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What are my options for handling payroll? 

Outside of handling payroll in-house, there are two main options. Nearly everyone outside of the largest organizations with highly-specialized internal payroll departments chooses to outsource payroll using one of these options.

Depending on needs and legal exposures, companies often choose to partner with either an Employer of Record (EOR) or a Professional Employer Organization (PEO).

At PayReel, our clients benefit from what we offer (EOR), and, in addition, we’ll cover what PEOs do to illustrate the difference and help you make the choice that makes the most sense for you.

Employer record - Payreel

The employer of record handles all personnel functions, including the following:

  • Payroll processing and funding
  • Tax deposits and filing
  • Contracts
  • Benefits
  • Employment termination
  • Background checks / drug screenings
  • Worker performance issues
  • Full insurance coverage
  • 401(k) (newly added!)
  • I-9 / E-Verify forms
  • Unemployment insurance
  • Data security

EOR vs. PEO: What is best for my business?

An EOR is a better solution for those who:

Do business in multiple states and would benefit from a partner taking on the state-level responsibilities on the business’s behalf

Want to hire quickly without worrying about changing headcount

Want to hire freelancers or temporary workers for special projects

Want to hand off the legal risks of payroll and compliance

Will benefit from quick onboarding

Document Report - Payreel


A PEO partners with a business to provide HR services and assumes many related responsibilities.

You can think of a PEO arrangement as a way to outsource some of the HR load. Businesses enter into a co-employment situation where the business still holds all related liabilities and responsibilities. The business is also still required to carry its own insurance.

If you work with a PEO and do business in multiple states, you are responsible for registering in each state. PEOs are best for companies that need to up their game in the human resources aspect without handing off legal liabilities.

Why PayReel and why an EOR?

We are in the business of protecting your business.

Because of its complexity and the many government regulations that guide its processes, payroll is one of the riskiest aspects of doing business. It literally requires people to be experts in the highly-specialized process of doing payroll in a timely, secure, and compliant manner.

Since the rules and regulations are so intense, payroll is really easy to mess up, and errors can be more than just inconvenient and embarrassing. They can be incredibly costly due to IRS fines and other costs associated with righting a wrong. Since it’s one of the most complex and riskiest aspects of doing business, outsourcing payroll makes business sense to most organizations. In addition to outsourcing risk, one of the top benefits of outsourcing payroll is that employees get paid accurately and on time. This keeps the company in good standing with the people on the front lines.

Would an EOR help you accomplish your goals? Well, here we are!
Relax. We got it.