What is a PEO?

A Professional Employer Organization (PEO) provides integrated services which enable businesses to cost-effectively manage human resources (HR), employee benefits and payroll. This is achieved through co-employment, whereby the PEO becomes employer of record for tax and insurance purposes.

What is an ASO?

An Administrative Services Only (ASO) arrangement provides many of the same services as a PEO, without the feature of co-employment. The business remains employer of record, but hires the ASO to perform specific administrative services.

Why would a business utilize PEO/ASO services?

Business managers and owners perform many complicated tasks that are necessary—but not necessarily what was envisioned when the business became a reality. Zogg steps in to perform the tasks that we are experts in handling, while managers and owners are free to focus on their core business. This is where Zogg PEO and ASO services help the most. By offloading complicated and time-consuming employer duties, businesses gain valuable competitive advantages when they emphasize efforts on company operations and growth. Employees benefit as well, with access to better benefits and increased job satisfaction (another employer advantage!).

Zogg offers the full spectrum of PEO and ASO services. Before you can decide which model best fits your needs, it is important to understand the specific distinctions. We are here to help you navigate complex challenges of business ownership, and understand the best solutions for your individual needs.

PEO’s and ASO’s—What is the Difference?

While they both alleviate an employer’s investment in cumbersome tasks like HR, regulatory compliance and claims support, key PEO/ASO distinctions determine which arrangement is right for your business.

PEO’s provide HR and related services through a co-employment relationship with the employer, while ASO’s provide similar services without the creation of employment (which also limits the manner in which they perform). An ASO, however, still provides assistance with administration, compliance and legal concerns, and access to benefits.

The PEO offering is more comprehensive, taking on a shared risk with the employer. PEO’s assume responsibility for employment, compliance, state reporting, filing and paying taxes, unemployment and so on. This effectively provides enhanced benefit access and lower costs for the employer, regardless of size.

Aother difference between the way a PEO and ASO operate regards filing statuses. With an ASO everything is preformed under the employer’s federal ID number (FEIN). A PEO fulfills these services using the PEO’s own FEIN. As such, the PEO takes on responsibility and risk for compliance, tax payments and tax filings.

The bottom line in making this decision comes down to the level of responsibility and shared tasks the employer wants to undertake. It is important to emphasize that with either arrangement, the business never loses control of ownership, company management or day-to-day decisions. The professionals at Zogg are fully equipped to work with you on any scale that best meets your custom needs.

Benefits of using a PEO or ASO...

Why would an employer want these services?

  • Increased efficiency, productivity and revenues
  • Better benefit packages to attract and retain high quality employees
  • Gaining employment expertise through a team of experienced, reliable professionals
  • Assistance with time consuming HR services such handbooks, forms, background checks, time & attendance systems, performance management and more...
  • Ensuring compliance with federal and state government regulations
  • Improving risk management and reducing liabilities
  • Lowering employment costs
  • Increased bottom line

Why would an employee want these services?

  • Enhanced employee benefit packages
  • Ontime and accurate payroll
  • Increased job satisfaction
  • 401K
  • Professional expert assistance with employee related issues
  • Enhanced claim management and resolution