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Outsourcing your HR: Is it better to go with a PEO or an ASO?

Handing off HR responsibilities can make your business light and nimble, and also take a load off of expenses and liabilities.

You are constantly dealing with employee-related problems. Those problems eat up your time and create stress and frustration.

Someone didn’t get their paycheck.

Your company is being fined for breaking an employment regulation.

Repeated on-the-job accidents are causing many workers’ comp claims and rising insurance costs.

All these problems and more are giving you reasons to consider outsourcing your company’s HR administration. You want to end your battle with payroll, benefits and human resources functions.

But how can you tell whether a PEO (professional employer organization) or ASO (administrative services organization) would be best for your business?

The fact is that a PEO and an ASO can both provide you with the same services to handle your employee-related matters. So, what’s the difference?

With a PEO, your company enters into a co-employment agreement.  The PEO assumes certain employer rights, responsibilities and risks – and they also become the employer of record with the IRS. That means your employees are contractually working for the PEO, but managed and directed by you.

With an ASO, you do not enter into this type of co-employment agreement. An ASO is the right choice if you need your employees to remain in your corporate ID.

For instance, you may have certain internal issues that keep you from filing under a PEO ID. You may be receiving government funds for the amount of employees you have on staff.

If none of those issues are present, a PEO may be your best choice.

Now you may be wondering, is this one of those “fired and rehired” schemes?

It definitely is not when you partner with Delta Administrative Services.

With Delta, your workers will actually have two employers. Delta will absorb the responsibilities and liabilities for the HR and personnel obligations of your employees. These responsibilities include wages, employment taxes, workers’ comp, unemployment insurance and employee benefits.

Meanwhile, you get to focus on the job side of your employees.

Think of it as you being the head coach of a football team, while Delta plays the roles of the assistant coaches.

The assistant coaches train the team during practice, keep them in shape, teach them how to run the plays, etc. The head coach is responsible for directing the team during the game, calling the plays, making the big decisions that help the team win.

So, what it boils down to is that Delta handles the boring day-to-day tasks, so you can focus on the big issues that help your business run better.

When you partner with Delta, you’ll gain the valuable time you need to run your business properly… whether you choose a PEO or ASO relationship.

You won’t be stuck in a two-hour meeting about safety improvements. You can use that time to plan next year’s business strategy.

Instead of trying to keep your company from getting fined for breaking a regulation, you can work on new ways to motivate your leadership team. Rather than handling the depressing task of reviewing yet another workers’ comp claim, you can spend your time on something more pleasant – like taking a potential client out to lunch.

One of the best aspects of partnering with Delta is that you’ll begin to enjoy your job more, because so much of the day-to-day frustration and stress will be gone.

That’s the kind of positive change that can actually make your life better; because when you’re happier at work, you’re happier at home.

And when you no longer have to work overtime handling so many problems, you can spend more time with your family or relaxing. And, of course, it doesn’t hurt that Delta’s services can increase the profitability and productivity of your business while also reducing labor costs.

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