Last Updated: February 2026
Managing a remote or distributed team brings unique HR challenges: multi-state or international payroll, compliance across jurisdictions, async communication, equipment management, and maintaining culture across time zones. Traditional HR software was built for co-located teams—these platforms are purpose-built for the remote work era.
Compare the best HR software for remote and distributed teams
Compare HR Software →Remote teams face distinct HR challenges:
Starting Price: $49/contractor/month, $599/employee/month (EOR)
Best For: Companies hiring internationally, especially contractor-heavy teams
Deel has become the de facto standard for global hiring. Their Employer of Record (EOR) service lets you hire full-time employees in 150+ countries without setting up local entities. Their contractor management is equally robust, handling payments, compliance, and classification.
Bottom Line: If you're hiring internationally or managing a global contractor workforce, Deel is the market leader. It removes the complexity of global employment and lets you hire talent anywhere in days.
Starting Price: $29/contractor/month, $599/employee/month (EOR)
Best For: Companies prioritizing employee experience and benefits in global hiring
Remote (formerly Remote.com) is Deel's primary competitor but positions itself as more employee-centric. They emphasize fair pay, comprehensive benefits, and employee experience across countries—not just compliance and speed.
Bottom Line: Remote is the choice for companies that want to compete on benefits and employee experience, not just cost arbitrage. If you're building a truly remote-first culture with international employees, Remote's employee-centric approach stands out.
Starting Price: $8/employee/month (HRIS), $35/employee/month (with payroll)
Best For: Tech companies that want HR, IT, and finance unified for global teams
Rippling isn't just for remote teams, but its combination of HR, IT automation, and global payroll makes it incredibly powerful for distributed companies. Onboard a new employee in Portugal and Rippling automatically handles payroll, benefits, laptop provisioning, and app access.
Bottom Line: Rippling is the best choice if you want one platform for everything and your team is tech-savvy. It's especially powerful for U.S.-based companies with remote employees across states, plus some international contractors/employees.
Starting Price: $40/month + $6-12/employee
Best For: U.S.-based remote teams (not international) that prioritize simplicity
Gusto isn't built for international hiring, but if your remote team is U.S.-only (or primarily U.S. with a few contractors abroad), it's the simplest, most affordable option. Multi-state compliance is excellent, and the user experience is unmatched.
Bottom Line: If your remote team is U.S.-based (employees in 5+ states) and you don't need international hiring, Gusto is the best value. It handles multi-state complexity beautifully at a fraction of the cost of global platforms.
Starting Price: $29/contractor/month, $699/employee/month (EOR)
Best For: Remote-first companies (no HQ) that want culture-building tools alongside compliance
Oyster positions itself as "employment infrastructure for the distributed world." Beyond EOR and payroll, they focus on the soft side of remote work: engagement, culture, distributed team management, and equity in compensation.
Bottom Line: Oyster is the choice for companies that are "remote-first by design"—no headquarters, fully distributed culture. The cultural and engagement tools set it apart from pure compliance platforms like Deel.
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View Full Comparison →| Platform | Contractor Price | EOR Price | Countries | Best For | Unique Feature |
|---|---|---|---|---|---|
| Deel | $49/month | $599/month | 150+ | Fast global hiring | Equipment mgmt |
| Remote | $29/month | $599/month | 80+ | Employee experience | Equity management |
| Rippling | Included | $35/month+ | 90+ | All-in-one platform | IT automation |
| Gusto | Included | U.S. only | U.S. (50 states) | U.S. multi-state | Simplicity |
| Oyster | $29/month | $699/month | 180+ | Remote-first culture | Distributed tools |
Indicators traditional HR software won't work for your remote team:
Best for: Short-term projects, specialized skills, testing new markets, cost-conscious early-stage
Risks: Misclassification penalties ($10K-50K+ per person), lack of loyalty/engagement, limited control over work hours/methods
Best for: Long-term roles, core team members, building local presence, employee loyalty
Costs: Higher platform fees ($599/month), benefits expenses, harder to terminate
Many companies use a "trial period" model:
Platforms that make this easy: Deel, Remote, Oyster all support contractor-to-employee conversion
| Country Tier | Examples | Complexity | Recommended Approach |
|---|---|---|---|
| Tier 1 (Easy) | U.S., Canada, UK, Australia | Low | Contractors work; EOR for employees |
| Tier 2 (Moderate) | Germany, France, Spain, Singapore | Medium | EOR required; strong labor protections |
| Tier 3 (Complex) | Brazil, India, China, Argentina | High | EOR essential; local legal guidance needed |
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Compare Global Platforms →Employer of Record (EOR): A third-party company becomes the legal employer in a country, handling all compliance, payroll, and HR admin. You pay them a monthly fee per employee. Local Entity: You register your company in that country, hire directly, handle compliance yourself. Rule of thumb: Use EOR for 1-10 employees in a country; set up entity for 10+ employees to save long-term costs.
