What is the difference between an EOR and PEO?

An EOR undertakes all legal duties that relate to employment and bears risks while acting as a mediator between the company and its staff in a foreign country. On the other hand, PEO just establishes a contract with the company alone, not its staff and doesn’t undertake any risk. They only manage the HR tasks of the company’s staff in another geographical location. PEO becomes the employer of record for tax purposes, filing paperwork under its own tax identification numbers. The client company continues to direct the employees’ day-to-day activities.