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More and more remote companies use PEOs. No need to incorporate in 50 states, you just pay someone else to.
by kgxkgxkhxoh 5y ago
More and more remote companies use PEOs. No need to incorporate in 50 states, you just pay someone else to.
- truffdog 5y agoI worked at a company that switched to a PEO, people seemed weirdly outraged.
- enra 5y agoWe use it too, but doesn't change the fact the the employer needs to tell the PEO where the employee is located. PEO also have limits, like MA example, the company still needs to open the unemployment accounts directly with the state. Sales tax is another thing that you have to do directly. My point was that main reason companies need to know where the employee is compliance, employment law, taxes and potentially IP protection. While the employer wouldn't care about the location because of pay scale, they still need to know for other reasons. Until we can all live in some United Kingdom of the Internet, the unfortunate fact is that local laws apply to companies and employees when the employee resides in the jurisdiction.