An EOR is much more expensive because they take on all of the liability and compliance on behalf of the company. Company’s use an EOR to hire employees globally where they do not have a local legal entity.
A PEO is a co-employment model and helps the company set up the compliance, tax, payroll, benefits, and HR processes, but tend to operate more as a consultancy. Company’s use a PEO to outsource HR functions where they have their own local legal entity. Most company’s find it too expensive to have a PEO after 100 employees.
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