An administrative services organization (ASO) is an organization that provides outsourced solutions to meet the administrative and HR needs of the client, with the client retaining all employment-related risks and liabilities.[1] The term ASO was established by the PEO industry in the late 1990s in order to distinguish between selective administrative support and full-scale PEO services.[2] The principal difference between the two types of service is that, in an ASO arrangement, the employer remains the employer of record for tax purposes.[3] Ultimately, with this structure, tax and insurance filings are done through the administrative firm, but under the client company's employer identification number. All W-2 and workers' compensation policies remain the responsibility of the employer and not the administrative firm.[4]
Some of the more common administrative services offered are payroll processing, payroll administration, benefits administration, and corporate benefits.
Payroll services include- W-2 processing, tax filing services, direct deposit, wage garnishment, new hire reporting, standard & custom reports, HRIS, expense reporting, employee time & attendance, paycards, pay as you go workers comp, 401(k) administration, & unemployment Cost Control.
Benefits administration includes- managing COBRA, HRA/ HSAs, FSAs and transit pre-tax plans, bill payment/ premium reconciliation, & benefits enrollment.
Corporate benefits include- organizing/ negotiating health insurance, group dental, STD, LTD, life, etc. [citation needed]
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^"What is an Administrative Services Organization (AS)? | XcelHR".
^"Archived copy". Archived from the original on 2021-10-30. Retrieved 2010-07-20.{{cite web}}: CS1 maint: archived copy as title (link)
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