Pros and Cons of Using an Administrative Services Organization
There’s a lot that goes into keeping a business running smoothly at any level. In today’s crazy economy and hiring environment, it’s not hard to feel like you’ve got too much on your plate to handle. That goes for a variety of jobs, including things like HR, payroll, and general administrative services. That’s where something like an administrative services organization comes in.
What Is an ASO?
An administrative services organization, or ASO, handles a lot of the administrative and payroll tasks that a business must have in order to function. ASOs tackle things like employee benefits, worker’s comp claims, payroll, payroll tax compliance, and unemployment insurance claims. That’s a lot of stuff off your plate now, isn’t it?
Pros
Some of the benefits of using an ASO should be pretty immediately obvious. For starters, you won’t have to worry about making sure all those tasks are being taken care of. You can leave it all to the ASO. This model of services allows you to pay for what you need, which can help you save some money. While some HR responsibilities are handled by the ASO, you still are the sole employer, unlike with a PEO, allowing you to retain functional control. You’ll still enjoy back office and administrative support without having to have it all done in-house. Perhaps the greatest benefit is that you’ll be able to take advantage of experts in the areas of tax compliance and some of the legalities of HR and administration. No novices here.
Cons
Like anything in life, ASOs are not without their drawbacks. ASOs aren’t going to sponsor benefits coverage, so you’re a little more on your own for that. That said, once you have benefits figured out, an ASO can help with benefits administration. Similarly, ASOs aren’t going to provide worker’s comp coverage, though they can help you out with claims. Finally, because an ASO doesn’t co-employ your employees, it doesn’t assume any responsibility or risk for anything they do. That one is entirely on you and your business.
You have a lot on your plate, just like everyone else at your business. While some jobs and tasks are simply better handled internally, others can be outsourced more easily than you might think. Don’t get bogged down by administrative paperwork. Let us handle it so you can get back to actually running your business.
ASO, PEO, which should you use? Compare the two here: PEO or ASO?
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