Why should we use International PEO?

International PEO enables companies to establish a presence in foreign markets without the complexities and restrictions of setting up an entity. Velocity Global becomes your Employer of Record (EoR) and hires members of your global team on your behalf through local, compliant employment contracts

International PEO gets you set up and operating in new markets in as few as 48 hours, with savings of up to 60% when compared to entity establishment. We handle all compliance and risk mitigation, and our experts oversee payroll and benefits considerations with support available around the world. This solution allows you to tap into global talent pools and new international markets quickly, affordably, and compliantly.  

Who should use International PEO?

International PEO benefits organizations of various sizes and sectors. However, it is particularly valuable to companies that:

• Are unsure if they will be in the market for five or more years
• Have international headcounts between one and 20 supported employees
• Cannot delay their hiring timelines and need to be operational in new markets quickly
• Do not have the extensive financial and internal resources required for global expansion
• Require a bridged solution between an acquisition close date and entity readiness

Will an International PEO provider hire candidates for me? 

Yes, we use locally compliant employment contracts to hire new members of your global team and become their legal Employer of Record (EoR).

Why use International PEO instead of paying a worker as a contractor? 

Employee misclassification is a considerable risk in this situation. If the employer manages an employee’s day-to-day responsibilities, or if the employee reports only to that employer, the employee is not a true consultant. Misclassification can result in severe fines and penalties, so if you are unsure of the status of any employee, partnering with an International PEO provider ensures compliant hiring.

Will you pay/deduct taxes from the supported employee’s payroll? 

Yes, we withhold individual taxes monthly and follow all local tax laws in their region.

Do you assist with paying the necessary contributions in-country?

Our monthly invoices also include “employer burden”— these are mandatory taxes and other payments that are required by local governments for employers to pay into social security and other public programs. Our team of local experts maintains up-to-date information on the payment schemes in each country, calculates the amounts due based on the supported employee’s salary, and provides a detailed breakdown in your invoice.

Do you charge fees for offboarding?

No, there are no fees for termination. However, we do require 30 days’ notice to offboard any client. Please keep in mind that the statutory notice period for the supported employee in a given country may be longer than 30 days by law. Some countries have unique mandatory severance periods and payouts, which our team helps you navigate.

If you must offboard a worker, we ensure compliance with local severance requirements and termination regulations. Whether it is voluntary or involuntary, we assist our clients through the country-specific nuances to ensure a smooth separation.

Do you broker a deal with local partners, or are you involved through the entire International PEO process?

Each of our clients and supported employees rely on our global network of experts, which allows us to manage and control our customers’ experience. We provide our clients and supported employees with local experts who quickly answer questions on pay, benefits, and more.

Velocity Global’s regional teams remain up-to-date with any local employment law changes and perform quarterly reviews to ensure accuracy and compliance with these laws.