Human Resources Mexico (HRM) vs Runa

If you found yourself comparing Human Resources Mexico (HRM) and Runa, the first thing to understand is that they are not the same type of product.

Runa is a cloud-based payroll and HR software platform for small and medium-sized businesses in Mexico.

It helps Mexican companies run payroll, manage IMSS filings, issue CFDI 4.0 receipts, track vacation, and store employee documents.

Human Resources Mexico (HRM) is a Mexico-only Employer of Record. It becomes the legal employer of your Mexico-based employees, handles every obligation under the Federal Labor Law and IMSS, and provides bilingual HR support for both your company and your employees.

These two products serve different purposes. Understanding which one you actually need is more important than comparing features.

Quick summary

What each product actually is

Human Resources Mexico (HRM)

We are a boutique Employer of Record operating exclusively in Mexico since 2009.

When a foreign company hires someone through HRM, that person is formally employed by HRM under a Federal Labor Law (LFT)-compliant contract.

We are the named employer. IMSS registration is filed under our own Registro Patronal. Biweekly payroll runs in MXN and CFDI 4.0 payroll receipts are issued under our own RFC.

The foreign company has no Mexican legal entity, no SAT registration, and no IMSS employer enrollment. Those obligations belong to HRM.

We hold active REPSE registration, is independently audited for compliance, and provides 100% human HR support through a bilingual team physically based in Mexico.

Runa

Runa is a cloud-based payroll and HR software platform built for small and medium-sized businesses in Mexico. Founded in 2017 by Courtney McColgan (ex-CMO of Cabify) and launched through Y Combinator.

Runa is headquartered in Mexico City.

The platform automates payroll calculations, manages CFDI 4.0 timbrado, integrates with IMSS and SAT systems, handles direct deposit, tracks vacation and attendance, stores employee documents, and provides employee self-service tools.

Runa serves more than 3,500 companies across 30+ industries in Mexico.

Most clients are Mexican small and medium enterprises: manufacturers, food service companies, retail businesses, and software firms with existing Mexican entities who need a better way to run payroll.

The fundamental difference: who is the employer?

This is the question that determines which product you need.

If your company does not have a Mexican legal entity: Runa is not an option. Runa is payroll software. It helps an employer run payroll. But you need to already be an employer in Mexico to use it. Without a registered Mexican entity, you cannot enroll with IMSS, obtain an RFC from SAT, or issue CFDI payroll receipts. Runa cannot create that legal foundation for you.

In this situation, you need an EOR like HRM. Our entity is already registered with SAT and IMSS. HRM becomes the legal employer, and you direct the employee's work.

If your company has a Mexican entity: Runa is a relevant option. Once you have incorporated an S.A. de C.V. or S. de R.L. de C.V., registered with SAT, and enrolled with IMSS, you can use Runa to manage the operational side of payroll: calculations, CFDI stamping, IMSS uploads, employee records, and HR workflows.

In this situation, you may not need an EOR at all. You are the employer. What you need is software to run the payroll function efficiently.

The choice between HRM and Runa is not a feature comparison. It is a structural question: does your company currently have (or plan to set up) a Mexican legal entity? If yes, evaluate Runa and similar payroll platforms. If no, evaluate EOR providers like HRM.

When a foreign company uses Runa

There is one scenario where a foreign company might evaluate Runa: after transitioning from an EOR to their own Mexican entity.

Many companies start employment in Mexico through an EOR. Once their team grows to 10–20+ employees, they incorporate their own Mexican entity to reduce per-employee overhead.

At that point, they need payroll software for the new entity. Runa is a credible option at that scale.

In this transition scenario, Runa and HRM are sequential rather than competing. HRM for the EOR phase. Runa (or a similar platform) for the self-managed entity phase.

Runa's strengths as a payroll platform

For Mexican companies that already have an entity and need to run payroll efficiently, Runa's platform offers:

• Automated payroll calculations: Handles Mexico's complex biweekly payroll math including ISR progressive brackets, subsidio al empleo, and integrated salary (SBC) calculations
  
  

• CFDI 4.0 timbrado: Stamps and files payroll receipts directly with SAT on every payday through the platform
  
  

• IMSS integration: Manages IMSS filings, SUA uploads, and INFONAVIT bimonthly contributions
  
  

• Employee self-service: Employees can access payslips, vacation balances, and HR documents through their own portal
  
  

• Vacation and attendance tracking: Built into the same system as payroll, eliminating the spreadsheet gap
  
  

• Document storage: Employment contracts, performance documents, and HR records centralized in the platform
  
  

• Reporting: Payroll reports, IMSS summaries, and workforce analytics for HR and finance teams
  
  

Runa is used by more than 3,500 Mexican companies, with reviewers on Capterra noting it as a replacement for error-prone Excel-based payroll processes.

What Runa does not provide

Runa is payroll software. It does not:

• Become the legal employer: you must already have your own Mexican entity

• Hold REPSE registration: Runa is not an EOR or specialized service provider under the 2021 outsourcing reform

• Handle IMSS registration from scratch: you need a Registro Patronal already in place

• Draft or execute employment contracts: Runa is an operational platform, not the employer

• Provide HR support to employees as the employer: support for Runa's platform users is product-level support, not employment HR support

• Manage terminations under the LFT: you as the employer handle this; Runa can calculate finiquito amounts but is not responsible for the process

• Serve foreign companies without a Mexican entity: no legal pathway exists for this

What HRM provides that Runa does not

HRM eliminates the need for a Mexican entity entirely.

