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By Empowering Your Business with HR Plus PEO & ASO Services

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PEO vs ASO Services

Dive into our comprehensive guide to understanding the difference between PEO and ASO services, and discover how each can revolutionize your company’s operations.

ASO's Graph: (with all 7 offerings checked off) ASO's don't offer: 1-EmployeeBenefits, 6-Employee Assistance (EAP), 10-Workers’Compensation But they do offer: 2-Compliance Assistance 3-OnboardingSupport 4-Training& Development 5-Employment Tax Administration 7-HR Support& Consulting 8-PayrollProcessing 9-RiskManagementPEO's Graph: (with all 10 offerings checked off) 1-Employee Benefits 2-Compliance Assistance 3-Onboarding Support 4-Training & Development 5-Employment Tax Administration 6-Employee Assistance (EAP) 7-HR Support & Consulting 8-Payroll Processing 9-Risk Management 10-Workers’ Compensation

What is a PEO?

A Professional Employer Organization (PEO) provides payroll & HR services to small and mid-size businesses—paying wages and taxes under the PEO EIN, offering workers’ comp and risk management services, and providing compliance assistance with employment-related rules and regulations.​​ Learn more about PEO’s…

What is an ASO?

An Administrative Service Organization (ASO) is a service provider offering administrative and HR support to client companies. Unlike a PEO, an ASO does not co-employ the workforce. ASO’s handle payroll taxes under the client’s EIN and do not provide workers’ compensation or health benefit sponsorship. Learn more about ASO’s…

What is a PEO or
Professional Employer Organization?

Professional employer organizations (PEO’s) provide Payroll and HR services to small and mid-size businesses—paying wages and taxes under the PEO’s EIN, offering workers’ comp and risk management services, and providing compliance assistance with employment-related rules and regulations.​

A PEO becomes the “employer of record” for your employees also referred to as “co-employment”. Co-employment is a three-way relationship between You as the client, HR Plus as the PEO, and our now shared employees. The employees of small businesses gain access to big-business employee benefits such as: 401(k)plans; health, dental, life, and other insurance; dependent care; and other benefits they might not typically receive as employees of a small company.​

HR Plus, as the PEO takes over the responsibility for your HR administration and compliance needs but your employees still report directly to you, they’re 100% your work force, we just take care of the behind the scenes issues. With us taking care of the administration side of things, businesses can focus on their core operations while the PEO manages various HR and administrative tasks, ultimately enhancing efficiency and compliance within the organization. Some benefits services provided by a PEO typically include:

  • Employee Benefits Administration:

    Management of employee benefits programs like health insurance, retirement plans, and other perks.

  • Compliance Assistance:

    Ensuring compliance with labor laws, regulations, and reporting requirements at the state and federal levels.

  • Payroll Processing:

    Handling payroll, tax withholdings, and issuing employee paychecks.

  • Workers’ Compensation Management:

    Managing workers’ compensation claims and related administrative tasks.

  • HR Support and Consulting:

    Providing guidance on HR-related issues, employee relations, performance management, and more.

  • Employment Tax Administration:

    Managing payroll taxes, filings, and tax-related compliance.

  • Onboarding Support:

    Assisting with applicant tracking, and employee onboarding processes.

  • Training and Development:

    Offering training programs and development opportunities for employees.

  • Risk Management:

    Assisting in risk assessment, safety programs, and workplace safety compliance.

  • Employee Assistance Programs (EAP’s):

    Providing resources for employees dealing with personal issues or challenges.

You vs PEO. 1 List of Your Employees vs You: Direct Control Over Employees Determine Compensation Performance Assessment Day to Day Employee Management. 2 List of Your Employees vs PEO: Payroll & Benefits Administration HR Services Workers' Comp Compliance Assistance HR Technology

What’s an ASO or
Administrative Services Organization?

An Administrative Services Organization (ASO) is a service provider that offers administrative and HR-related services to client companies, similar to those provided by Professional Employer Organizations (PEOs). However, unlike PEOs, ASOs do not establish a co-employment relationship with the client’s workforce. This means the client company retains full control over hiring, firing, and managing employees on a daily basis. While ASOs do not provide workers’ compensation or sponsor health benefits, they handle payroll and tax filings under the client’s Federal Employer Identification Number (FEIN).

Services typically offered by an ASO include payroll processing, benefits administration, compliance assistance, HR consulting, and onboarding support. Acting as an external support system, ASOs enable businesses to manage various administrative functions more efficiently and effectively. This arrangement allows companies to streamline HR operations, reduce administrative burdens, and ensure compliance with regulations while maintaining direct control over their workforce.

Many businesses find ASOs beneficial because they provide the flexibility to carve out and customize benefit plans to suit their specific needs. By outsourcing specific HR tasks to an ASO, companies can focus on core business activities without getting bogged down by everyday administrative details. This model is particularly attractive to organizations looking to retain control over their employees while benefiting from professional HR support and administrative expertise.

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Get in touch with us today to explore how HR Plus can tailor our services to meet your unique needs and propel your company forward.

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