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What is a PEO?
- The second advantage is the state unemployment tax rate. Simple definition - you are now under the PEO's SUTA rate. If you have had a high employee turnover experience in the past and have a high SUTA rate you could benefit significantly being under the PEO's lower SUTA rate.
- The third advantage is the workers' compensation. Simple definition - you are now under the PEO's master workers' compensation policy and can say goodbye to annual workers' comp audits and premium deposits.
- The fourth advantage is the expertise. Simple definition - you no longer have to be an expert at everything. Through the PEO relationship you now have access to a team of professionals and industry experts dedicated to helping you manage the risks and responsibilities related to your business and your employees.
What is an ASO?
- You are happy with your current benefits and workers' compensation broker. Simple definition - under the ASO option you can retain your current relationships with insurance brokers and insurance carriers while gaining access to experts to manage the insurance administration functions on your behalf.
- I have a low SUTA rate and low employee turnover. Simple definition - under the ASO arrangement you retain your own SUTA rate but gain access to a team of professionals to assist with unemployment claims and administration as they occur. ASO is a strategy that most businesses take. In fact, when you consider an Administrative Services Outsourcing (ASO) solution, your business can reap the benefits of easier management conveniently done for your company’s interest. The ASO solution involves a multitude of business transaction based human resources services that consist of payroll, employee data management, and benefits support.
What is the benefit of partnering with this type of service?
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