PEO vs. ASO COMPARISON PEO SOLUTION ASO SOLUTION
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