Most businesses today utilize some form of HR outsourcing. An Administrative Services Organization (ASO) provides a combination of several business processes outsourced to a single provider. Typical business processes outsourced in an ASO arrangement include payroll processing, Human Resources, employee benefits administration and retirement plan services.
A similar arrangement to the ASO model is the Professional Employer Organization or (PEO) arrangement. A PEO offers a co-employment arrangement in which they manage your business processes including payroll and tax compliance, Human Resources compliance, risk and safety management, and employee benefits and administration.
The major distinction between a PEO vs. ASO arrangement is that no employment relationship between the ASO and your employees exists. The ASO model offers the following:
- Ability to outsource business processes such as payroll and tax compliance, human resources functions, employee benefits administration, workers’ compensation administration, and retirement services
- Ability to retain your own employee benefits or have the provider quote, implement and manage benefits on your behalf
- Ability to retain your own workers’ compensation policy or have the provider quote, implement and manage on your behalf