A Professional Employer Organization (PEO) provides a service under which an employer can outsource employee management tasks, such as human resources, employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development. By filing under a joint EIN number, the PEO is able to leverages its buying power via economy of scale. This helps keep costs down with shared employees and generally better rates on insurance lines.
An Administrative Services Organization ASO – Offers cost effective human resources, payroll and benefits administration. The employer can pick and choose from an a la carte menu of available services (recruitment, benefits administration, payroll, etc.). There’s no co-employment relationship in this model, the employer maintains all business liability and receives no group buying power on insurance lines.