A professional employer organization (PEO) is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development. The PEO does this by hiring a client company’s employees, thus becoming their employer of record for tax purposes and Social Security purposes. This practice is known as co-employment.

Advantages:

1. No need to set up a company;
2. Start a business activity within 1-2 months;
3. Easy to expand or terminate employees;
4. Ideal for a short-term presence in the country you choose to be located;
5. Focus on the business, we manage the HR, legal and administrative tasks;
6. Market entry method with fewest taxation.

Company Situation:

How we hire our employees

1.  We guide you through country specific regulations like monthly withholdings, taxes, social insurances, and employment regulations
2. We provide you with an accurate estimate of monthly payroll costs
3. We draft a locally-compliant employment contract for you to review and customize
4. We send the client-approved employment contract to the employee for final negotiations
5. We hold a joint kick off call between Velocity Global, you and your employee
6. On-board employee on day 1 of employment
7. Monthly on time and accurate administration of payroll, expenses, commissions, allowances and local benefits
8. Shepherd you through terminations, whether voluntary or involuntary

Speed to satisfaction

1. We take the time to understand our clients and assess their needs, as well as the needs of the employees we support
2. You receive an easy to read, fully transparent monthly invoice from Velocity Global for all payroll and fees globally in US dollars
3. You are guaranteed incredibly fast turnaround, often within 24 hours or less – regardless of time zone differences
4. You and your employee have our support through the duration of the project, maintaining our commitment to spectacular service and responsiveness
5. You can focus on your employee’s success in the country while leaving the employment and payroll particulars up to us
6. You aren’t required to sign long-term service contracts so that you can stay flexible as business demands change

The Next Steps of International PEO

1. With a few simple questions, we’ll determine total cost, start date, and logistics for on-boarding your employee in country
2. You sign a contract directly with Velocity Global, and will then receive a monthly invoice for all payroll burden and fees in USD
3. We draft a locally-compliant employment contract while your employees continue to operate under your direction
4. Leave the monthly payroll processing up to us, so you can focus on your employee’s success in country

How do employees differ from a “Contractor”

While this list should not be considered exhaustive or complete, generally speaking:

1. A contractor is rarely paid variable comp – Example: commissions or bonuses
2. A contractor does not have business cards in the company name
3. A contractor is free to work for other people/companies – and often must prove to governing bodies that they are not employees
4. A contractor does not use company provided equipment or receive home office reimbursement