Solution | ASO | PEO |
---|---|---|
Co-Employment Model | No | Yes |
Master Health Insurance Plan Access | No | Yes |
Voluntary Benefit Plan Access | Yes | Yes |
Workers Compensation Insurance Master Plan Access | Possibly | Yes |
Human Resources and Compliance Navigation | Yes | Yes |
Retirement Plan Access | Yes | Yes |
Payroll and HRIS Tools | Yes | Yes |
The main difference between an Administrative Services Offering and Professional Employer Services offering is that a PEO utilizes a Co-Employment model and an ASO solution does not.
The Co-Employment model is what allows the PEO to sponsor certain benefits like Health Insurance Solutions and Workers Comp Insurance solutions. In an ASO model the client is responsible for sponsoring their own Health Insurance solutions and taking on the fiduciary responsibilities for those programs.
Companies often transition to an ASO model from a PEO model once they have a larger employee count and can have access to more Health Insurance plan options. This can allow for creativity in benefit plan designs while still having access to the advantages that come with HR Outsourcing.