Comparing PEOs (Professional Employment Organization) & ASOs (Payroll Only)
Time Savings | PEO | ASO |
---|---|---|
Process payroll, prints and distributes checks | YES | YES |
Calculates and deposits Federal, FICA, FUTA, SUTA and local taxes | YES | YES |
Helps administer workers’ compensation claims | YES | NO |
Procures and administers benefit plans, including 401(K) | YES | NO |
Employee Benefits | PEO | ASO |
---|---|---|
Administers group health insurance, dental coverage, life insurance | YES | NO |
Provides a 401(K) plan | YES | NO |
Provides other supplemental voluntary insurance products | YES | NO |
Risk Management | PEO | ASO |
---|---|---|
Assumes liability for timely payment of all payroll taxes | YES | NO |
Maintains employee personnel files for improved government compliance | YES | NO |
Provides I-9 and W-4 verification and maintenance under government guidelines | YES | NO |
Improved Cash Flow | PEO | ASO |
---|---|---|
Eliminates penalties associated with late tax payments and non-compliance | YES | NO |
Workers’ Compensation | YES | NO |
Reduces accounting costs | YES | NO |