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.