What is an Employer of Record (EOR)? An Employer of Record (EOR) is a third-party entity that hires employees on behalf of your business, managing all employment responsibilities while you maintain day-to-day oversight. In Colombia, this means you can operate without setting up a legal entity and avoid administrative burdens related to employment.
What is a Professional Employer Organization (PEO)? A PEO, like an EOR, provides support for HR functions, but in this arrangement, your business remains the official employer, while the PEO handles specific HR responsibilities. This arrangement can be advantageous if you already have a presence in Colombia but need extra support in managing employee administration.
1. Streamlined Compliance Management Colombia has specific labor laws governing contracts, benefits, and tax withholdings that can be challenging to manage. An EOR or PEO partner helps ensure that you meet these compliance standards, so your business avoids fines or legal issues.
2. Efficient Payroll Processing and Tax Compliance Tax regulations in Colombia require accurate, timely payroll reporting and compliance with local tax codes. An EOR or PEO manages:
3. Employee Benefits and Local Labor Standards Staying competitive in Colombia’s job market means offering benefits aligned with local standards. An EOR or PEO provides insights into employee expectations and legally mandated benefits.
4. Flexible Workforce Expansion Using an EOR or PEO allows you to hire locally without needing to establish a legal entity, enabling rapid expansion and scaling based on project needs. This flexibility makes it easier to test new markets or adjust to changing demands.
When considering an EOR or PEO for compliance and HR in Colombia, focus on the following aspects:
At Ongresso, we specialize in helping businesses navigate HR and compliance in Latin America. With our EOR and PEO solutions, your business can focus on growth while we handle the complexities of employment and regulatory adherence.
By partnering with Ongresso, your company can confidently enter and operate in Colombia, knowing that compliance and HR tasks are fully managed. Contact us today to learn more about how our EOR and PEO services can support your success in Colombia.