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PEO and EOR: Find Out Your Right HR Solution

You can grow your team while keeping control over your workers’ daily activities with the aid of PEO and EOR services. Around 45% different organizations are using these services to maintain their reputation.

However, there is a question, “Which is your right HR solution between PEO and EOR service?”

PEO offers other companies HR services like payroll, benefits management, and help with regulations. On the other hand, EOR is a service that manages the legal and administrative burdens of being an employer, including payroll, taxes, and other benefits.

So, without delay let’s discuss it below!

PEO vs EOR: Which Is Your Best HR Solution?

Employer of record (EOR) and professional employer organization (PEO) allies assist businesses in managing teams globally. Though there are differences between both of the services.

(PEO) Professional employer organization collaborates with small and medium-sized companies to offer complete HR services like; payroll processing, benefits administration, regulatory compliance, tax filings etc.

While working with a global PEO frees you from HR-related duties, your business is still in charge of legal compliance and day-to-day operations, including licensing where you recruit employees.

In locations where they do not own an entity, EOR assumes all employer-related obligations for small to big enterprise-sized businesses.

Processing payroll, withholding taxes, filing tax returns, and adhering to employment laws and regulations are a few examples of duties that may fall under this category.

According to a study, the global Employer of Record market was worth $1.44 billion in 2019 and is projected to expand at a CAGR of 12.4% from 2020 to 2027.

Differences Between PEO and EOR Service

CategoryPEO ServiceEOR Service
1. ServicesOffers benefits administration, HR consulting, and risk management.Pay more attention to duties relating to payroll and compliance.
2. CostCharging a portion of your overall salary.Charge a set fee or a portion of the employee’s wages.
3. ControlMaintains authority over the day-to-day administration of its employees.More in charge of some employer-related duties.
4. EmploymentCo-employment.Does not.

Is PEO Service Time Effective for A Business?

PEOs provide a variety of services, including regulatory compliance, payroll handling, benefits administration, and HR administration.

Moreover, businesses can save a substantial amount of time that would otherwise be spent on administrative tasks by outsourcing these tasks to a PEO. Business owners and managers may be able to concentrate on more strategic duties like expanding their company as a result.

Additionally, PEOs typically have expertise and experience in these areas, which can result in faster and more efficient completion of tasks. 

For instance, a PEO might have access to technology that streamlines payroll handling or might have a group of HR experts who can respond to employee issues or concerns right away.

In general, businesses can save time, lower the risk of compliance mistakes, and gain access to expertise that can result in more effective and efficient operations by outsourcing administrative duties to a professional employer organization.


PEO services may be advantageous for businesses seeking to outsource a variety of HR duties while also establishing a more personal connection with the service provider.

 A PEO can help reduce the client’s administrative load and give access to a wider range of benefits and HR services because the client business and the PEO share employer responsibilities.

So, without delay contact us!


1. Are PEOs and EORs the same thing?

Worldwide team management for businesses is made possible with the assistance of employer of record (EoR) and professional employer organization (PEO) allies. 

The primary distinction between PEO and EoR is that the former serves as a co-employer while the latter is the official employer of a company’s distributed personnel.

2. What advantages do PEO and EOR offer?

PEO and EOR services help businesses expand worldwide and eliminate the need to form legal corporations. It deals with issues like hiring personnel, human resources, benefits, payroll, taxes, and compliance. 

Additionally, hire individuals quickly to test out new markets and act quickly in response to shifting business demands.

3. Is PEO service costly?

The average cost of a professional employer organization (PEO) to a company is between 2% and 10% of all wages, or roughly $500 and $1500 per employee, per year.