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Professional Employer Organization (PEO)

Choosing our SaaS based PEO/EOR Solution enables you to build and manage 100% pure remote teams and expand into new markets 90% faster.

Table of Contents

What is a PEO?

PEO – a Professional Employer Organization is an entity that partners with a company and makes onboarding, managing, and paying employees easier.

The trusted third party shares multiple employment responsibilities and liabilities with your company, including payroll processing, taxes, deductions, employee benefits, etc.

What is a Global PEO?

A Global PEO handles all the functions of a PEO but on a global level. It understands the nuances of managing employees across countries with different cultures, time zones, and legal complexities. A global PEO can help companies hire employees across the world irrespective of whether they have a physical entity in that country or not.

How Professional Employer Organization Works

Collaborating with a full-fledged professional employer organization allows you to handle the HR activities of your company in a hassle-free manner.

Being an independent organization with industry specialists, professional employment organizations come in handy to manage daily HR functions, including payroll, tax compliance, bonuses, retirement plans, health insurance, and other employee benefits efficiently.

When you avail of professional assistance from a PEO, you still manage the roles and responsibilities of your employees while the PEO takes care of legal compliance, taxes, and other HR-based policies on your behalf.

Business owners have dilemmas over the co-employment business model. But, it is all based on misconceptions. It isn’t a daunting idea if you understand the core responsibilities of a PEO and how to unleash its benefits for your business.

When using PEO services, you still manage your employees’ roles and responsibilities. The PEO, on the other hand, is in charge of legal compliance, taxes, and other HR-related policies.

Why Your Company Needs a PEO

Managing HR-based activities in a workplace setup is a difficult task in itself because it involves everything from processing payroll to filing taxes.

Now, imagine doing this for your remote employees who work for you from various parts of the world. Carrying out HR activities on a global scale is a complex process because labor laws and tax policies differ from one country to the other. To add to the complexity, Governmental bodies keep updating them from time to time. This is why you need a reliable Global PEO.

A global PEO is a B2B arrangement where the professional employer organization handles specific aspects of the employment duties for a business like yours. With an international PEO, you can hire, manage, and pay employees globally without breaking a sweat. PEOs generally help with:


A PEO can take care of month-on-month payroll while remaining compliant with the local tax deductions and components like pension, social security, etc.


There may be some additional benefits like insurance, dental coverage, or pension that you would like your employees to enjoy. A PEO can make all these additions accessible just through a click. Multiplier goes a step ahead and lets you allocate bonuses and ESOPs in a few straightforward steps.


A PEO has a team of compliance officers for each country who ensure that all the local labor laws are being followed while managing your employees. These teams are experts in payroll compliance and reporting, HR compliance, tax laws, insurance trends, and local labor laws.


Sometimes, a PEO also has a team of HR professionals who can collaborate with your internal HR team to develop various strategies and solutions.


Some PEOs also offer end-to-end hiring solutions. This includes hiring, employee training, engagement, and performance management.

PEO for Small Businesses

Small business owners don’t always have the time and expertise to manage human resources. This is mainly why a PEO for a small business can be beneficial. Business owners can trust PEOs with functions like payroll and hiring and can devote more time to building and selling their products.

How does a PEO relate to Co-Employment?

Co-Employment is when professional employment organizations collaborate with companies to manage hiring, payroll, compliance, and taxes. Here, the companies are responsible for their employees’ day-to-day handling, and the professional employment organizations are accountable for the administrative HR-related functions. In co-employment, the roles and responsibilities of both parties are well defined and structured.

Difference between PEO and Employee Leasing

PEO and Employee Leasing are two terms that are often used interchangeably. However, there is one difference between them. While PEOs handle payroll and compliance-related tasks for a client, employee leasing firms supply their own employees to a client for a fixed period of time. Once the assigned work is completed, these employees return to the leasing firm.

Difference between a PEO and an HR Outsourcing Company

PEO vs HRO is a very common debate. However, a significant difference between a PEO and an HRO is that the PEOs are ultimately responsible for the employees. HROs are hired by companies to collaborate with the internal HR teams and deploy new strategies and solutions. In this case, the ultimate responsibility of the employees remains in the clients’ hands.

Difference between and PEO and a Payroll Company

A payroll company handles the payroll for your employees according to your requirements. Here, you would still be responsible for deductions and tax compliances. However, a PEO payroll makes sure that the compliances and regulations for the particular country/state are taken care of. Moreover, PEOs enable you to give additional benefits to your employees, such as insurance and bonuses.

PEO Benefits


Human resource management on a global scale is a time-consuming process. With PEO, you can allow specialists in the field to take care of the process for you. This way, you do not have to spend time on resource management and instead could use the same to grab profitable business opportunities.


