WHAT IS AN ASO?

What is an ASO?

Human Resources Outsourcing (HRO) has become one of the fastest growing segments of the market. An estimated 50% of large companies outsource all or some of their HR services. Small businesses are now following the lead of larger companies and have quickly recognized that HRO is a cost-effective alternative. Businesses are turning to HRO firms for help in managing payroll, legal compliance, benefits and HR administration, recruiting, staffing and other related services.

Businesses are always looking for ways to reduce cost and improve efficiencies and productivity. By outsourcing certain HR functions, business leaders gain time to play a more strategic role in their organizations. A popular model for handling outsourced HR functions is referred to as an Administrative Services Organization (ASO)

An ASO provides administrative services as they relate to an employer’s responsibilities regarding its employees.

ADAPT Payroll offers Administrative Services to businesses across the United States. ASO services can best be described as a truly outsourced Payroll and HR department for your business that utilizes your company’s tax id numbers, unlike PEO services which utilize ADAPT Payroll’s tax ID numbers.

ADAPT Payroll handles:

Payroll

Taxes

Workers’ Compensation Insurance

Employee benefits management

All aspects of human resources

ADAPT Payroll offers a comprehensive package of services that we customize to fit your company’s unique needs. Additionally, ADAPT itself provides every aspect of the services listed, so whether you require full ASO services or any one service, we are ready to facilitate your needs.

The Difference between an ASO and PEO

The main difference between an ASO and PEO is that there is no joint employment arrangement. An ASO does not become the co-employer of the client company’s employees. With the ASO model, the client company outsources specific HR tasks and retains the liability while the ASO performs the services. While an ASO may handle tax and insurance filings, they are done under the client company’s tax ID, not a shared one.

An ASO does not sponsor employee benefit programs such as health plans but can help the client company find and secure coverage, as well as handling the day-to-day administration.

Companies who wish to retain internal HR staff may favor the ASO model. The ASO works as an extension of the internal department by handling specific HR functions and projects and filling in skills gaps.

Should you use an ASO?

Administrative Services Organizations (ASOs) are America’s business growth accelerators–allowing owners to focus on why they started their business by taking care of the rest.

The facts are simple: businesses that work with ASOs grow faster and are less likely to fail. This is because ASOs tackle the complicated tasks of payroll, compliance, benefits, and other HR functions so that business owners can focus on the ideas that drive growth and profitability.

While these tasks alone may not seem core to revenue generation, studies show that outsourcing these services leads to increased profitability, business growth, and overall employee satisfaction. Small and mid-sized businesses are the engine that power America’s economic growth.

ASOs are their partners in that effort, ensuring they’re able to focus on what they’re best at—creating jobs for American workers, providing the necessary stability to support American families, and creating opportunity in communities across the country.

So yes, the answer is that an ASO can help your company grow and avoid the pitfalls that lead to the failure of a business. If you are interested in more information or would like to see a demo of the ADAPT system, fill out the form below.