Business Development

EOR Vs PEO: What’s The Difference?

Published on: February 24, 2023

Last Updated on: July 24, 2023


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To fulfill cross-border hiring requirements, many businesses turn to EORs and PEOs. While both EORs and PEOs are external human resource partners, there are differences in terms of how each supports a business and its global team.

If you’re looking to know the differences between Canada EOR and PEO services, continue reading. The following sections will not only provide the differences but also explain some of the limitations and benefits of each. So read on to discover more.

What’s PEO?


PEO means a professional employer organization. PEO partners with a company to offer human resource-related services such as c, sharing the operational functions burden and liabilities while at the same time monitoring compliance.

The main advantage of a global PEO is to help a company expand into new markets and a worldwide pool of talent. Security and guarantee of having all hiring processes within worldwide compliance regulations are additional benefits.

With PEO services, you can expand your business with peace of mind, knowing that it’s operating according to the employment laws and regulations of the country in question.

What’s EOR?


EOR stands for the employer of record. It’s a third-party entity that enables a company to look for great talent overseas. An employer of record helps the business achieve this without having to set up a legal entity in the countries where workers are located.

Simply put an employer of record functions as a legal employer, meaning all employer-employee relationship obligations aren’t the company’s responsibility. A trustworthy employer of record singapore handles all payroll-associated tasks, including taxes and deductions, salary payments, and insurance contributions, among others.

EOR services offer various benefits, which range from financial planning for employment investments and third-party staffing to automated and improved human resource functions and compliance monitoring.

What’s The Difference between EOR And PEO?

Difference between EOR And PEO

At first glance, these two abbreviations seem the same in terms of the services they offer. However, there are many differences.

It’s vital to know all these differences in order to make an informed decision. An EOR handles everything from social taxes to legal liabilities for full-time workers globally to simplify a company’s human resource management.

When it comes to PEO, it shares onboarding and managing responsibilities for independent contractors and full-time workers. PEO handles all human resource functions as it acts as a co-employer. In order to hire great talent from across the world, you need a legal entity when dealing with PEO.

Final Thoughts

EOR is a perfect option if you want to outsource essential human resource services and when dealing with contractual or temporary employees. On the other side, a PEO provides access to all of its offerings that lift your experience while dealing with full-time employees.

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Arnab Dey

Arnab is a passionate blogger. He shares sentient blogs on topics like current affairs, business, lifestyle, health, etc. To get more of his contributions, follow Smart Business Daily.

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