PEO vs. ASO

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

Comprehensive benefits previously unavailable;
Improved employer/employee communications;
Payroll that is on-time and accurate;
Professional assistance with employment-related problems;
Professional orientation;
Statuary protection;
Access to current information on labor regulations and workers' rights;
Improved worksite security;
Efficient and responsive claims processing;
Portable benefits (employees can move from one PEO client to another without loss of eligibility for benefits).