PEO and EOR: Differences and Benefits for your company

Payroll and employee outsourcing for your company is a solution that many companies around the world take into consideration since it reduces costs, and risk, and provides the knowledge of highly experienced professionals in many industries and countries. PEO and EOR are two similar services but offer different solutions and alternatives designed to cater to all business needs.

The key to choosing the right one for your business is to decide how many of the HR tasks you’re willing to outsource and also what are your expansion plans for the future. Is your company interested in hiring abroad? Are you going to register a legal structure in another country? Do you need help with recruiting, hiring, and onboarding employees?


What are PEO and EOR?

PEO and EOR are both Human Resources Services that handle the Payroll of the company. They both are the perfect solution for companies that are interested in outsourcing some (or all) tasks and responsibilities regarding the employees, hiring, training, and more.

  • Professional Employer Organization (PEO)

    A Professional Employer Organization, also known as PEO is a company that offers services that are going to considerably reduce the amount of workload of the Human Resources Department of your company. This type of organization acts as a co-employer for your business, which means that there are always going to be tasks that need to be coordinated and reviewed by both parties.

  • Employer of Record (EOR)

    An Employer of Record, or EOR is also a service offered for companies that want to reduce the workload of their team, but also need help expanding to new countries where they don’t have a legal entity. An EOR is going to act as the legal employer, handle some of the HR tasks, as well as the payments, contributions, and tax declarations of your company.

What are the differences?

There are some differences between PEO and EOR services, that can affect the way they benefit your company, depending on your needs and current situation.


  • Acts as the legal employer, and assumes all responsibilities and liabilities

  • An EOR is perfect for companies expanding to new countries where they’re not registered

  • Service can be provided for a minimum of 1 – 5 employees

  • Responsible for the taxes


  • The PEO and your company share responsibilities and liabilities

  • The client must be registered in the country where the service is offered

  • Usually require a minimum of 5 – 10 employees

  • Tax reporting has to be done under your company’s (client) ID number

Which one is better for my company?

The answer to this question depends on the current situation of your company in the country of interest, considering the following:

  • Future goals

  • Objectives

  • Number of employees

  • Cost

  • Amount of HR responsibilities that want to be outsourced

Some businesses benefit from EOR since it reduces the barrier of entry in multiple jurisdictions, whereas with POA you can assign time-consuming tasks and better allocate your resources in HR.

How can Easyco help you?

Easyco has assisted entrepreneurs and big companies enter different countries across Latin America. We provide comprehensive services for PEO and EOR requirements and have local knowledge about employee outsourcing. All you have to do is send us a message with the information about your company and we’ll get back to you with a proposal that caters to all your needs.

Learn more about Easyco Services!

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Easyco also provides additional services to guarantee your company’s compliance, which include:

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