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What are the differences between ASO and PEO?

If you are looking for an alternative to the Professional Employer Organization (PEO) service because you do not think co-employment is the right choice for your company, then our Administrative Services Organization (ASO) is the way to go. The PEO and ASO administrative outsourcing models provide business owners and managers with access to a comprehensive suite of administrative solutions, but under the ASO model there is no co-employment/employee leasing agreement. The three major differences between the two administrative models are:

  • Business owners using the ASO administration model remain the employer of record.
  • Business owners using the ASO administration model lose the benefit of shared liability through employee leasing/co-employment, meaning they maintain 100% liability for their employees.
  • Business owners using the ASO administration model lose the advantage of grouped benefits and insurance plan/packages.

While the ASO offering doesn’t include these three features, it still provides comprehensive relief from the major administrative obligations that take up so much of an employer’s or manager’s time.

Increase total productivity by getting rid of
time-consuming administrative commitments

Small business owners work long hours
Administration requirements reduce productivity
Small business owners work long hours
Administration requirements reduce productivity

Business owners are typically known for their ability to wear many hats. Oftentimes, they are expected to take on multiple jobs and roles, which include: marketing, management, operations, sales, and more. These additional job roles require them to work longer hours, forego vacation time, and typically spend 6-7 days at the office per week. Even though they are being forced to spend more time at the office, many employers find that their time is still not spent productively.

The root cause of the decreased productivity is the employer’s time-consuming obligations toward administration. Excessive administrative red-tape limits the productivity of the hours spent in the office.

With the help of HR, benefits, and payroll experts, employers and managers can prioritize how they spend their time. They can become re-focused on the core of their business, find ways to increase productivity, and develop realistic goals for growth.

Administrative Services Organization (ASO): Employer relief from Human Resources & Administration

Many business owners and managers fail to recognize there are administration assistance services that help companies complete administrative tasks. Human resources administration outsourcing is a viable and, more often than not, cheaper solution to in-house administration. With XcelHR’s ASO administrative outsourcing solution, employers and managers are able to eliminate the major compliance and regulatory burdens associated with:

Administration outsourcing helps
  • Human Resources Administration – hiring, termination, on-boarding, recruiting and day-to-day workforce management issues.
  • Payroll and Tax Administration – wage and hour compliance, paying employees, handling incorrect employee payment, and filing taxes.
  • Employee Benefits Administration – managing benefits product offering and pricing from vendors, distributing information to employees, and all benefits enrollment.
  • Risk Management and Workers’ Compensation  Administration – managing workers’ compensation rates,  filing claims, and managing overall compliance and liability.
  • Affordable Care Act Compliance – Manage ACA regulations and implement changes that protect you from year-to-year  ACA legislation changes. We manage, research, and update employers on all ACA changes.

The XcelHR Value

Most business owners and managers understand there is always the threat of regulatory change that leads to additional administrative work. Administrative outsourcing removes an employer’s need to research, remain up-to-date on, and find solutions to these red-tape obligations. With XcelHR’s Administrative Services Organization (ASO) option, we provide flexible business solutions that cater to employer’s needs… so they can get back to growing their business.

Take advantage of these XcelHR benefits:

  • Administrative Relief: Free up time and resources to spend more on core business activities that help you better meet your business’s changing needs.
  • Consolidate Vendors: Get the most out of your money. Companies more effectively spend money when consolidating multiple functions to a single vendor.
  • Increased Product Offering: Ensure the timeliness and accuracy of payroll, and improve your benefits package offering so you can acquire and retain your employees.
  • Expert Advice: With XcelHR ASO services, you have access to experts to help you with every aspect of HR and administrative management of your business.