When you decide to expand to a new country, there are inevitably many questions that come with the process. How do you conduct payroll? What legal structure should you use for your business? Do you need a bank account?
You might also ask questions about the partnerships you have to form. Who should you work with as you enter a new international market?
One common question from business leaders and HR managers alike is, “Should I get a PEO in the US?” The American market is one of the toughest to succeed in, so you know you need to make strategic partnerships. How can you tell if a professional employer organization is one?
Any of these signs could mean working with a PEO is the right partnership for you.
You’ve Had Payroll Problems in the Past
If you’ve had issues with payroll in your home country, then it’s probably a wise idea to look for a partner who could assist you in a new country.
A PEO in the US can help you navigate the rules around payroll. Those regulations vary from state to state. If you plan to operate in more than one state, you could end up needing to learn several sets of payroll rules.
Mistakes on payroll also cost your business, so the PEO can keep you on the straight and narrow. You’ll avoid penalties and keep your employees happy.
You Need Access to Benefits Like Pensions
Another good reason to consider working with a PEO in the United States is to offer better benefits to your employees.
Offering 401ks and other pension and investment vehicles can be difficult for international businesses to navigate. You might have found providing the right benefits difficult in your own home country where you’re familiar with the rules.
A PEO may be able to help you offer more to your employees. Some PEOs offer access to pension plans and more, which could help you meet your employees’ expectations.
You Want to Offer Training and Development
Every employer today knows the importance of proper training and development. How can you ensure you’re offering the right opportunities to your American employees?
You could work with a PEO in the US. They can help you assess the training and development opportunities available to your employees. They might even be able to assist you in developing programs for your employees or connect you with local educational opportunities. They may even be able to offer insight on which programs will benefit which employees the most.
You Can’t Keep up with Compliance
Another good reason to engage a PEO in the United States is to make sure you’re staying on top of compliance.
How do you know you need assistance with compliance? If you’re falling behind on it in your home country, it’s a good indication you’ll require a helping hand in any market you choose to expand to.
The rules and laws are almost always changing, especially in a country like the US. There are three separate levels of legislation in the United States, so even if you’re federally compliant, you may not be in line with state or local law.
Working with a PEO can keep you on top of all these changes. The PEO’s expertise can also guide you to the right policy changes for your business.
You Need Access to Infrastructure
Have you started the application process for a US bank account yet? While you don’t have to have one, opening an account could ease payroll and much more.
How about insurance? Almost every state will require you to have some forms of business insurance.
A PEO can assist by offering you access to insurance, banking, and more.
If you see any of these signs in your business, then it’s time to get in touch with a PEO. They can help you make your US expansion a roaring success.