Hiring Employees Globally

Contractors
A contractor can be hired abroad by asking the contractor to fill out a W-8 BEN. This is the only form that is necessary when it comes time to file taxes. Contractors can be paid a flat or hourly rate, and are not guaranteed ongoing work. Financially this is an inexpensive and affordable option for an employer. However it may not be the best route if a company is looking for a committed and reliable full time staff.

Both EORs and PEOs are aware of the global landscape when it comes to international employment laws, tax reporting cadences and requirements, benefits and insurance packages, and cultural holidays.

EORs (Employer of Record) are built for companies that want to be able to offer salaries and benefits to employees in new geographic locations. EORs will work with companies that have as few as 1 employee. The company contractually remains the sole employer of the employee, but the EOR provides the insurance and other benefits. 

PEO (Professional Employers Organization) Think of a PEO as an outsourced HR service provider: they handle onboarding and payroll. Employers are still responsible for health, disability, and workers comp insurance.
PEOs are usually cheaper the EORs, but the only way to use a PEO to hire foreign talent is to first establish a new business entity in the foreign state/country, which is expensive.
PEOs are commonly used when a company needs to quickly onboard a new staff where they have made a new entity. The price for a PEO depends on the number of employees they will manage, and PEOs will not agree to manage less than 5 employees.
In this arrangement, PEOs and employers contractually co-own the status of employer.