How multiple entities work on Remote

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.

In this article, we will cover the following:

• Types of entities
• Difference between Hired by and Payroll by
• Multiple entities in one account based on employment type

Types of entities

• Hired by: This refers to the organisation that employs or contracts the hire.
• Managing entity: This represents the customer’s entity which an employee is related to. Managing Entity can be different from the Hired by entity, as this one depends on the type of Hire (eg. in EOR, the Hired by Entity is always a Remote’s Entity).
• Billing entity: This type of entity represents the Customer’s entity where Remote invoices are sent (e.g. Remote fees, salary, benefit costs).
  Note: Billing entity doesn’t apply to employees (hired by your company) being onboarded because we currently do not bill for this.

Difference between Hired by and Payroll by

The Hired by field in Remote refers to the hiring entity that contracts the hire, while the Payroll by field refers to the entity responsible for processing the hire's payroll.

Multiple entities in one account based on employment type