Frequently Asked Questions

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Explore our FAQ section for detailed answers to common questions about TEL’s comprehensive HR solutions, including PEO services, benefits, compliance, and more.

  • A PEO (Professional Employer Organization) is an efficient business model that transfers liability and administrative responsibilities from your company to the PEO. By partnering with TEL as your PEO, business owners can concentrate on the revenue-generating facets of their organization, while TEL manages payroll processing, employee benefits, HR, and risk management with ever-evolving governmental regulations.

    In essence, the PEO model allows TEL to serve as a protective umbrella over your business. With TEL as your PEO, we are recognized by the government as the employer of record for your employees, assuming the liabilities and responsibilities of employment under our federal tax ID. This arrangement provides you with robust protection and excellent benefits, enabling you to focus on business growth. All these advantages are offered at a cost-effective rate, delivering significant value for a modest investment.

  • ASO (Administrative Services Only) is a solution for businesses seeking to outsource routine HR tasks while retaining employer responsibilities. TEL’s ASO services handle tasks like payroll processing, risk management, tax administration, employee benefits, and HR support, freeing you to focus on core business activities. Ideal for small and medium-sized businesses (SMBs), ASO offers administrative efficiency without shifting employer liability.

  • TEL understands the unique needs of faith-based organizations. Our full-service ASO model allows these organizations to access comprehensive HR support while maintaining religious freedoms under their federal tax ID. This approach can help faith-based organizations comply with their values regarding hiring and dismissal practices, while potentially offering exemptions from unemployment taxes.

  • When working with a PEO like TEL, you enter a co-employment model where the PEO assumes administrative liabilities, and employees are under the PEO’s federal tax ID. A good PEO handles payroll, taxes, I-9s, W-2s, benefits, and more.

    In contrast, the ASO model provides similar services, but liabilities remain with the client company under its federal ID. It’s important to consult with an Account Manager to determine which model aligns with your short- and long-term goals, as not every organization is suited for a PEO or ASO. Choose the model that best meets your needs before committing.

    Below is a matrix of common questions about PEO and ASO responsibilities:

    QuestionPEO ModelASO Model
    Who is the employer of record?Co-employment with PEO; PEO is the employer of record.Your company remains the employer of record.
    Who is liable for payroll taxes?PEO reports employer & employee tax deposits under its FEIN.ASO manages payroll taxes under your company’s FEIN.
    Which SUTA rate is used?PEO’s State Unemployment Tax Rate applies.Your company’s State Unemployment Tax Rate applies.
    Who manages unemployment claims?Managed by the PEO.Managed by your company or ASO (may incur with additional costs).
    Who handles workers’ compensation?Covered under the PEO’s master policy.Coverage from your own policy or obtained through ASO plan.
    Who handles risk and safety management?Managed by PEO, including claims and safety programs.Managed by ASO or a third-party (may incur with additional costs).
    Who provides employee benefits?Offered through PEO or your company’s own policy.Managed by ASO or arranged by your company.
    Who manages human resources?HR tasks handled by the PEO.HR tasks managed by ASO as part of the service agreement.
    Who manages regulatory compliance?PEO manages regulatory compliance.ASO handles compliance as part of their service agreement.
  • Time Savings

    Partnering with a PEO (Professional Employer Organization), ASO (Administrative Services Organization), or staffing company can save significant time. This time can be redirected towards business growth activities or personal pursuits.

    Cost Efficiency

    A PEO can offer purchasing power that individual businesses may not have. Our PEO, ASO, and Staffing solutions include better unemployment tax management, workers’ compensation coverage, avoidance of unnecessary fines, and improved contract negotiations for employee benefits. These savings can often offset the cost of the services provided.

    Peace of Mind

    Managing legal issues, sourcing candidates, payroll, and benefits can be complex. Our solutions have experts in these areas to handle questions and ensure compliance with regulations, providing peace of mind to business owners.

  • While many companies across the United States offer PEO, ASO, and staffing services, few truly provide comprehensive support. TEL stands out because we prioritize helping organizations grow and reach their goals. If we’re not the right fit, we’ll connect you with trusted local providers to ensure you find the best solution for your needs.

    What makes TEL unique is our service philosophy. Our team is deeply knowledgeable about industry-specific laws and regulations, and we explain these clearly to help you make informed decisions. We provide the facts, suggest the best course of action, and empower you to choose the best path for your business. Unlike many providers that dictate how you should run your business, TEL respects your autonomy, supporting you in operating your way, within legal requirements.