How multiple entities work on Remote

Article author
Nneka
  • Updated

We've made it possible to manage your global workforce across multiple legal entities for one company in a single Remote account, eliminating fragmentation, simplifying processes and reducing costs.

A legal entity is an operating unit of your company with its own policies, payroll, and tax duties. When you create a company account on Remote, we also create the default legal entity for your company. You can decide to add more legal entities to cover hiring and billing purposes.

What you can configure

When setting up employees and contractors in Remote, you can select:

Managing entity This represents your company's legal entity that the employee or contractor is related to for organizational purposes. This is typically the entity they report to within your company structure.

Billing entity This is your company's legal entity where Remote invoices are sent (including Remote fees, salary, and benefit costs).

Note: Billing entity doesn't apply to employees hired directly by your company and managed through Remote Payroll, as we currently do not bill for this service.

How it works across employment types

The table below shows which entities are involved for each type of hire. Remote automatically determines the "Hired by" and "Payroll run by" entities based on the employment type you choose.

Employment TypeHired-by. (in the CM/CM+/COR case refer to as Contracted-by instead)Managing/Engaging EntityBill-To entity OR Billing entityPayroll-Run-by
Global payrollCustomer legal entityCustomer legal entityCustomer legal entityRemote
Direct or HRISCustomer legal entityCustomer legal entityna (no billing in the per EE sense; customer will pay a monthly subscrip fee for all EE to us)na (OR any of customer’s own; Remote doesn’t run their direct EE’s payroll)
CM/CM+Customer legal entityCustomer legal entityCustomer legal entityna (OR via invoicing of the contractor)
EORRemoteCustomer legal entityCustomer legal entityRemote
CORRemoteCustomer legal entityCustomer legal entityRemote
PEOCustomer legal entityCustomer legal entityCustomer legal entityRemote

Understanding the entity types

  • Hired by: The legal entity that employs or contracts the hire (automatically determined by Remote based on employment type)
  • Managing entity: Your company's entity that the hire is organizationally related to (you select this)
  • Billing entity: Your company's entity that receives invoices from Remote (you select this)
  • Payroll run by: The entity responsible for processing payroll (automatically determined by Remote based on employment type)

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