Use Global PEO solutions for engaging freelancers
Freelancers are a growing segment of the world economy: Engaging a freelancer often provides a flexibility to an organization that is highly sought after. Horizons can help freelancers, and the companies that they work for, to ensure that their working arrangements are legally compliant and cost-effective. Horizons achieves this through ‘Global Professional Employer Organization’ (‘Global PEO’) solutions.
How can Horizons support companies to engage freelancers?
Horizons supports international enterprises by providing Global Professional Employer Organization (Global PEO) solutions. Through a Global PEO solution, Horizons becomes the ‘Employer of Record’ for former freelancers, taking on payroll, tax and employer responsibilities. We consider some of the other benefits below.
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What are the risks for companies engaging freelancers?
It is common for ambitious enterprises to engage freelancers to fulfil their business needs. In many cases, this means engaging freelancers based around the world in various international locations. However, this poses a range of risks:
- Employee misclassification risk
- If the tax authorities in a country deem that an individual is not, in fact, a freelancer, but an employee of your company, your company could be liable for payroll back-taxes, penalties and unpaid employee benefits
- Permanent establishment risk
- This is the risk that the freelancer is classified as a ‘dependent agent’ of your company. This can mean that you are liable for corporate income tax in that country, even if you are not officially established there
- Reputational risk
- Engaging freelancers in contravention of employment and tax laws can do serious damage to your international reputation.
What is the Horizons process for managing freelancers?
Our HR cloud solution keeps employee information secure in line with data protection laws and regulations. At the same time, we ensure you have access to all essential employee information and reports as required.