Technically yes, but some countries restrict hiring (e.g., China requires local entity for any employees). Most countries allow EOR-based hiring. Platforms like Deel and Remote handle legal setup, so you don't need to research country-by-country. Red flags: Countries with strict data residency laws (China, Russia), complex visa requirements (Switzerland, Japan), or high labor protections (France, Brazil) need extra diligence.
Use platform-provided templates (Deel, Remote, Oyster have country-specific contractor agreements). Key factors: (1) Contractor controls how/when they work, (2) They use their own equipment, (3) They can work for other clients, (4) Fixed project fee vs. hourly wage, (5) No benefits or PTO. When in doubt, consult local employment lawyer or convert to EOR employee—misclassification penalties are severe ($10K-100K+ per person).
No consensus here—two schools of thought: Location-agnostic pay: Pay same salary (e.g., $120K) everywhere—easier to manage, perceived as "fair." Location-based pay: Adjust for cost of living—$120K in SF = $80K in Portugal. Most companies do location-based (it's 2-3x cheaper). Use tools like Remote's Fair Pay Calculator or Oyster's benchmarks. Transparency matters more than approach—don't hide your methodology.
This is complex. Options: (1) Same country, different city: Easy—update address in HRIS. (2) Different state (U.S.): Register in new state, update withholding—takes 2-4 weeks. (3) Different country: Usually requires new contract via EOR in new country—can take 4-8 weeks. Pro tip: Have a relocation policy upfront (90 days notice, approval process, who pays relocation costs). Platforms like Deel and Remote handle country-to-country transfers.
EOR platforms (Deel, Remote, Oyster) partner with local benefits providers in each country—employees get health insurance, pension/retirement, and statutory benefits automatically. Quality varies by country. Tier 1 countries (UK, Germany, Canada) have great benefits packages. Tier 2/3 countries (Philippines, Mexico, Argentina) have more limited options. Budget 20-40% on top of salary for benefits + employer taxes internationally.
Deel and Oyster offer equipment procurement and shipping—you order a laptop, they ship to employee's address globally. Alternative approach: Give employees a stipend ($1,500-2,500) and let them buy locally—faster and easier for them. Track assets in a spreadsheet or use Rippling's device management. For offboarding, either have employee ship back (expensive) or let them keep it (include in final pay documentation).
Contractor: 1-3 days (sign agreement, set up payment). Employee via EOR: 5-14 days (background check, contract signing, local registration). Employee via local entity: 4-12 weeks (entity setup, bank account, local hiring process). Fastest option: Deel or Remote EOR—hire someone in Portugal on Monday, they start the following Monday.
Best for most international teams: Deel. Widest coverage, fastest implementation, transparent pricing. It's the market leader for good reason.
Best for employee experience and benefits: Remote. If you want to compete on benefits quality and fair pay, not just speed and cost.
Best all-in-one for tech companies: Rippling. If you want HR, IT, and finance unified and your team is primarily U.S. + some international, Rippling is unmatched.
Best for U.S. multi-state teams (no international): Gusto. Simplest, most affordable, best UX for domestic remote teams.
Best for remote-first culture: Oyster. If you're building a distributed-by-design company with no headquarters, Oyster's culture tools stand out.
Budget-conscious hybrid approach: Gusto (U.S. employees) + Deel (international contractors). Best value for small remote teams.
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See Full Comparison →About This Guide: We research and compare HR software to help remote and distributed teams make informed decisions. Our recommendations are based on features, pricing, user reviews, and suitability for global hiring needs. We may earn commissions from some providers, but this doesn't influence our editorial independence.