PEO vs ASO

PEO Services and Employee Leasing Basics

  • A Professional Employer Organization (PEO) contractually allocate and share traditional employer responsibilities and liabilities. A PEO assumes responsibility and liability for the "business of employment," which includes risk management, human resources, improved labor compliance, payroll and employment taxes, and benefits.
  • A PEO acts as a co-employer. A PEO. undertakes certain employer obligations, and for many purposes is the employer of your worksite employees.
  • A PEO. as an employer, is responsible for the payment of wages and employment taxes. All payroll taxes are filed under the PEO''s federal employer identification number.
  • All wages are paid through the PEO's bank account.
  • A PEO secures worker's compensation coverage as the employer of your worksite employees. A PEO manages all workmen's comp claims. You may choose to retain your own workers' compensation policy, and a PEO can take over the administration as a "Limited PEO" or also referred as a PEO with "Carve-Outs".
  • A PEO is the employer for state unemployment tax purposes in most states.
  • A PEO is subject to compliance with state and Federal employment discrimination laws as well as hour laws.
  • As client you retain the responsibility for the management of employee production, business operations, marketing, sales and service. You have control over all business operations and the work that your employees do, you run the show.

ASO Services and Payroll Processing Basics
An ASO is, as an Administrative Service Organization (ASO) through a Client Service Agreement, is performing as your payroll processing agent.

  • The major distinction between a PEO vs ASO, under an ASO arrangement there is no employment relationship between an ASO and your employees.
  • AN ASO is not the employer consequently all payroll taxes are filed under your federal employer identification number.
  • All wages are paid through your bank account.
  • Worker's compensation coverage is provided under your policy.
  • You are subject to compliance with state and federal employment discrimination laws as well as hour laws.
  • An ASO. provides various services " a la carte".

Facts: An ASO. is not the "Employer of Record". We are your payroll processing company. This is the "traditional method" of processing payroll.

For a payroll quote link to Payroll Service quote at Payroll Marketplace.

Outsourcing payroll responsibilities is a common practice. If you have 3 or 1000 employees, PEOs can help you reduce your cost of doing payroll.

 

Contact us at 1-866-752-3901 for more information or receive a Free Payroll Quote today.