Accuracy is vital as HR management involves the use of numbers for everything from employee payroll processing to tax filing.

When you rely on PEOs for the HR functions of your company, you can expect exactness every step of the way. Yes, the experience is entirely different when an organization with HR management as its core responsibility replaces your in-house team, which also has other organizational duties.


Report generation is one of the most complex tasks involved in the HR management section of the company. If you still rely on manual methods to generate and maintain these records, it is high time to go for a worthy alternative.

A professional employer organization can take care of channelized recordkeeping on your behalf, and you can easily extract reports out of the authentic data whenever necessary.

With a PEO to back you up, you can get real-time insights into the HR management process, giving maximum transparency into what is happening at any given moment.


Isn’t it challenging to meet the changing rules and regulations to manage your global employees? But this isn’t a choice but a necessity.

A PEO maintains updated tax tables and also has a constant eye for dynamic social laws across countries. This way, you can eliminate all the regulatory risks and seamlessly carry out your HR operations.

Costs involved in PEO Services

Most Global PEOs charge their fee depending on the services you seek. The rates may vary with each component you add to the agreement, depending on the benefits and insurance plans you choose for your employees.

Typically, the fee is a flat rate for each employee being managed. Depending on the contract, it can also be a flat monthly or an annual fee. Some PEOs may also charge a percentage of the employee’s salary.

How to choose your Professional Employment Organization

When on the hunt for help from professional employment organizations, look for a PEO that

  1. Can meet your specific requirements and can offer customization
  2. Has strong references from other companies in your industry
  3. Provides expertise in local and international compliances, benefits management, healthcare & insurance benefits
  4. Are accredited by the ESAC or certified by the IRS
  5. Can offer services in your business locations
  6. Have good fiscal stability and a strong track record

Keeping in mind all these points, thoroughly research on which PEO best fits your requirements.

Common Questions about Partnering with a PEO


A PEO can help take administrative tasks off your HR Manager’s shoulders, giving them more time to focus on core HR strategies in culture, management, and expansion.


Small businesses can benefit tremendously from PEOs. You can access healthcare plans, benefits management, and bonuses for your first group of employees while taking care of the product and sales. Moreover, PEOs can help you sail through the complexities of payroll and legal compliances.


No, your employees will truly remain yours while the PEO manages the back-end administration of payroll, benefits, insurance, and taxes.

What kinds of businesses can benefit from PEOs?

In hindsight, all kinds of businesses can benefit from PEO services. Generally, small and mid-size enterprises partner with PEOs to simplify their payroll processes. However, larger organizations are also known to enjoy the benefits a PEO can bring to the table.

What does a PEO not do?

We are clear on the things that a PEO will help you with; however, some things that a PEO does not do are:

  1. Make strategic/management decisions for your company
  2. Decide salary components for your employees or negotiate on your behalf
  3. Help generate sales of help with marketing efforts
  4. Decide/approve working hours and days off for your employees

What Makes Multiplier the Best PEO?

Multiplier is a hi-tech platform that allows you to seamlessly onboard, manage, and pay your international employees. The best part is that you don’t need a local entity. You also gain complete ownership of your employees while we manage them for you.

100% statutory compliance is our promise no matter the number of locations involved.

With automation, Multiplier offers maximum precision and transparency in the resource management process. Plus, you get real-time insights to monitor all activities we carry out on your behalf.

We have an eye for legal updates, which helps us carry out global payroll in the most efficient way at all times.

Our clients are our top priority, and your approval is our command. Yes, we carry out internal payroll and other HR activities only after you approve them with a click.

Try Multiplier once, and smoothly sail into effortless talent onboarding!


Frequently Asked Questions :

Q. How does Multiplier’s PEO services differ from traditional HR outsourcing?
Multiplier provides extensive and seamless onboarding along with payroll management for global employees. Also, Multiplier helps simplify your employment responsibilities and liabilities within the business.

Q. How can a PEO help with employee benefits and insurance?
PEO simplifies the process of managing employee benefits and insurance aligned with local labor laws, thus making the process cost-effective and time-saving.

Q. What are the benefits of using a PEO for HR and payroll services?
Using a PEO for HR and payroll services can result in time and cost savings, compliance support, access to better benefits and insurance rates, and reduced legal and financial risks for businesses.

Hiring and onboarding using Multiplier ensures you hire remote talent with locally compliant, fool-proof job contracts, offer emphatic benefits and disburse salaries accurately with absolutely nil errors in payrolls.

Hiring and onboarding using Multiplier ensures you hire remote talent with locally compliant, fool-proof job contracts, offer emphatic benefits and disburse salaries accurately with absolutely nil errors in payrolls.​

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