Introducing: Gusto Global

An employer of record (EOR) is an employment services provider enabling you to employ people in other countries while complying with local tax and employment laws. An EOR handles everything required to hire, pay, and manage employees, including payroll, benefits, taxes, stock options, and local compliance.

Through an EOR, a company can hire employees in another country without having to set up a local entity, which can be expensive and take months. Having an EOR in place can help an SMB quickly, affordably, and compliantly hire international employees.

Many EOR providers use a network of different outside vendors for each country entity which lets them expand to new countries quickly, but may compromise the service and security that you get. For their customers, this can lead to:

• Varying levels of service quality due to lack of control over vendors
• Additional fees and costs due to the involvement of multiple vendors
• Exposure to multiple points of risk by passing intellectual property between entities
• Increased exposure to regulatory non-compliance
• Delays in customer service due to reliance on different vendors

EOR providers that operate through owned entities own and manage each country entity directly to ensure that their customers have a seamless experience when hiring globally. Through an EOR with owned entities, customers benefit from:

• Direct and reliable services, ensuring a better experience for businesses and their employees
• Transparent pricing with less administrative overhead, resulting in lower costs
• Guaranteed stronger protection for intellectual property to ensure your IP stays in-house
• Data protection and minimized risks by limiting the sharing of sensitive data with third parties
• A single point of contact for all global employment needs, simplifying issue resolution and streamlining answers to questions
• Established legal presence in the countries where the EOR operates, enabling them to understand and navigate local employment laws accurately

Selecting an EOR with 100% owned entities, like Gusto Global, through our partnership with Remote, customers access best-in-class service and compliance management when hiring across the globe.

While contractors are a valuable component of any team, hiring international team members can come with a variety of benefits, especially for fast-scaling, high-growth startups and SMBs:

• For many skilled roles, it can be hard to find talent with the right expertise. In a competitive market, companies can get a huge advantage if they’re able to offer full-time employment and benefits customized for the norms of a specific country. 
• Having on-the-ground international employees can make it easy to enter a new market and sell to customers in their local language.
• Hiring employees in other countries can increase round-the-clock coverage for sales, customer service, etc. – resulting in better customer experiences overall.
• In many countries, there are also stronger intellectual property agreements in place when businesses hire employees rather than contractors.
• Finally, it’s important to note international employees can feel more connected and more part of the team – especially when they get access to the same tools and work experiences as their peers in other countries.

Ultimately it’s up to each business to determine their needs. Either way, we’re here to support them through offering international contractor payments in more than 120 countries, and now the ability to hire international employees through today’s partnership with Remote.

While both an EOR and PEO handle payroll, benefits, HR, withholding, and reporting, there are a few key differences. To use a professional employer organization (PEO), a business needs to have a legal entity set up in that specific country. Setting up a legal entity can be expensive and take several months.

By contrast, setting up an EOR can be much faster, and there’s no need to have a legal entity in each country an SMB plans to operate in. Having a trusted partner like Gusto and Remote as an EOR can also help SMBs feel confident about entering markets with unfamiliar local tax and employment regulations, as we have the expertise to navigate these laws and proactively ensure they’re compliant.

At this time, Gusto Global is designed for full-time, salaried employees in the countries we support.

Gusto Global is starting in beta in Canada now and will be available in additional countries in the weeks ahead. Remote operates in 75+ countries around the world.

For pricing, please reach out to us at (800) 936-0383 or [email protected]