What is the role of a PEO-focused company?
A company specializing in Professional Employer Organization (PEO) services serves as a legal and administrative employer for your workforce, taking on all the legal and regulatory responsibilities tied to immigration, employment, and payroll. While this company technically employs your personnel on record, it doesn’t exercise any supervisory or managerial control over your employees. All decisions regarding compensation, roles, projects, and termination remain with the original employer. The PEO company’s responsibilities include managing visa and work permit applications, registering employment contracts with local authorities, paying income tax and social security contributions, and ensuring compliance with local labor laws.

What does a PEO solution comprise?
A PEO solution primarily offers two services: The “Employer of Record” (EoR) service oversees the management of employment contracts and all related formalities. The “Professional Immigration Service” (PIS) provides a comprehensive suite of services for professionals and employees intending to work overseas, including applications for visas, family visas, work permits, and residences.

Who stands to gain from a PEO solution?
A PEO solution proves effective for both residents and expatriates, as it aligns fully with the host country’s laws. It eliminates the risk of infringing upon labor, tax, and employment regulations, offering a reliable solution in nearly every country.

When is a PEO solution most advantageous?
A PEO solution can prove beneficial in situations such as hiring a person in a country where you lack a legal entity, or in regions where hiring costs are exorbitant. It’s also useful when hiring in a country where remote payroll is seldom permitted, especially for extended assignments. If you’re planning to develop a new market or assign employees to a country where you lack a legal entity, a PEO solution can navigate the regulatory and financial hurdles encountered when employing staff overseas, ensuring legal compliance for both local and foreign employees.

Should PEO be regarded as a pivotal solution in the context of an international expansion strategy?
Increasingly, PEOs are becoming an integral component of international expansion plans, as companies adjust to new work cultures like international outsourcing and remote working. With countries revising immigration and employment laws to avoid exploitation and loss of tax revenue, companies must adopt new strategies to counter the challenges of international expansion. Hence, PEO is emerging as a crucial strategy in managing contracts for expatriate and local workers.

Is there a stipulated duration for using a PEO solution?
At Mobility HR, the minimum commitment for using a PEO solution is 3 months, with no upper limit.

What’s the minimum staff size needed to leverage the PEO service?
At Mobility HR, the PEO service can be employed even for a single employee, as there’s no minimum staff size requirement.