When wanting to expand your business globally, it is important to consider different factors for certain aspects of your development. The payroll process can seem intimidating and a step that certain small businesses may feel uncomfortable with. So hiring an outside payroll service company might ease your worries and remove stress in regards to Human Resources (HR), payroll tax and other business processes.

What is a PEO?

Professional Employer Organisations (PEO) are outsourcing firms that provide services to businesses of varying sizes. Here at Payroll Worldwide, we offer a range of services to support businesses in Latin America with their HR, recruitment, employment contracts and payroll needs. Our in-country experts understand local tax systems amongst Latin American countries and will help companies with useful payroll features, including tax and legal advice, benefits management and staffing queries.

Find more about our services here. If you are considering using a PEO for global expansion, continue reading for helpful tips and issues to consider.

Payroll Taxes

Permanent Establishment (PE) is an important international tax notion, meaning companies can be subject to income tax in a dominion, despite not having a legal organisation there. In regards to HR, businesses should consider this risk as it could lead to serious issues, such as damage to their reputation and an increase in audits from tax authorities.

Businesses should consider hiring a payroll service company to avoid these issues. Using international payroll services means you will have local experts in the countries of your choice, where they will have experts from the region to help with all HR needs. The representative will know all the local tax laws, employee regulations and useful payroll features.


Global expansion is a frequent step for companies wanting to progress and offer their services to a bigger audience. There is so much potential, specifically in Latin American countries, to expand businesses and test different strategies for regions worldwide.

However, for small businesses, this might be a huge and nerve-racking new step. Especially in countries that are unfamiliar. By hiring a PEO, you can test the waters out instead of fully committing to starting a local legal entity. It allows companies to expand, without losing any business or substantial loss of profit. Also, hiring a payroll service eliminates a certain level of risk, as legal protections are in place due to the payroll service providers frequently providing co-employment in the region.


Having to set up a local entity in different countries is a costly process. However, by hiring a payroll service company, small businesses can outsource HR issues and save money in the long run. Their team can focus on different sectors of the business without having to worry about employment or tax issues. If their company is unaware of different countries’ tax systems, without hiring a PEO could mean they would have to train their own staff or hire a team to complete these activities.

Using a payroll provider can save time and money for small businesses. You don’t have to pay full wages for an outside team for staff in relation to HR sectors. You also don’t need to train anyone, wasting unnecessary time as the PEO will already be knowledgeable on these topics. Payroll Worldwide has a fully qualified and trained team in all aspects of HR, employment and tax issues in Latin American Countries. With a history of helping small and medium-sized businesses, we can keep on top of all the issues you don’t want to deal with.

Why HR Compliance is Important?

It is important to remember that HR laws are not universally the same. They contrast and differ depending on the specific country and its politics. When considering expanding globally, countries should consider compliance. Especially in multiple locations.

Companies should contemplate hiring international payroll service providers, as they have dedicated teams who keep up-to-date with compliance laws in foreign districts. Payroll Worldwide is a focused business that fully understands Latin American laws and presents a clear security advantage for potential clients, compared to in-house HR teams who are unfamiliar with how different countries operate.

Payroll Worldwide are a payroll service company that works alongside a range of industries and offers HR services to Latin American countries. Most free payroll services will be unreliable, but our mission is to add value to our clients and facilitate their success through reliable payroll management and leading customer service. If you would like to find out more about our PEO services or book a free consultation, please give us a call on 07469 892524. Alternatively, you can fill out our online form here.