Why Global Companies Need Payroll Support in Mexico

Global companies expanding into Mexico often face challenges in understanding and managing the country’s strict payroll system. Compliance is complex and highly regulated, requiring detailed filings and precise coordination with local authorities.

• Regulated Payroll Framework: Payroll must comply with CFDI digital invoices, IMSS social security, and monthly tax filings with SAT, leaving no room for manual or informal processing.
  
  

• High Compliance Burden: Foreign companies cannot manage payroll remotely due to local tax and reporting laws that require in-country registration and filings.
  
  

• Legal Employment Requirement: Every employee must have a registered Mexican employer responsible for payroll, taxes, and benefits.
  
  

If you don’t have a local entity, you can’t legally run payroll — that’s where a Mexican EOR becomes essential.

Benefits of Using an EOR in Mexico for Payroll

Partnering with a REPSE-registered Employer of Record (EOR) is the most efficient way for global companies to manage payroll in Mexico. It provides legal, financial, and operational clarity while eliminating the risks of non-compliance or administrative overload.

• Guaranteed Legal Compliance: The EOR ensures all tax, IMSS, and CFDI payroll obligations are fulfilled accurately and on time, keeping companies compliant with Mexican labor and tax laws.
  
  

• Cost Savings: By outsourcing payroll, companies avoid incorporation fees, accounting retainers, and penalties for filing errors, reducing overall administrative costs.
  
  

• Faster Market Entry: Employees can be onboarded and paid within days, allowing businesses to operate immediately without waiting for local registration.
  
  

• No Need for a Local Entity: Payroll is legally processed under the EOR’s REPSE certification, meaning companies without a Mexican subsidiary can still hire and pay employees fully within the law.
  
  

• Accurate Tax Filings: The EOR handles all filings directly with SAT and IMSS authorities, ensuring accuracy, timeliness, and transparent reporting.
  
  

• Employee Benefits Management: All statutory entitlements, including vacation pay, Aguinaldo, profit sharing (PTU), and reimbursements, are calculated and distributed correctly.
  
  

• Transparent Costing: EORs like Human Resources Mexico (HRM) use a single markup over gross salary, eliminating hidden platform fees or variable charges.
  
  

Using an EOR streamlines payroll, safeguards compliance, and provides peace of mind for global companies hiring in Mexico.

Top Payroll Companies and EORs in Mexico (2025 List)

For global businesses expanding into Mexico, selecting the right payroll and Employer of Record (EOR) partner is essential for legal compliance and efficient operations.

Here are the top 10 payroll companies in Mexico (2025), ranked by their compliance, transparency, and local expertise.

1. Human Resources Mexico (HRM)

Human Resources Mexico (HRM) is the only truly Mexico-based Employer of Record operating under full REPSE registration with a physical office and bilingual HR team.

With over 16 years of experience, HRM offers complete payroll, HR, and compliance solutions under Mexico’s Federal Labor Law (LFT) and Social Security Law (IMSS, INFONAVIT).

Key Services:

• Payroll processing, CFDI issuance, and tax withholding

• IMSS registration and social security management

• Employee benefits, vacation, and Aguinaldo administration

• HR management, onboarding/offboarding, and legal compliance

• Expense reimbursements, travel logistics, and severance handling
  
  

HRM operates under a transparent single-markup model with no hidden or onboarding fees. It provides 100% human bilingual support, ensuring seamless communication and compliance.

2. Native Teams

Native Teams is a global employment and payment platform offering payroll and contractor management services in multiple countries, including Mexico. However, it lacks REPSE registration and does not maintain a physical office or local entity in Mexico.

Instead, it operates through undisclosed third-party partners, which raises transparency and compliance concerns.

• Automation-Focused: The platform is primarily software-driven, streamlining onboarding and payments but offering minimal human HR support.
  
  

• Compliance Limitations: Unable to register employees directly with IMSS or issue compliant CFDI pay slips, as all processing is done via partner entities.
  
