For businesses with established back-office operations seeking targeted support, our Administrative Services Only (ASO) solutions offer a tailored approach. While ASO services are more cost-effective and adaptable than PEO offerings, they come with an increased level of responsibility and potential risk for the employer.

Prime PEO Brokers’ ASO solutions share similarities with PEO services. By entering a contractual agreement, businesses can delegate tasks such as payroll processing, payroll tax management, workers’ compensation calculations (often on a pay-as-you-go basis), workers’ compensation payments, health benefit administration, and more. However, the key distinction between ASO and PEO lies in the ownership of liabilities and policies. To elucidate:

• The State Unemployment ID remains yours.
• Your company retains its workers’ compensation policy.
• Health benefits policies are under your purview.

With our ASO model, while Prime PEO Brokers manages the administrative aspects of these services, the onus and liability for each remain with you, the business owner. If you’re at ease with this responsibility, the ASO model offers the advantage of individual control over each service. This means you can modify or switch providers for a specific service without overhauling everything. Each service’s coverage levels or agreements can be adjusted independently.

However, it’s essential to understand the implications of claims under the ASO model. Whether it’s a workers’ compensation claim, a state unemployment claim, or significant usage of your health insurance policy, these events will directly influence your costs. Without the expansive pool that a PEO provides to mitigate the effects, such claims could lead to steeper price hikes compared to a PEO setup.