How To Hire Remote Workers Legally With a Global PEO Solution

New Horizons Global Partners share how a Global Professional Employer Organization solution can help employ remote workers in the age of COVID-19

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The function of a Global Professional Employer Organization (PEO) is to support businesses with international expansion and help them legally employ workers who are based overseas. A Global PEO provides essential assistance to companies undergoing expansion and remote hiring; they do this by managing fundamental employer responsibilities in each country that an employee resides. Since the COVID-19 pandemic descended early last year, the rise in remote workers has been exponential. As well as setting up current employees to conduct business from their homes, companies have also had to maneuver the onboarding process of new remote employees. A Global PEO company like New Horizons Global Partners can provide a solution to the challenge of legally hiring remote workers. Here we examine the advantages of using a Global PEO company to hire remote workers.

Guillaume Vergnaud

Simplify the tax process

Hiring remote workers means carefully considering the legal and tax classification of those workers in the country in which they reside. Guillaume Vergnaud, Managing Director, Asia-Pacific at New Horizons Global Partners observes: "A Global PEO will ensure that staff are paid in accordance with local tax and employment laws. This will protect the company from facing penalties and other issues with taxation authorities, removing the headache of employee misclassification."

It’s worth noting also that, as well as payroll taxes, a global PEO will ensure that employee benefits are paid out in accordance with local laws.

Streamline multi-country expansion

When a company partners with a Global PEO, the PEO becomes the legal employer in each country that an employee works. Vergnaud observes: “This makes the act of expansion over several countries much simpler as a company doesn't have to devote time to understanding each country's payment requirements and processes. The company can then dedicate itself solely to the expansion of its business”.

Smoother staff onboarding 

Onboarding new staff can be time-consuming. It requires careful planning without factoring in the challenge of onboarding several different staff members across many other countries. “A Global PEO simplifies this process by taking on all of the onboarding responsibilities required for each new employee,” shares Vergnaud. This means, no matter where they are based, all staff of an organization receives compliant employment contracts and training in essential legal requirements, like data protection regulations.

Speed up the expansion process 

New Horizons Global Partners can have remote workers legally employed within another country in as quickly as forty-eight hours. This means a faster entry to market compared to setting up a subsidiary or legal entity: company expansion is a complicated process, and the faster a company can have its new staff on the payroll, the sooner it can put them to use.

Overall, partnering with a Global PEO makes the process of hiring remote workers much less stressful. A Global PEO has the knowledge and understanding to hire remote workers in full compliance with local laws. In the time of COVID-19, where remote workers have become the backbone of almost every organization, any assistance in building up the remote workforce should be welcomed.