PEO vs ASO - Major differences.
What are the differences between Payroll USA, Inc. as a PEO and Payroll USA II, Inc. as an ASO?
PEO is an acronym for "Professional Employer Organization" and ASO is an acronym for "Administrative Service Organization".
PEO Services and Employee Leasing Basics
- Payroll USA as a Professional Employer Organization (PEO) contractually allocate and share traditional employer responsibilities and liabilities. Payroll USA, Inc. assumes responsibility and liability for the "business of employment," which includes risk management, human resources, improved labor compliance, payroll and employment taxes, and benefits.
- Payroll USA, Inc. as a PEO acts as a co-employer. Payroll USA, Inc. undertakes certain employer obligations, and for many purposes is the employer of your worksite employees.
- Payroll USA, Inc. as employer, is responsible for the payment of wages and employment taxes. All payroll taxes are filed under Payroll USA, Inc's federal employer identification number.
- All wages are paid through Payroll USA, Inc's bank account.
- We secure worker's compensation coverage as the employer of your worksite employees. Payroll USA, Inc. manages all workmen's comp claims. You may choose to retain your own workers' compensation policy, we can take over the administration as a "Limited PEO" or also referred as a PEO with "Carve-Outs".
- Payroll USA, Inc is the employer for state unemployment tax purposes in most states.
- Payroll USA, Inc. 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
- Payroll USA II, Inc. as an Administrative Service Organization (ASO) through a Client Service Agreement, is your payroll processing agent.
- The major distinction between a PEO vs ASO, under an ASO arrangement there is no employment relationship between Payroll USA II, Inc. and your employees.
- Payroll USA II, Inc. 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.
- Payroll USA II, Inc. provides various services " a la carte".
Facts: Payroll USA II, Inc. is not the "Employer of Record". We are your payroll processing company. This is the "traditional method" of processing payroll.
Call Payroll USA (941 756-1700) for a Payroll Quote. We offer 5% - 25% discount on your worker's compensation rate depending on your claim history.
Outsourcing payroll responsibilities is a common practice. If you have 3 or 1000 employees, we can help you reduce your cost of doing payroll. Give us a call or email for a comparative cost analysis at no charge or obligation.