Global payroll vs EOR
– what’s right for you?
Firstly, you may not need an Employer of Record (EOR), so the more cost-effective global payroll solution could be ideal for you.
Hiring internationally is exciting but can also bring a lot of questions about payroll. Between compliance, taxes and country-specific regulations, things can get tricky fast. That’s where PeoplePay comes in – we will simplify the process.
Whether you opt for direct global payroll or choose an EOR, you won’t need to establish a legal entity to pay your team in most instances – we’ll ensure you’re fully compliant with local regulations, guaranteeing payroll accuracy and peace of mind.
Need help choosing? Speak to us today.
Which Payroll solution fits your team?
What is global payroll?
Global payroll is the more cost-effective option. With it, you remain the legal employer – maintaining full control over your workforce – while we manage all the complexities of paying your international team. We ensure accurate, fully compliant and on-time payroll in over 140 countries, without the need for a local legal entity.
You’ll benefit from:
- In-country employer incentives
- Flexible pay schedules
- Full compliance with local tax and employment laws
- Global payments without needing a local bank account
In many cases, global payroll is the most cost-effective option – by a significant margin. For example, if you’re hiring in the UK, our payroll solution could save you up to £10,500.00 annually compared to using an EOR.
With our fully managed service, you’ll also have access to a full suite of employment and onboarding documentation to be used as your team grows – all managed by a dedicated Account Manager, providing real human support.
What is an Employer of Record (EOR)?
An EOR is your international hiring partner. We become the legal employer of record, handling everything from employment contracts to local compliance, payroll and tax submissions. You still manage the employee’s day-to-day work — we just take care of the admin.
As an EOR takes on legal and administrative responsibility, this option comes with higher monthly costs per employee, compared to global payroll. While it offers speed and convenience, it’s not always the most cost-efficient route – especially for long-term hires.
An EOR typically covers:
- Employment contracts
- Onboarding and right-to-work checks
- Monthly payroll processing and tax submissions
- Social security contributions and statutory benefits
- Local compliance and audits
- Termination procedures and offboarding
Want to explore which option suits you?
When to choose global payroll vs EOR
Choose global payroll if:
- You’re looking for the most cost-effective, fully compliant international payroll solution
- You are looking to expand into a new region and want to employ directly
- You don’t have a legal entity in the country where your employee is based
- You want to maintain full employer control
- You plan to hire multiple employees in the same location long-term
- You want to benefit from local employer incentives
Choose EOR if:
- You need to hire fast without navigating employment law
- You want a hands-off approach to compliance and payroll
- Your team member needs visa or work permit support
- You’re testing new markets or making short-term hires
- You’ll be operating in a country where a legal entity is required (Hong Kong, Japan, Norway, Singapore and the UAE)
For example, imagine you’re a tech start-up wanting to hire a developer in Germany. Our global payroll solution would be perfect. We would manage all local registration, compliance, payroll, statutory reporting and payment elements on your behalf, as part of our compliant local service. All of this would then be wrapped up into a single dedicated point of contact via PeoplePay Global.
Still unsure? Get expert advice on the best solution for your business.
Payroll vs EOR: Frequently Asked Questions
How do I know which solution is best for my business?
For most businesses, global payroll is the most cost-effective and versatile choice. It’s ideal if you want to maintain control and avoid the overhead of an EOR. That said, in certain countries where a legal entity is required, EOR may be your only compliant route. Talk to us for tailored advice.
What are the costs involved with payroll Vs EOR solutions?
Global payroll is typically cheaper because you remain the legal employer and avoid EOR service fees. EORs can cost significantly more due to the additional legal, tax and compliance services provided. We will provide a transparent quote, customised to your needs.
Can EORs and payroll solutions be used together?
Absolutely. Many businesses use EOR for new markets and switch to payroll once they establish a local entity. We seamlessly support both options, all managed through your dedicated Account Manager, ensuring you have a single point of contact at all times.
When is a legal entity required?
In some countries – Hong Kong, Japan, Norway, Singapore and the UAE – you must have a legal entity in order to run compliant payroll. In these situations, an EOR solution may be the better option, especially if you’re not ready to establish a local presence. If you need advice, chat with us [link to contact us page] and we’ll discuss what is best for your situation.
Want to make international hiring easy? Get in touch today.