Administrative Services Outsourcing (ASO)
Definition
When an employer outsources specific HR administrative tasks to an external provider.
What is ASO?
With ASO, a business partners with a third party to perform certain HR administrative functions such as payroll processing, benefits administration, and recordkeeping.
Why is ASO Important for Employers?
Small businesses are often focused on growth and limited on time. By partnering with an ASO, they can:
- Streamline HR administrative workload
- Reduce compliance risk
- Improve accuracy and efficiency
- Preserve internal control over policy and workforce decisions
FAQs
Is ASO the same as outsourcing HR?
ASO is a form of HR outsourcing focused on administrative services.
Do ASO providers employ my employees?
No, the employer retains employment responsibility.
How does ASO differ from PEO?
The primary difference between an ASO and a PEO is the co-employment relationship. With a PEO, clients enter a co-employment arrangement, with the PEO sharing employer responsibility and liability, handling tax liabilities, workers’ compensation, and employment laws.
How ExtensisHR Can Help
ExtensisHR is a professional employer organization that offers a broader, more comprehensive level of support than ASO providers. Through a co-employment arrangement, we partner with small and medium-sized businesses to:
- Administer payroll and benefits
- Maintain compliance documentation and reporting
- Provide HR support services
- Design efficient administrative workflows
- Recruit top talent