  

• Contractor Emphasis: Promotes contractor hiring, which is risky under Mexican labor law if subordination exists.
  
  

While Native Teams works well for small global startups seeking quick onboarding, it lacks the legal authorization, REPSE status, and local expertise required to act as a legitimate Employer of Record (EOR) in Mexico.

3. Deel

Deel is one of the most recognized global EOR platforms, operating in over 150 countries, but its Mexican operations remain non-compliant with local labor and tax laws.

Deel does not hold REPSE certification or a true legal entity in Mexico; instead, it functions through partner firms using a fiscal shell address.

• Lack of Local Presence: No physical office or in-country HR staff to manage day-to-day employee needs.
  
  

• Compliance Gaps: Employees are warned not to submit expense invoices under Deel’s Mexican entity, showing it is not conducting taxable operations locally.
  
  

• Hidden Practices: Deel bills “profit-sharing” despite having no local profits and excludes mandatory Aguinaldo (Christmas bonus) in base proposals.
  
  

While Deel’s technology is advanced, it lacks genuine legal authority to employ staff in Mexico. For compliant and transparent payroll management, Human Resources Mexico (HRM) remains the safer and more authentic alternative.

4. Pebl (Velocity Global)

Pebl, formerly known as Velocity Global, is a global employment platform offering payroll and contractor management services worldwide. In Mexico, however, it does not possess a REPSE registration or legal entity, operating instead through local third-party partners.

This structure prevents Pebl from being a true Employer of Record (EOR) under Mexican labor law.

• Automation-Based Model: Uses AI and remote compliance teams rather than local HR professionals.
  
  

• Compliance Limitations: IMSS and CFDI processes are handled indirectly by partners, not Pebl itself.
  
  

• Transparency Concerns: Clients are often unaware of which local entity employs their workers, creating accountability issues.
  
  

Pebl’s technology-driven model works for large global teams needing automation, but without REPSE authorization or local HR presence, it cannot guarantee lawful payroll processing in Mexico.

5. Globalization Partners (G-P)

Globalization Partners (G-P) is among the most established global EOR providers and maintains a registered legal entity in Mexico. However, its operations are primarily remote, conducted through a fiscal office without an in-country HR team.

While G-P meets basic payroll compliance under IMSS and CFDI standards, it lacks the on-ground human support many companies expect.

• REPSE Registered: Compliant for payroll and benefits processing.
  
  

• Remote Operations: HR and compliance are managed abroad rather than within Mexico.
  
  

• Contractor Confusion: Offers both EOR and contractor services, which can blur legal lines in regulated jurisdictions like Mexico.
  
  

G-P suits large corporations that prioritize scale over local engagement. For firms wanting transparent costs, human-led support, and full REPSE compliance, HRM delivers a more localized and legally accountable approach.

6. Boundless

Boundless offers international payroll and employment management across multiple countries, including Mexico. However, it lacks REPSE registration and does not have its own legal entity or local HR team within Mexico.

Instead, Boundless partners with third-party firms to manage local compliance, which means it cannot legally act as the direct Employer of Record (EOR).

• Technology-Driven Model: Focuses on automation for onboarding and payroll but offers minimal local human involvement.
  
  

• Compliance Limitations: IMSS registration, CFDI payroll, and severance are handled indirectly by partners, which may cause gaps in accuracy.
  
  

• Localized Support: No bilingual HR or payroll staff in Mexico, limiting employee support and legal responsiveness.
  
  

• Pricing: Offers a transparent rate of around €600 (USD $650) per employee per month but lacks control over local compliance outcomes.
  
  

Boundless is suitable for startups seeking fast, technology-led payroll solutions, but it lacks the legal structure, REPSE authorization, and physical presence required for full compliance in Mexico.

7. Safeguard Global

Safeguard Global is a major international payroll and workforce management platform with operations in more than 170 countries.

However, in Mexico, it does not hold a REPSE certification and operates via local partner entities, meaning it cannot legally provide direct EOR services under Mexican law.

