What A PEO Can and Can’t Do

A PEO can be a great assistant to expanding businesses, allowing you to expand into new markets without a legal entity. But, it can be quite daunting handing over aspects of your business expansion to an external company. Likewise, it can be confusing to know what a PEO can actually do for your business. To answer these questions, and hopefully put your mind at ease, we are running through what a PEO can and can’t do. 

What is a PEO?

First things first, let’s address one of our most frequently asked questions: what is a PEO?

A PEO, or Professional Employer Organisation, provides employee management for businesses looking to expand on a global scale. 

What can a PEO do?

A PEO covers a whole host of employment management services, this includes:

  • Handling employment contracts

  • Complying with tax and National Insurance regulations 

  • Providing employee benefits and insurances

  • Facilitating visa applications 

  • Running payroll

  • Onboarding employees

A PEO also acts as your legal entity in whichever country you are expanding into. Typically, setting up a legal entity can be a lengthy, not to mention costly process. Therefore, by using a PEO you gain a simpler yet still fully compliant route to market.

As Leap29 are also a global recruitment partner, by acting as your PEO we can also help with international recruitment helping you find both temporary and permanent top talent for your business and making your expansion even easier. 

You can find out more about what a PEO can do here.

What can’t a PEO do?

While a PEO may manage the employment of your international hires, your employees are still working under you and therefore a PEO is not responsible for your employees. This means a PEO cannot:

  • Train or support your employees

  • Decide how much an employee is paid

  • Make hiring or firing decisions – although they can help with the legislation around this

  • Manage your employees on a day-to-day basis

  • Be your employee’s direct point of contact

A PEO, or Employer of Record, is a great option to expand your business globally without being burdened with the complexities of establishing a legal entity. If you would like to find out more about what a PEO can do for you, contact our experts today.