Hiring and paying people across borders introduces legal, tax, and compliance challenges that most companies are not equipped to handle alone.
Global payroll platforms and Employer of Record (EOR) services allow organisations to legally employ and pay workers in other countries without setting up local entities.
This guide explains how global payroll and EOR services work, when to use them, and compares the leading providers for remote-first companies.
Why global payroll and EOR services matters
Without the right infrastructure, international hiring can lead to:
- Employment law violations
- Tax compliance issues
- Permanent establishment risk
- Misclassification of contractors
- Delayed or incorrect salary payments
- Fines and regulatory penalties
EOR and global payroll platforms solve these problems by acting as the legal employer on your behalf.
What is an Employer of Record (EOR)?
An Employer of Record is a third-party company that:
- Legally employs workers in their local country
- Handles contracts, payroll, and tax withholding
- Manages statutory benefits
- Ensures compliance with local labour laws
Your company manages the worker’s day-to-day activities, while the EOR handles legal employment.
When should companies use an EOR?
Common use cases include:
- Hiring employees in countries where you have no entity
- Testing new markets
- Rapid international expansion
- Reducing legal complexity
- Managing global teams at scale
Best for startups & scaleups
Recommended stack:
- Deel (EOR + contractors)
- Wise or Revolut Business (banking)
- Stripe (revenue payments)
Why this works:
- Fast onboarding
- Broad country coverage
- Simple compliance handling
Best for mid-size and enterprise companies
Recommended stack:
- Remote or Papaya Global (EOR + payroll)
- Business multi-currency account
- Accounting & ERP integration
Best for recruitment agencies
Recommended stack:
- Oyster or Deel (contractor + employee management)
- Payroll platform
- Compliance monitoring
Compliance considerations
Companies using global payroll or EOR services should still monitor:
- Worker classification (employee vs contractor)
- Permanent establishment exposure
- Data protection regulations (GDPR, etc.)
- Local benefit requirements
- Termination rules by country
Typical cost structure
EOR services generally cost:
- £400–£800 per employee per month
Global payroll services typically cost:
- £20–£80 per employee per month
Prices vary significantly by country and provider.
Choosing the right setup
Early-stage companies
- Use EOR platforms to avoid entity setup
- Focus on speed and compliance
Scaling companies
- Combine EOR + payroll
- Transition to local entities over time
Enterprises
- Centralised payroll platform
- Region-specific compliance providers
Related resources
- Payments & Invoicing
- Tax & Legal Compliance
- Money & Banking Abroad
- Visas & Immigration
- Tools for Distributed Teams