EOR as an Alternative to PEO

In Mexico, choosing an employer of record (EOR) over a professional employer organization (PEO) is often the better option for legal, administrative, and compliance-related reasons. A PEO shares compliance responsibilities with the company, meaning the foreign employer still holds some legal liabilities. The employer must set up a legal entity, be involved in tax-related filings, and arrange for employee benefits.

An EOR, however, serves as the legal employer, meaning foreign companies can hire employees in Mexico without setting up a local entity. An EOR enables hiring in Mexico within days without registering a subsidiary and handles everything, including payroll, taxation, labor laws, employee benefits, and statutory compliance in Mexico.

If you’re interested in expanding into Mexico and a lack of speed or local expertise are among your top concerns, an employer of record (EOR) may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Mexico — often in as little as two weeks — without having to take on the cost and risk of establishing a local entity.

Safeguard Global has more than 16 years’ experience as an employer of record in countries around the globe. As an EOR in Mexico, we’re experts in hiring, employment, payroll, and benefits requirements for workers in Mexico, and can get you started right away with local HR experts to help manage your international employment needs.