Here are a few common questions we are often asked by people interested in payroll or employer of record services in Latin America. If you can’t find the answer to your question, please reach out to us to find your answer!
A PEO is a Professional Employer Organization. PEOs enter into a co-employer relationship with clients, which allows them to share and manage many employer-related liabilities and responsibilities. Companies outsource their human resources to the PEO while maintaining all the other operational aspects of the company. The PEO provides human resources services, employee benefits, and payroll administration.
When you utilize a PEO type service in another country (outside your home country) and you do not have an entity, you are not entering into a co-employer relationship (since you do not have an entity set up). In this case you would be using what is called an Employer of Record (EOR).
An employer of record (EOR) is the entity in which employees are legally employed (holds the employee contracts). The employer of record relieves you from the burden of having to manage a foreign entity, bank accounts, labor regulations, tax laws, payroll management, and risk management. By using an employer of record in the country where you want to expand, you have a partner already on the ground so you can focus on the core operations of your business.
When expanding into new markets, there is much work to be done before you even start selling your products or providing your services. Once you have your entity set up, bank accounts in place, and all the administrative overhead that goes along with owning a company, you then need to hire employees. Since you do not have the time or the desire to become a human resources expert in multiple countries, and at the same time grow your business, an EOR can help you hit the ground running. A quality EOR can help you manage your human resources, become more strategic and systematic about the success of your company, and realize greater efficiency and productivity. A partner such as ITOS can help free you so you can move your organization to the next level.
An ASO is an administrative service organization. It provides outsourced services to manage administrative and/or HR needs for your company. When using an ASO, your company retains all employment-related risks and liabilities. This type of service can help manage in country payroll processing as well as administer company benefits.
We provide services in the following countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad & Tobago, Uruguay, and Venezuela. If there is a country not listed, please reach out to us. Because of our focus on Latin America we have many resources that we can use to help you.
We have offices located in Colombia, Mexico, Brazil, and the USA. You can find our addresses and phone numbers here. Additionally we have team members located in Costa Rica, Venezuela, Chile, and Peru.
ITOS has been providing services to multinational companies in a wide variety of industries for almost 10 years. These industries include financial, oil & gas, software, real estate, raw materials, services, energy, utilities, and communications.