A Professional Employer Organization (PEO) is a co-employment relationship where the PEO becomes the employer of record for an organization’s employees (client). PEO’s generally offer clients support with human resources services, employee benefits and payroll.
An Administrative Services Organization (ASO) is not a co-employment relationship however, much like a PEO, it offers administrative HR services, such payroll and tax compliance, and manage benefit and retirement plans.
Both a PEO and ASO enable employers to outsource payroll and HR administration to a third party. When deciding if either one of these relationships is right for your organization, careful consideration should be given to the primary objective and benefit for considering an outsourcing relationship. First, assess your workplace to determine the level of service you need for HR current and future needs, and your HR and risk management tolerances. Whether you are considering a PEO or ASO, make sure the company is capable of meeting your goals.
Review the pros and cons to establishing a PEO or ASO relationship...
