What is a PEO ?
PEO, or Professional Employment Organization, also known as EOR ( Employer of Record ) or GEO ( Global Employment Organization ) refers to a company which employs staff on behalf of a client company and provides employee management and administrative assistance such as payroll, social insurance, tax and visa sponsorship in a foreign jurisdiction. Meanwhile, the employees carry out the day to day work assigned by the client in the same way as their traditional employees. This arrangement reduces cost and administrative burden and resource drain for the client company, improving focus, and improving the competitive edge.
See the diagram below:
