Payroll on your entity
Payroll calendar, calculation, withholding, remittance, payslips and year-end obligations run on your Mexican entity.
PEO and administration
PEO in Mexico means someone runs employment administration with you: payroll, IMSS, INFONAVIT, benefits, HR records and reporting. It assumes you already have a Mexican employer. If you have no entity, what you actually need is Employer of Record. If the work is a defined outcome delivered by supervised personnel, it is specialized services or an SOW. We review the work, the supervision and the employing entity, then implement the structure that is lawful and cheapest to operate.
Staffing in Mexico, a Gracemark Global Group company.
You get a written structure recommendation, the administration scope and a per-employee price.
01The situation
PEO is a North American term that does not map cleanly onto Mexican employment law. Companies arrive asking for a PEO and, once the facts are on the table, need one of three things: administration on their own entity, employment through ours, or a supervised service delivered against a scope.
Getting this wrong is expensive in the direction that matters. A structure that misstates who employs, who supervises and what is being bought is the exposure that Mexican labor, tax and subcontracting requirements are designed to catch.
We are a Mexican operating company with local recruiting, employment and payroll capability, and we hold REPSE registration for applicable specialized services. That means we can implement whichever of the three is correct, rather than selling you the one we happen to have.
PEO arrangement
An arrangement where employment administration, payroll, social security, benefits and HR records is run by a specialist provider while the client's own legal entity remains the employer of record.
Tell us the situation in one line. A Mexico specialist comes back with the route we recommend and why.
Get My Mexico Employment Structure02What we do for you
One accountable relationship from workforce design through ongoing delivery.
Payroll calendar, calculation, withholding, remittance, payslips and year-end obligations run on your Mexican entity.
Enrolments, movements, contribution calculation and filings kept current as your headcount changes.
Statutory minimums plus the market benefits your roles need, administered rather than merely promised.
Contracts, personnel files, working-time records and the documentation an audit or an internal review will ask for.
Headcount, cost, accruals and payroll reporting through the technology layer used across our delivery, in a form Finance can reconcile.
A written recommendation on whether administration, EOR or a supervised service is the correct route for each population of workers.
Send us the roles, the headcount or the question. A Mexico specialist comes back with the recommended model, the locations and what it costs.
Get My Mexico Employment Structure03Choose with confidence
We are the only partner that can run every one of these routes for you, so the recommendation is the right one, not the only one we sell.
| Administration (PEO style) | Employer of Record | Specialized services / SOW | |
|---|---|---|---|
| You need a Mexican entity | Yes | No | No |
| Formal employer | Your entity | Our Mexican entity | Our Mexican entity |
| Who directs the work | You | You | We supervise to a defined scope |
| What you buy | Administration per employee | Employment per employee | A delivered outcome |
| Speed to first hire | As fast as your entity allows | Weeks | Weeks |
| Invoicing | USD invoice, MXN payroll | USD invoice, MXN payroll | USD invoice against scope |
| Best at | You already employ locally and want it run properly | You have no entity and need people now | The work is a scope, not a set of individual hires |
Not sure which row is yours? Give us the roles and the timeline and we will tell you, with the cost of each option.
Tell Us Which Model FitsGet the recommendation
Describe the roles, whether you have a Mexican entity, who supervises the work and where it happens. You receive a written recommendation on the correct structure, the administration scope and a priced per-employee model in USD.
Answers
The questions buyers ask us before they commit. If yours is not here, send it and a Mexico specialist answers it directly.
Ask a Mexico SpecialistBuyers use PEO and EOR interchangeably, but they describe different relationships. A PEO arrangement assumes you already have a legal employer in the country and want the administration handled with you. An EOR arrangement means the local company is the formal employer because you have no entity. In Mexico the correct structure is decided by the work, who supervises it, the employing entity and applicable specialized-services requirements, not by the label on the proposal.
If you already have a Mexican entity and want payroll, benefits, IMSS and HR administration run properly, the PEO style arrangement is administration on your entity. If you have no Mexican entity and need people employed now, that is EOR. If the work is a defined outcome delivered by our supervised personnel, that is specialized services or an SOW. We review the facts and recommend one.
Yes. Transitioning an existing payroll and workforce onto administered payroll is standard work: employee data, contracts, IMSS and INFONAVIT records, benefit continuity, payroll calendar and reporting, with continuity of service and seniority preserved.
Administration is priced per employee per month, separately from the statutory cost that Mexican law imposes on the employer. You receive one USD invoice with exchange-rate protection while payroll runs in pesos.
No. You keep day to day direction, performance management and team decisions. The administration, compliance and reporting sit with us, with visibility into headcount, cost and payroll through the technology layer used across our delivery.
Send the roles, the headcount, the scope or just the question you cannot get a straight answer to. You get the route that actually fits, what it costs fully loaded and what happens first, in writing, from the team that would run it.
Prefer to see a recommendation first? Build your plan in 2 minutes.
You get a written structure recommendation, the administration scope and a per-employee price.