For foreign companies that want to hire in Mexico without the $10,000–$20,000 setup cost, 8–12 week incorporation timeline, and ongoing compliance overhead, We provide:

• Full legal employment under the LFT: no Mexican entity required on your part

• IMSS registration under our own Registro Patronal

• CFDI 4.0 payroll issued under our own RFC

• Active REPSE registration: verifiable on the STPS public portal

• Independent third-party compliance audit

• Bilingual HR team in Mexico: human support for both client company and employee

• PTU paid by HRM: not billed back to the client

• Termination management under the LFT: We handle severance calculations, finiquito processing, the statutory seniority premium (prima de antigüedad) consisting of 12 days' salary per year of service subject to the applicable statutory salary cap (two times the applicable minimum wage), and IMSS baja. 

• Operational benefits: private medical insurance, gas cards, laptops, travel arrangements, and more, all managed within the employment relationship

Comparing total cost: EOR vs. entity + payroll software

If you are evaluating whether to use HRM (EOR) or set up your own entity and use Runa, the financial comparison looks like this:

HRM (EOR path)

• No setup cost

• No incorporation fees

• Single percentage markup on gross taxable salary, disclosed in full before signing

• No security deposit, no advance funding

• Ongoing compliance managed by HRM

Entity + Runa (direct entity path)

• Incorporation cost: $10,000–$20,000 in legal, notary, and government fees

• Timeline: 8–12 weeks before first payroll

• Runa subscription: SaaS fee per employee per month (pricing is per-employee subscription; contact Runa for current rates)

• Contador (accountant): MXN 3,000–8,000/month for SAT filings, annual ISR reconciliation, and IMSS coordination, required even if you use Runa

• HR staff or outsourced HR: Someone must manage employment contracts, terminations, and compliance decision-making

• Break-even: Generally not cost-effective vs. EOR until you have 10–15+ employees in Mexico with a long-term commitment

For companies still testing Mexico or with a team of 1–10 employees, the HRM EOR model is almost always more cost-effective than incorporating and running the entity yourself.

For companies with 15+ employees, a long-term commitment, and internal operations capacity, entity plus payroll software like Runa becomes the more efficient model.

The right tool for the right stage

Start with the right structure for your stage

If your company does not have a Mexican entity and you need to hire in Mexico compliantly, Human Resources Mexico (HRM) is the correct starting point.

We have operated in Mexico since 2009. We are the legal employer for every person hired on your behalf.

Active REPSE registration. Third-party compliance audit. Dedicated human support for employees. A Mexico-based bilingual HR team that handles every employment obligation and every employee inquiry.

When your team grows to the point where incorporating your own Mexican entity makes sense, we can support that transition.

At that point, a platform like Runa becomes the relevant tool for running payroll through your own entity.

• 17 years of physical presence in Mexico: Our entity, our team, our registrations

• Active REPSE registration: Publicly verifiable on the STPS portal

• Single transparent fee: One percentage on gross taxable salary, all-inclusive, no surprises

• Human support: Every inquiry answered by a bilingual HR professional in Mexico

• Mexico-only focus: One country, every compliance detail handled correctly

Get a custom HRM proposal and see exactly what compliant Mexico employment costs for your specific hire.

Have questions about the difference between EOR and payroll software, or about your Mexico hiring structure? Ask our Mexico EOR Specialist AI Chatbot for immediate answers.

Frequently asked questions

Is Runa an Employer of Record?

No. Runa is a payroll and HR software platform. It helps companies that already have a Mexican legal entity run payroll, manage IMSS filings, and issue CFDI 4.0 receipts.

Runa is not the legal employer, does not hold REPSE registration, and cannot be used by foreign companies without a Mexican entity.

What is the difference between HRM and Runa?

We are an Employer of Record that employs people on behalf of foreign companies under Mexican law. Runa is payroll software that helps employers with existing Mexican entities run payroll operations.

HRM eliminates the need for a Mexican entity. Runa requires one.

Can a foreign company use Runa to hire in Mexico?

Only if the foreign company has already incorporated a Mexican legal entity, registered with SAT, and enrolled with IMSS as an employer.

Without these registrations, there is no legal basis to issue CFDI payroll receipts or register employees with IMSS, which are required to use any payroll platform including Runa.

When should a company switch from HRM to Runa?

When the company decides to incorporate its own Mexican entity.

Most companies use an EOR like HRM for their first 10–15 employees.

When the team size justifies entity setup costs, the company incorporates, then uses payroll software like Runa. The two are sequential, not competing.

How does Runa price its software?

Runa charges a per-employee monthly SaaS subscription fee. Pricing is not published publicly; contact Runa directly for current rates.

The fee covers payroll processing, CFDI timbrado, IMSS integration, and HR features. It does not cover the statutory employer contributions (IMSS, INFONAVIT, aguinaldo, PTU) that the employer must fund separately.

Does HRM offer payroll software for companies with their own Mexican entity?

No. We provide Employer of Record services for foreign companies hiring in Mexico without their own entity. We do not offer a SaaS payroll platform.

If your company has incorporated its own Mexican entity, you would use a platform like Runa for the operational payroll function, alongside an accountant for SAT filings and compliance.