Convert your Freelancers to PEO Before April 2022

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Convert your Freelancers to PEO Before April 2022

• Convert your Freelancers to PEO Before April 2022
• Contractors and freelancers have become a common
  part of a businesss remote work strategy. And
  while they are useful in their respective style
  of working, this model of consistently delegating
  remote work might actually be harmful for both
  you and the freelancer. The Indian financial
  year is quickly drawing to a close, and we are
  here today to persuade you to convert your
  freelancers to PEO before April 2022.
• Benefits of turning freelancers to PEO for the
  Employer
• The Surety of Compliance
• Maintaining total compliance with the scope and
  model of working is solely your responsibility.
  It is your company that needs to be compliant.
  This includes proper documentation and regulatory
  transparency. However, freelancers arent
  technically your employees and they maintain
  their own ethics, documentation, and code of
  conduct.
• This risk is yours to bear if you choose to trust
  that your freelancers in India are in proper
  local compliance. But with the PEO model of
  remote work, you enjoy total control over
  employee compliance, as your PEO partner in
  India handles it on your behalf with full
  transparency.
• The Reduced Threat of PE (Permanent
  Establishment)
• Technically you cannot hire direct employees in
  India without registering an entity here. The
  Permanent Establishment risk comes into picture
  when a local tax authority (in this case, the
  Indian Tax

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• Authority) decides that your business has a
  stable and operational entity in India and
  therefore you are liable for corporate taxes in
  India.
• If through your freelancers, you are earning
  revenue in India (for example you hire a
  marketing freelancer / contractor in India to
  market your services in India), the tax
  authority here can deem your business to have a
  permanent establishment in India.
• With the PEO model of remote work, you reduce
  this risk considerably.
• Disbursing Employee Benefits
• If your HR policies have been designed to offer
  certain employee benefits like travel
  allowances, insurance coverage etc. you can bring
  your freelancers also into HR compliance by
  turning them into PEO employees.
• With the PEO model, you can work with your PEO
  partner in India to disburse all the employee
  benefits which your company offers as a policy.
• Protecting your Intellectual Property
• Freelancers are not bound by any law to turn down
  work from your competitors. You can tighten the
  screws a little with rigid contracts but theres
  always the risk that upon delivering your work,
  the freelancer goes to work with a rival
  organization.
• This risk of IP vanishes by converting your
  freelancers to PEO because the resources are now
  in your sole employment and they cannot accept
  work simultaneously with a competitor.

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• Benefits of the PEO model for Freelancers /
  Contractors
• Availing Employee Benefits
• As freelancers, resources are always dependent on
  themselves to create ideal working conditions,
  provide for internet and other resources, and
  pay for commuting if they have an office
  environment. As an employee, though, they can
  get these facilities as part of the employee
  benefits, thereby saving costs. They may also
  benefit from insurance coverage and provident
  funds.
• The Surety of Taxation
• Freelancers or contractors are always in a tricky
  spot to show their incomes from the work they
  do. There are no fixed income heads and neither
  is the pay steady. By becoming dedicated
  employees, they can rest assured that another
  organization (the PEO organization, not their
  employer) will handle all the taxation overheads.
• Structured Growth
• Freelancers have to be very enterprising
  individuals in order to keep getting work. They
  have to struggle to get word of mouth by
  referrals etc. They also have to work on several
  threads at once
• All of these pains are gone when the resource
  becomes a PEO employee. This is because theyve
  now stepped into a structured growth model with
  a tangible path to better remuneration and
  challenges.

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• 4. Ease of Securing Loans
• As we discussed before, pay is not steady for a
  freelancer. Were not saying it always declines.
  Instead, it rises and declines depending on the
  continuous work. Well, banks dont look upon such
  shaky income with a favourable eye. This causes
  problems with their rating when the time comes
  to secure a loan.
• By becoming a dedicated employee, your PEO
  partner in India ensures that the resource gets
  an Indian Employment Letter. This boosts their
  chances of securing a loan along with a steady
  salary month on month, year on year.
• Why is now the right time to convert your
  freelancers to PEO?
• The Indian Financial Year as you know runs from
  April to March. If you convert your freelancers
  to PEO model before the close of the current FY
  21-22, your newly converted PEO employees in
  India will begin their next financial years with
  a clean slate. The new working model has
• huge taxation benefits for both you and your
  employees in India.
• You will also rid yourself of certain risks with
  this model. For instance, your organizational
  accounting policies can govern the salary heads
  while disbursing salaries. With the freelancing /
  contracting approach, there was only the one
  pre-decided amount to be paid for the work done
  and delivered.
• Also, with a PEO employee, you can dictate the
  transparency levels. Otherwise, the onus of
  maintaining complete transparency was with the
  freelancer, taking tremendous control out of your
  hands.
• You still have several days before April 2022.
  Now you have the resources to make an informed
  decision so consider converting your freelancers
  to PEO before April 2022 earnestly.
• Your PEO Partner in India

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If you are sold on the idea that you should
rather handle the PEO model of remote work than
freelancing / contracting, the next step would be
to find the right Professional Employer
Organization (PEO) in India. Our strength as a
PEO agency is speedy solutioning with the perfect
local compliance. Given the slight time crunch
till the FY lasts, you need someone who can
quickly deploy the PEO model but with the due
local compliance in India. If you need more
information about our PEO services, or the
employer responsibilities we undertake, reach
out to us and we will revert back in a jiffy.