsibilities associated with that. They take up a portion of HR function and can be used by partially by the workforce. But with EOR companies have the freedom to expand to a different country without having to set up a legal entity. 

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