Administrative Service Organization (ASO)
An Administrative Service Organization (ASO), provides payroll, employee benefits, human resource advice and workers’ compensation insurance coverage options to businesses on an outsourced basis. While the ASO provides payroll processing and assures timely tax payments for client companies and their employees, client companies retain employer liability since the employees’ wages are still processed through the client company's Federal Employer Identification Number (FEIN). The Client Company remains responsible for compliance issues and unemployment liability with the support of the ASO.
An ASO generally gives companies the greatest flexibility.
- Payroll Processing
- Payroll Administration
- Benefits Administration
- Workers Compensation – Risk Management provided by the Carrier
- Basic human resource support from handbook creation to reward and recognition programs
- Background Checks, New Hire Reporting, HRIS, Expense Reporting, Wage Garnishments, Pay Cards, COBRA, HRA, HSA, FSA, 401K Plans
- Online web payroll reporting with optional employee access, as well as, time upload capabilities
After meeting with a licensed agent and going through the process of analyzing components like your workers’ compensation and employee benefits, the agent will shop for your company to see which solution is the best fit. If you choose to go with an ASO, the ASO can administer and manage your plans. They are not liable to make sure you are compliant with FMLA or COBRA but they do administer your plans. In essence, an ASO is a one stop shop for payroll, benefits, HR solutions, workers' compensation solutions, time tracking systems and other employee related administrative functions.
Want to learn more?
Download our free ebook: A Complete Guide to Working With An ASO