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 Type | Hired-by. (in the CM/CM+/COR case refer to as Contracted-by instead) | Managing/Engaging Entity | Bill-To entity OR Billing entity | Payroll-Run-by |
|---|---|---|---|---|
| Global payroll | Customer legal entity | Customer legal entity | Customer legal entity | Remote |
| Direct or HRIS | Customer legal entity | Customer legal entity | na (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 entity | Customer legal entity | Customer legal entity | na (OR via invoicing of the contractor) |
| EOR | Remote | Customer legal entity | Customer legal entity | Remote |
| COR | Remote | Customer legal entity | Customer legal entity | Remote |
| PEO | Customer legal entity | Customer legal entity | Customer legal entity | Remote |
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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