Book a demo

Third-party vendors in the HR space are particularly helpful for companies that want to streamline their operations. Companies like FoxHire offer employers a way to outsource the risks and complexities of labor while allowing their internal teams to focus on the mission of the company. Simply put, we handle all the small details of managing your workforce so you can focus on the art and science of business building. But when you start to look at outsourcing your HR, you’ll find two types of third parties cropping up: a PEO, or Professional Employer Organization, and an EOR, or Employer of Record.

What’s the difference between a PEO and EOR?

Bottom line, the main difference between a PEO and and EOR is the concept of “co-employment”. EORs do not offer co-employment, while PEOs do.

What is a PEO?

A PEO works with their client companies to handle processing their payroll, administering benefits, handling tax filings, and more. Some of the characteristics of a PEO include:

  • Co-employment of your workforce. This is a big point of differentiation between an EOR and PEO. With a PEO, you are both legal employers of your workforce. However, you handle the daily oversight of your employees while the PEO does the paperwork.
  • If you work with a PEO, you must still register your business in the state where you’re hiring.
  • A PEO provides a shared employee pool for better purchasing power when looking at employee benefits.
  • A PEO only handles your full-time permanent workforce. You must still handle any temp, part-time, or flex talent.

As you’ll see, a PEO has some big differences from an EOR. Which business partner you choose depends on your resources and overall operational plan.

What is an EOR?

An EOR has a broader scope for what they can do for your business, by handling everything from onboarding to payroll, taxes, benefits, unemployment, workers’ compensation—and more. Some of the characteristics of an EOR include:

  • An EOR is the full legal employer of your talent, and as such, is responsible for handling the risks associated with labor laws and other compliance issues in each state you do business in as well as nationally.
  • An EOR is registered in all states, so you can look for talent anywhere and let them handle the paperwork.
  • An EOR also offers a shared pool for employee benefits and manages the complexities of these arrangements on your behalf.
  • An EOR handles all types of employee relationships, from full-time permanent workers to part-time, freelance, and more.
  • An EOR is usually quite scalable, so they can handle dozens or hundreds of employees as your business grows.

Now that you understand the difference, which HR outsourcing partner is better for your business?

Why Consider FoxHire as Your EOR?

At FoxHire, we understand the complexities of your business. That’s why we developed an easy-to-use online portal to manage the HR functions for your business. We specialize in the complexities inherent in the staffing industry, where thousands of contractors and employees go out every day to employers. If we can keep these arrangements all straight (and compliant), imagine what our team and our technology can do for your business.

Do You Know the Difference Between a PEO and EOR?

FoxHire helps companies of all sizes manage their HR benefits. Unlike a PEO, we handle everything related to your human resources. From payroll, insurance, and worker’s compensation to taxes, onboarding, and more, we are an EOR dedicated to making your life easier. Call on us. We can help.

You may also be interested in…


Innovation in Staffing: A Back Office Revolution for Staffing Agencies

In today's dynamic business landscape, staffing agencies play a crucial role in...

Case study

New Zealand Based Company Expands to USA with FoxHire

How can an international company expand to America and hire new employees?...


Why Contract Staffing Should Be in Your Playbook

Are you a direct hire recruiter looking to grow your business? Contract...

A complete Employer of Record (EOR) platform for onboarding, payroll, and compliance – so you can hire without the hassle.