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Outsourcing Your Human Resource Services: Comparing the ASO and PEO Models

Human Resources
Blue Paper
01/13/2013

As a small business owner, you may be wondering about the difference between a PEO and an ASO. If you are feeling the burden of human resources administration and you are thinking about outsourcing HR, this white paper will outline the two major HR outsourcing organizations: PEO and ASO.

  • PEO - Professional Employer Organization focuses on providing cost effective benefits through combined buying power and spreading the risk across many customers. A PEO handles most of the administration of certain HR operations such as payroll processing, health insurance administration, state unemployment insurance, and worker's compensation.
  • ASO - Administrative Services Organization offers cost effective human resources, payroll and benefits administration. With the ASO model, a business owner outsources specific HR-related tasks and retains the liability while the ASO performs the services.

In this whitepaper, you will learn the distinct differences between the ASO model and the PEO model and compare them side by side. We will provide you with the right questions to ask when considering what model to choose for your HR efforts revolving around your company, customers, and competition.

This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
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