EOR & Payroll
Permanent Establishment (PE) Risk
The tax exposure created when an employee's activity in a country triggers a corporate taxable presence.
Related terms.
Full glossary- AOR (Agent of Record)
- A third-party that contracts and pays independent contractors on your behalf, handling compliance and tax documentation.
- BYOC (Bring Your Own Compliance)
- An EOR / payroll model where the client retains compliance responsibility instead of fully outsourcing it.
- Co-Employment
- A legal arrangement where two entities share employer responsibilities for the same worker. Common with US PEOs.
- Contractor Misclassification
- Treating a worker as a contractor when local law requires employee status — the largest hidden risk in cross-border hiring.
- Entity Setup
- Establishing a legal employer presence (GmbH, BV, SAS, Ltd., etc.) in a country to hire directly instead of via EOR.
- EOR (Employer of Record)
- A third-party that legally employs workers on your behalf in a country where you have no entity.
- Gross-to-Net
- The payroll calculation moving from gross pay through statutory deductions to the employee's net deposit.
- Payroll Consolidation
- Bringing multiple country payrolls onto a single provider, data model and calendar.
