Methodology
This page explains how the Global Hiring / Payroll / Contractor Cost Estimator builds monthly and annual cost ranges, and how it ranks Deel, Remote, Oyster HR, and Gusto. Formulas are implemented in open source code.
Core monthly cost model
For each provider, we estimate a monthly total as the sum of four components:
- EOR / global employees: per-employee monthly anchor × international EOR headcount × country-band multiplier × salary stress multiplier
- Contractors: per-contractor monthly anchor × contractor headcount (only when contractor payments are selected)
- Domestic payroll (US): provider-specific base + per-person math when US payroll is selected and the provider models it
- Modeled add-ons: simple allowances for benefits administration, equity tooling, immigration support, compliance workflows, and onboarding intensity
Country-band multiplier
Hiring across more countries tends to increase operational complexity. We apply a small multiplier to the EOR component only: 1.00 (1 country) → 1.05 (2–5) → 1.12 (6–10) → 1.20 (11+).
Salary stress multiplier
EOR programs often vary with compensation bands. We apply a mild upscale for higher average salaries: 1 + clamp((avgSalary − 80,000) / 500,000, 0, 0.15).
Gusto tier selection
Gusto is modeled with Simple / Plus / Premium anchors. We pick a tier heuristically from domestic headcount, whether you want a full HR suite, and whether benefits administration is selected. Contractor headcount can increase billed people when contractor payments are enabled.
What we intentionally exclude
Employer payroll taxes, benefits premiums, country-specific surcharges, equity tax withholding, legal fees, and one-time implementation fees are not modeled. Those line items often dominate “true” employer cost — this tool focuses on software/platform fee anchors for comparison.
Ranges: conservative, base, and upside
We separate core platform fees (EOR + contractors + domestic payroll) from modeled add-ons, then scale them differently:
- Conservative: core × 0.88, add-ons × 0.85
- Base: unscaled totals from the formulas above
- Upside: core × 1.15, add-ons × 1.22
Provider scoring & recommendations
Each provider has editorial scores (1–10) across eight dimensions: global EOR coverage, contractor management, payroll accuracy, compliance depth, benefits administration, onboarding experience, platform UX, and value for money.
The recommendation engine combines these with your answers:
- Dimensions are weighted higher when they match your selected hiring needs (e.g., EOR selected increases global/compliance weight)
- Your stated main priority applies an additional boost (cost, coverage, compliance, US payroll, contractors, employee experience)
- Cost fit compares modeled monthly totals to your current payroll/HR software spend input
- Provider-specific nudges reflect documented positioning (e.g., Gusto for US-first payroll simplicity)
Important disclaimers
- Pricing anchors are approximate and change frequently — always verify live quotes.
- We do not scrape or call live pricing APIs.
- This is not tax, legal, or immigration advice.
- Scores are editorial assessments, not objective measurements.