|PEO vs. ASO COMPARISON
|Who is the employer of record?
||Co-employment relationship between client and PEO. PEO is employer of record
||Client maintains traditional employer-employee relationship
|Who is liable for payroll taxes?
||Employer and employee taxes reported and deposited under the PEO’s FEIN
||Employer and employee taxes reported and deposited under the Client’s FEIN by ASO
|Which state unemployment tax (SUTA) rate is used?
||PEO's SUTA rate dependent upon state
||Client's SUTA rate
|Who manages unemployment claims?
||PEO manages unemployment claims
||Client or ASO - could be additional cost
|Who is responsible for workers' compensation coverage?
||Coverage provided under PEO’s master policy
||Coverage provided by client's own policy or can be obtained through ASO
|Who is responsible for risk and safety management?
||Claims management and safety programs compliance administered by PEO
||Claims management and safety compliance provided by ASO or W/C carrier - could be additional cost
|Who is responsible for employee benefits?
||Coverage can be offered under PEO master policy or client may choose to use own policy
||Coverage obtained by client or obtained and administered through ASO
|Who is responsible for human resources?
||Human resource responsibilities managed by PEO
||Human resource responsibilities managed by ASO as part of service agreement
|Who is responsible for regulatory compliance?
||PEO manages responsibilities related to regulatory compliance
||Regulatory compliance managed by ASO as part of service agreement