Employer of Record in Latin America
Establishing a distributed remote team in Latin America comes with challenges like hiring the right talent, managing their payroll, staying compliant with local laws, and more. These tasks are essential, but also very daunting.
With an Employer of Record (EOR) in Latin America, you can now have a team of your own without setting up a local legal entity. Skuad is an Employer of Record that simplifies hiring and compensation of full-time employees in a foreign country.
Key Payroll and Employment Trends and Stats in the Latin America
Human Resource (HR) strategy work in Latin America is in high demand, with payroll being the key focus. To gain efficiency in their current Latin American (LATAM) operations, an increasing number of global and regional corporations are consolidating administration or shifting to shared services.
- The LATAM payroll market is rapidly developing.
Several years ago, Latin American in-country payroll providers used heterogeneous systems that were only cost efficient due to low-priced labor pools. Companies in LATAM are currently focusing on automating and consolidating payroll. - Employers in the United States desire to spread their shared services beyond their borders.
In addition, many firms who have implemented a Global Business Services model in Finance and IT are wanting to expand their assistance to back-office activities such as payroll. - New labor rules add to the complication.
Legislative changes are regular in Brazil, Argentina, Mexico, and other LATAM nations, necessitating modifications to HR administration, compensation calculations, and payroll regulatory reporting, all of which are complicated and prone to ambiguity. Hiring LATAM payroll providers for assistance with tax services, banking, and gross-to-net processing and reporting may be quite beneficial in such situations. - According to Gallup's State of the Worldwide Workplace: 2021 Report, 45 percent of people in the region say the epidemic has had a substantial impact on their lives, and the proportion of employees who have lost their jobs or businesses (31%) is close to the global average.
- Over half of those working in Latin America and the Caribbean during the outbreak lost pay (57%) and worked fewer hours (57%) while 58% temporarily stopped working.
How does an employer of record (EOR) work?
Skuad is an Employer of record in Latin America, which serves as a Global HR Platform for companies looking to hire and pay remote talent. Partnering with an employer of record allows organizations to legally and effortlessly hire the best talent in Latin America, without setting up a local legal entity. Skuad manages the hiring and onboarding of employees, runs payroll and provides statutory benefits, gives ongoing legal and HR support, and much more.
Skuad provides Employer of Record services in the following countries of Latin American Region:
Talk to our People Ops experts to discuss your requirements and see how Skuad can help. Book a demo today!
FAQs
What is an Employer of Record in Latin America?
An Employer of Record (EOR) in Latin America, is a third-party organization that legally employs your workforce without a local entity and compliantly manages payroll, taxes, benefits, devices, work visas, background checks and more.
What is the difference between an employer of record and a PEO?
An Employer of Record (EOR) becomes the legal employer of your workforce and manages payroll, taxes, benefits, compliance and more without a local entity whereas a Professional Employer Organization (PEO) co-employs your employees with shared responsibilities of payroll and HR via a local entity.
What is the difference between an employer of record and a staffing agency?
An Employer of Record (EOR) legally employs your workforce and compliantly manages payroll, taxes, benefits etc, without a local entity whereas a staffing agency only acts as your recruiting partner i.e., finding suitable talent for open positions at your company, without taking any responsibility for employee management and compliance as per local laws.
How much does EOR cost in Latin America?
The Employer of Record in Latin America usually costs between $600 to $2000+ per month depending on the EOR you choose. For instance, the EOR provided by Skuad (A Payoneer Company) starts from 199 USD per employee.
Who is the best employer of record in Latin America?
Skuad, a Payoneer company, is one of the best employer of record in Latin America. Partner with Skuad EOR to compliantly hire employees and manage payroll, benefits, taxes and more without a local entity.
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