WHAT IS A PEO, ASO?

NEMR HR realizes that one size does not fit all. NEMR HR offers a PEO (Professional Employer Organization) and ASO (Administrative Services Organization) model as shared HR solutions.  Both platforms are fully customized to your organizations need, a different approach than most industry competitors.

What is a PEO?

Professional employer organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. PEO clients focus on their core competencies to maintain and grow their bottom line.

Businesses today need help managing increasingly complex employee related matters such as health benefits, workers’ compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the PEO client to concentrate on the operational and revenue-producing side of its operations.

A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client’s worksite and by contractually assuming certain employer rights, responsibilities, and risk.

Businesses across America have discovered the incredible value of PEOs because they provide:

  • Relief from the burden of employment administration.
  • A wide range of personnel management solutions through a team of professionals.
  • Improved employment practices, compliance and risk management to reduce liabilities.
  • Access to a comprehensive employee benefits package, allowing clients to be competitive in the labor market.
  • Assistance to improve productivity and profitability.

PEOs can help their client companies manage the growing burden of employment law and regulation.

© NAPEO – National Association of Professional Employer Organizations; republished with permission.

What is an ASO?

An ASO also provides a cost-effective solution to the management of human resources, employee benefits, payroll and workers’ compensation.  Although the ASO functions in a very similar fashion to the PEO, there are a few major differences.  The most notable difference is that within the ASO model, the business owner maintains their status as sole employer of record for both the employees of the organization and the benefit plans within the organization.

To learn more about the differences between the PEO and ASO solution, click here.

Which Solution Is Right For Me?

The choice between PEO and ASO is one that can only be determined through analysis. NEMR HR will conduct due diligence on your organization and then recommend the appropriate solution based on our findings.  If you are ready to find out which solution is right for you, click here to contact us.

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