Employer of Record vs. PEO

A PEO enters a co-employment relationship: you remain an employer of record alongside the PEO, and you must have your own legal entity and registrations in every state where you employ people.

An EOR is the sole legal employer. You do not need an entity in the worker's state, and the employment liability does not stay split between two parties.

Entity footprint: PEO requires one; EOR does not.

Liability: PEO shares it; EOR assumes it.

Scope: PEOs typically want your whole workforce; EORs are routinely used for a defined population such as contingent or project labor.

If you want to outsource HR infrastructure for your permanent staff in states where you already operate, a PEO is the natural fit.

If you need to engage people quickly across many states, for variable durations, without standing up entities, an EOR is the correct instrument.