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ASO vs. PEO Comparison - Which one is right for your business?

The Professional Employer Organization (PEO) and Administrative Services Organization (ASO) model both enable employers to cost-effectively outsource the administration of payroll, human resources, employee benefits, and workers' compensation to a third party allowing them to focus on running their business.

Professional Employer Organization (PEO)

The Professional Employer Organization (PEO) concept was started over 20 years ago and is also known as “co-employment” or “employee leasing”. The Professional Employer Organization (PEO) model typically offers the following:

  • Ability to outsource business processes such as payroll and tax compliance, human resources functions, employee benefits and administration, workers' compensation and administration, and retirement services
  • Customized benefits to fit your company, typically through a single carrier which could be an advantage or disadvantage based on the health of your individual group
  • Ability to fall under the PEO's SUTA rate
  • Ability to utilize the PEO's workers' compensation policy

Administrative Services Organization (ASO)

The major distinction between a PEO vs. ASO, under the Administrative Services Organization (ASO) arrangement there is no employment relationship between the ASO and your employees. The ASO model typically 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 SUTA rate
  • Ability to retain your own workers' compensation policy or have the provider quote, implement and manage on your behalf

If you are currently in a Professional Employer Organization (PEO) relationship and would like to learn more about the PEO/ASO solutions provided by Solid Business Solutions, please contact us here or contact one of our representatives at (832) 222-9916.