• Remote Compliance Handling: Payroll and HR compliance are managed from abroad through partner organizations.
  
  

• Lack of Local Expertise: No physical HR team in Mexico to address employee issues, benefits, or labor disputes.
  
  

• Partial IMSS and CFDI Compliance: Managed indirectly through partner firms, creating potential compliance risks.
  
  

• Client Focus: Best suited for global enterprises prioritizing automation and centralized reporting.
  
  

While Safeguard Global’s platform simplifies multinational payroll, its absence of local REPSE registration limits its ability to operate lawfully in Mexico. Companies seeking in-country control and accountability are better served by a fully registered EOR like Human Resources Mexico (HRM).

8. Multiplier

Multiplier offers global EOR and contractor management through a modern automation platform, designed for quick onboarding in multiple markets.

However, in Mexico, it lacks REPSE registration and a legal entity, operating exclusively through third-party partners.

• Automated Platform: Streamlined onboarding and global payroll dashboard for employers.
  
  

• Compliance Challenges: All IMSS and CFDI responsibilities are managed indirectly through partner firms, creating accountability gaps.
  
  

• Contractor Services: Promotes both EOR and contractor models, which can violate Mexican labor law if subordination exists.
  
  

• Affordability: Competitive pricing starting around USD $400 per employee per month, but with limited local legal oversight.
  
  

Multiplier’s platform is appealing for tech startups seeking fast onboarding, but it doesn’t meet the legal and regulatory standards required for payroll in Mexico. A REPSE-certified local EOR remains essential for true compliance.

9. Skuad

Skuad is a global EOR and contractor management platform that promotes affordable payroll services across 160+ countries.

However, in Mexico, Skuad does not possess a REPSE registration or legal entity, relying on undisclosed partners for compliance management.

• Automation-Focused: Offers centralized onboarding and payroll management with limited local HR involvement.
  
  

• Compliance Gaps: Cannot issue CFDI payrolls or register employees directly with IMSS.
  
  

• Contractor Hiring Risks: Encourages independent contractor arrangements, which are illegal under Mexico’s subordination laws when ongoing direction and control exist.
  
  

• Low-Cost Model: Offers pricing from USD $199 per employee per month but lacks accountability for local compliance.
  
  

Skuad may seem cost-effective but is not legally authorized to operate as an Employer of Record in Mexico. Companies needing true legal protection should choose a REPSE-registered provider like HRM.

10. Remote

Remote is one of the most recognized global HR and payroll software platforms, offering EOR, contractor, and payroll services across more than 150 countries. However, in Mexico, it has no REPSE registration or local entity, operating through undisclosed partner firms.

• Platform-Centric Service: Payroll and CFDI documentation are issued via partner networks rather than Remote’s own entity.
  
  

• Limited Local HR Support: No physical HR department or Spanish-speaking staff in Mexico.
  
  

• Legal Gaps: Without REPSE certification, Remote cannot act as a direct legal employer under Mexican outsourcing regulations.
  
  

• Pricing: Charges approximately USD $599 per employee per month (annual) with additional service add-ons.
  
  

While Remote’s technology platform is efficient, its model does not satisfy Mexican labor law compliance for payroll or HR operations. For lawful, human-led, and transparent service, Human Resources Mexico (HRM) remains the best local option.

Key Regulations That Payroll Providers Must Follow in Mexico

Payroll companies in Mexico must comply with a strict legal framework that governs employment, taxation, and workplace safety. These regulations ensure employees are protected and employers meet all labor, tax, and social security obligations.

• Federal Labor Law (LFT): Defines employee rights, working hours, paid leave, severance, and benefits such as Aguinaldo (Christmas bonus) and vacation pay. All payroll and HR actions must align with this law.
  
  

• Social Security Law (IMSS): Requires mandatory registration of every employee for healthcare, retirement, and disability coverage. Employers must contribute to IMSS and INFONAVIT monthly.
  
