What is the difference between a PEO and ASO?
Asked by: Destany Runolfsdottir | Last update: February 26, 2025Score: 4.9/5 (10 votes)
What does aso stand for in PEO?
A professional employer organization (PEO) and an administrative services organization (ASO) are their two main options. Both are third parties that help founders, CEOs, CFOs, CHROs, and their teams with essential day-to-day HR tasks and support, benefits administration, payroll, and compliance to varying agrees.
What is the difference between employee leasing company and PEO?
The key difference between employee leasing and co-employment is staffing. An employee leasing agency will provide you with temporary workers, but a PEO doesn't. In a co-employment arrangement, you supply and manage your own workforce, while the PEO helps you handle HR administration.
What is the difference between a PEO and an aeo?
AEOs provide HR services, like payroll and managing workers' compensation claims. PEOs are co-employers that share employer responsibility and liability with their clients.
What are the three types of PEO?
- Co-employers. The idea of giving complete power in the hands of an HR outsource company might not settle with everyone. ...
- Professional Employer Organization. This type of PEO providing HR services does not become the employer of record. ...
- Staffing Companies.
What is the difference between a PEO vs ASO?
What is considered a PEO?
What does PEO mean? PEO means professional employer organization. They serve to help small and midsized businesses manage certain HR responsibilities and risks through co-employment.
What is the difference between a certified PEO and a non certified PEO?
All PEOs must be licensed in every state they operate in and meet each specific state's requirements. When considering a certified PEO vs. a non-certified PEO, the difference is that certified PEOs (CPEOs) are regulated at a federal level and held to the highest standards.
What is an aso vs PEO?
ASO: Administrative Services Organization
are outsourced to a third party, similar to a PEO. However, the primary difference between ASO vs. PEO is that in an ASO model, there is never a "co-employment" arrangement, and the client company always retains administrative employer status.
What does ASO stand for?
ASO stands for administrative services organization. It handles a business's HR needs, payroll, employee benefits administration, and employee training services. When working with an ASO, businesses outsource their HR to a party or partner that can carry out certain services and experiences.
What are the 2 types of AEO?
- Authorised Economic Operator Customs Simplification ( AEOC )
- Authorised Economic Operator Security and Safety ( AEOS )
What is the disadvantage of a PEO?
While PEOs offer numerous benefits, some disadvantages might include the following: Loss of control of essential processes and people. An outside company's influence on your culture.
Who owns the employees in a PEO?
The PEO owns the employees in a joint employment relationship with a client. The workers are then leased to the client, with the latter still retaining significant control over employment decisions despite not being in primary control within the relationship with the PEO.
How do you tell if a company is a PEO?
Check to see if the company is a member of NAPEO, the national trade association of the PEO industry. Use our Find a PEO search tool to find a NAPEO member doing business in your state.
What is an ASO employee?
An Administrative Services Organization (ASO) is a third-party provider that handles administrative functions like payroll, benefits management, and human resources for businesses, without taking on employment risks. Companies use ASOs to streamline operations while retaining control over their employees.
Is a PEO a third party administrator?
Many CLEs outsource some or all of their payroll and related tax duties to a third party payer. A Professional Employer Organization (PEO) is a type of third party payer.
Is a PEO the same as a staffing agency?
While some of these services overlap with some staffing agencies today, the PEO has traditionally offered payroll services, compliance monitoring, insurance, and more. However, they also act as a co-employer and take on the legal responsibilities for a company's employees.
How much does an ASO make?
The estimated total pay for a Aso Specialist is $55,212 per year, with an average salary of $49,240 per year. These numbers represent the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.
How does ASO work?
Elements of ASO include finding the right keywords for your audience, writing the perfect description, and teaming it with strong visuals. Rather than just getting downloads, app creators should focus on bringing in the right types of searchers who are actively looking and most likely to convert into active users.
What does ASO stand for in HR?
The term “ASO,” on the other hand, stands for Administrative Services Organization. The most important difference between an ASO and a PEO is that the service provided through an ASO does not establish a co-employer relationship.
Who does PEO stand for?
PEOs, also known as a professional employment or employer organizations, are sometimes mistaken for other outsourcing service organizations that include similar or related services, such as: Staff leasing company. Employee leasing company. Managed payroll. Human resources outsourcing organization (HRO)
Who benefits from a PEO?
Some companies, especially small businesses, have limited resources to fulfill all the responsibilities of their human resources teams. A professional employer organization, or a PEO, can help companies perform these essential functions and streamline their operations.
What is an ASO company?
What is ASO? App Store Optimization (ASO) is for mobile apps just like search engine optimization is for websites. It is the process of optimizing apps to increase their visibility on major app stores, such as App Store for iOS, Google Play for Android and Windows Store for Windows Phone.
What are the disadvantages of a PEO?
- Costs of benefits can fluctuate.
- Lower quality of HR services.
- Compliance is not guaranteed.
- Employees have limited access to HR.
- Company data is out-of-house, not immediately accessible.
- High expenses of PEO services outweigh value.
Why is PEO so expensive?
PEOs can quickly become expensive because they typically charge a percentage of total payroll and/or a fee per employee per month. As companies grow, they may be able to achieve better savings with a different solution, compared to a PEO.
Why switch to a PEO?
The Benefits of Switching PEOs
Research has found that organizations working with a PEO experience faster growth, lower turnover, and are less likely to go out of business. As time passes, you may find that your needs have changed, and your current PEO may no longer be the best fit for your business.