The cost of personnel has always been front and center for companies. It's not a surprise that exploring the services of a PEO is appealing to smaller companies. It helps to consolidate HR and Payroll functions because it can be risky to hire a full time team, not knowing for sure if they have the current market demanding expertise to keep the company safe and in compliance.
Some PEOs are even offering non-US services for small companies wanting to expand their business beyond the US border. When you face this choice, you will need to consider if your company culture will demand the employee be paid in local currency overseas (i.e., local payroll through the local entity or PEO) or allow the employee to stay on home country payroll that may require the company to setup a shadow payroll process in the local country (i.e., also done through the local entity payroll or PEO).
Because of high cost in relocation assistance programs, many companies cannot offer extended services such as tax preparation assistance with a preferred tax vendor or even a tax call with a tax professional who can guide the relocating employee at least through the first year of assignment. Consider offering a tax call so that the employee can feel more at ease as they get exposure to a new tax system in the host location and better understand what changes will take place with their home country reporting.
http://www.utahbusiness.com/small-mid-size-businesses-join-peo/