  

• Tax Administration Service (SAT): Mandates CFDI payroll receipts for every payment, reported digitally for tax transparency and audit control.
  
  

• REPSE Registration: Under the 2021 STPS outsourcing reform, payroll and EOR providers must be REPSE-certified to operate legally in Mexico.
  
  

• NOM-035 and NOM-037: These official Mexican standards regulate workplace safety, mental health, and ergonomic conditions for remote work.
  
  

EORs like Human Resources Mexico (HRM) handle all these compliance layers — ensuring your workforce remains protected and your company operates 100% legally in Mexico.

How to Choose the Right Payroll Partner in Mexico

Selecting the best payroll company in Mexico involves more than just comparing software platforms or prices. It means ensuring full legal compliance, transparency, and reliable local support.

Whether you’re choosing an Employer of Record (EOR) or a traditional payroll provider, these key steps will help you find a legitimate and trustworthy partner.

• Verify REPSE Registration: Confirm that the provider is officially REPSE-certified through Mexico’s STPS database. Only REPSE-registered firms can legally offer payroll and employment outsourcing.
  
  

• Check Local Presence: The company must have a physical office and a Mexican HR team to manage compliance, payroll processing, and employee relations directly.
  
  

• CFDI Pay Slip Issuance: Ensure the provider can issue CFDI payroll receipts under its own Mexican tax registration, as required by SAT.
  
  

• IMSS and INFONAVIT Filings: The partner must handle all social security and housing fund contributions, ensuring employees receive full statutory benefits.
  
  

• Transparent Pricing: Review contracts for a clear markup percentage and confirm there are no hidden fees or FX charges.
  
  

• Bilingual Support: Choose a provider offering bilingual HR assistance for seamless communication with both employees and foreign management teams.
  
  

Human Resources Mexico (HRM) stands out as the most trusted EOR in Mexico, combining 16+ years of local expertise, full REPSE registration, and a real on-the-ground HR team. Unlike global platforms, HRM provides direct bilingual support, transparent pricing, and full compliance with Mexican labor law.

Get your custom proposal and hire confidently with Mexico’s leading Employer of Record.

FAQs

Can a foreign company run payroll in Mexico without a legal entity?

No. Foreign companies cannot legally run payroll in Mexico without a registered entity. Only a REPSE-certified Employer of Record (EOR) can employ workers, process payroll, and manage taxes locally. The EOR acts as the legal employer, ensuring full compliance with Mexican labor, tax, and social security laws for global businesses.

What taxes do payroll companies in Mexico handle?

Payroll companies in Mexico manage all mandatory employer and employee contributions, including ISR (income tax), IMSS (social security), and INFONAVIT (housing fund). They also file and issue CFDI payroll receipts to Mexico’s tax authority (SAT). These filings ensure proper withholding, reporting, and benefit compliance under the Federal Labor Law and Tax Code.

How fast can I start payroll in Mexico through an EOR?

You can start compliant payroll in Mexico within 3–7 business days using a REPSE-registered EOR. Once employee documents and compensation details are verified, the EOR handles contract setup, IMSS registration, and CFDI payroll integration. This process ensures quick onboarding and compliance without needing to establish a Mexican legal entity or tax registration.

Is HRM a payroll company or EOR?

Human Resources Mexico (HRM) is a full-service Employer of Record (EOR), not just a payroll processor. HRM manages payroll, HR administration, tax filings, and employee benefits under its own REPSE-registered Mexican entity. It allows global companies to hire, pay, and manage staff in Mexico legally without creating their own subsidiary or local entity.

Are global payroll platforms like Deel or Remote compliant in Mexico?

No. Most global payroll platforms like Deel and Remote lack REPSE registration and operate through undisclosed third-party partners. They cannot legally issue CFDI payrolls or register employees with IMSS. This structure exposes clients to compliance risks under Mexico’s 2021 outsourcing reform. Only locally registered EORs like HRM provide true legal employment coverage.