What Is an ASO?
An ASO (Administrative Services Organization) is one of the most common PEO alternatives.
It provides many of the same bundled services as a PEO while taking the stress off you. By outsourcing these necessary (but tedious) tasks, you’ll have more time to focus on running your business.
ASO services can include:
• Human resources administration
• Payroll processing & deductions
• Risk management
• Employee tax preparation & filing
• Quarterly & annual reports
• Unemployment filing
• Regulatory compliance
Peo vs ASO: What’s the Difference?
When you partner with a PEO, the PEO employs your employees and “leases” them back to you. This drastically reduces the amount of paperwork and time required from you, the company owner.
With an ASO, you retain control with Employer of Record status, rather than the co-employment arrangement under a PEO. This means all payroll and tax documents are processed under your Federal Employer ID number (FEIN).
Of course, this also increases the amount of time you’ll spend in the office “feeding” necessary information to the ASO. Even so, it’s much less work than you’d have if you didn’t outsource those administrative services.
An ASO could be the right choice for your company if:
• You have between 40 and 75 employees
• You’re happy with your current workers’ comp and benefits broker
• You already have a low SUTA rate and low employee turnover
• You don’t mind doing some administrative paperwork yourself
• You’re not comfortable with the co-employment concept of a PEO
• You like the ability to select only the options that suit your business needs
• You need reliable guidance on legal matters and compliance
Do any of the above apply to you? An ASO might offer the administrative services you’re looking for.