PEO vs EOR: which one do you need?
Use a PEO for US employees in places where your company already exists. Use an EOR to hire someone in a country where you have no legal entity. An EOR costs several times more per employee.
The core difference
A PEO co-employs your US staff: you remain an employer, and the PEO shares payroll, benefits and compliance work. An EOR (employer of record) is the sole legal employer of workers in places where you have no entity, usually abroad.
What each costs
PEOs typically charge $40–$160 per employee per month. EORs charge much more per person:
- Deel EOR: $599 per employee per month
- Remote EOR: $599 per employee per month (annual)
- Oyster: about $499–$699 per employee per month
- Pebl (formerly Velocity Global): about $599 per employee per month
Platforms that do both
Deel and Remote now sell a US PEO alongside their global EOR: Deel PEO at $125 per employee per month and Remote PEO from $99. Neither appears on the IRS CPEO list under its brand name.
Which to choose
- US employees, US entity: PEO
- Employees abroad, no local entity: EOR
- Both: a platform that offers both, or a PEO plus an EOR
Questions buyers ask
Is an EOR the same as a PEO?
No. A PEO co-employs alongside your company; an EOR is the sole legal employer, typically in countries where you have no entity.
Can I use an EOR in the US?
Some providers offer US EOR, but a US company with a US entity usually uses a PEO, which costs less per employee.