GLOBAL Hiring Guides

Your Guides To Hiring International Employees

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FAQS

Frequently Asked Questions About Hiring International Employees

Questions and Answers

What are the legal requirements for hiring employees in different countries?

When hiring employees internationally, several key legal factors must be considered to ensure compliance with local regulations. These include drafting locally compliant employment contracts, adhering to wage and hour laws, managing tax obligations, and ensuring proper employee classification (contractor vs. full-time). You'll also need to provide mandatory benefits such as healthcare, pension contributions, and paid leave, as required by the country’s labor laws.

An Employer of Record (EOR) helps manage these complexities by acting as the legal employer in the country where you hire. The EOR takes care of drafting compliant contracts, managing payroll, withholding taxes, administering benefits, and ensuring proper worker classification. This allows you to hire employees quickly while staying fully compliant with local laws, without the need to establish a legal entity in each country.

How do payroll and taxes work when hiring internationally?

Employers must navigate local tax laws, social security contributions, and other mandatory deductions specific to each region. The company is responsible for setting up compliant payroll systems, ensuring correct tax withholdings, and providing any legally required benefits like paid leave or health insurance.

To simplify this process, many companies use an Employer of Record (EOR). An EOR acts as the legal employer in the country, managing payroll, taxes, and compliance, while the hiring company focuses on day-to-day management. This approach helps reduce cross-border tax risks and ensures that all legal obligations are met in each country.

How to stay compliant when hiring internationally?

To stay compliant while hiring internationally, you need to understand and follow local labor laws, tax regulations, and employment standards in each country. This includes ensuring proper classification of workers (employee vs. contractor), setting up compliant payroll systems, adhering to tax withholdings, and providing the correct benefits.Partnering with a global employment provider, like an Employer of Record (EOR), can help manage compliance by handling legal and HR responsibilities on your behalf, ensuring your business stays aligned with each country’s regulations.

Can I hire employees in countries where I don’t have an entity?

Yes, you can hire employees in countries where you don’t have an entity by using services like an Employer of Record (EOR), Professional Employer Organization (PEO), or Global Employment Organization (GEO). These options let you expand globally without needing to set up a legal entity in each country.

Employer of Record (EOR)

An EOR acts as the legal employer for your international hires, handling tasks such as:

  • Payroll
  • Employee benefits
  • Local labor law compliance
  • Immigration support
  • Onboarding

Professional Employer Organization (PEO)


A PEO shares employment responsibilities with your company, helping manage your international workforce, including payroll, benefits, and compliance, without needing a local entity.

Global Employment Organization (GEO)


A GEO works globally, helping you hire employees in different countries without setting up local operations.

Alternatively, you can hire remote workers as independent contractors. This option offers flexibility while still allowing for full-time roles and some benefits.

Our EOR solution offers a flexible, low-cost, and compliant way to hire talent in over 185 countries without needing to set up a local entity. We handle everything, including hiring, onboarding, payroll, benefits, immigration, and ongoing HR support for your global team. With the right partner, you can expand globally without the expenses of setting up entities. Whether you're looking to grow in new markets or hire international talent, Playroll makes it simple and hassle-free. Contact us today to get started!

What’s the difference between hiring contractors vs. employees globally?

Contractors are self-employed or work through their own company, typically hired for temporary, project-specific work. They are cost-effective for seasonal or specialized tasks and are not on the company’s payroll. Full-time employees, on the other hand, are permanent team members, work regularly for a single employer, and receive a fixed salary, benefits, and tax withholdings. They are ideal for long-term roles that are core to the company’s operations.

When to Hire a Full-Time Employee When to Hire a Contractor
Long-term roles and responsibilities. Seasonal or project-based work.
Employer-set work location required. Flexible work location.
Client-facing work. Specialized or temporary projects.
Supervision is expected. Independent with minimal oversight.

How do I determine the best countries to hire remote talent for my specific business needs?

To determine the best countries for hiring remote talent, consider factors like skill availability, cost efficiency, ease of hiring, legal compliance, and employee satisfaction. Identify countries with a strong talent pool in your industry, compare average salaries and operational costs, and look for streamlined hiring processes. Ensure compliance with local labor laws and consider the quality of life and benefits offered to employees to attract and retain top talent.

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