How an ASO is a Game Changer For Businesses

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How ASO Solutions Are Changing The Way Businesses Take On Administrative Work

Have you heard of an ASO (Administrative Service Organization)? If you have not, Jay Tomascik, Senior Business Development Manager at AXIS Group is here to break down ASO and PEO solutions for you.  Who knows? You might just find that an ASO could potentially be the perfect fit for your business.

What is an ASO?

ASO stands for an administrative service organization. ASOs are a workers’ compensation alternative offered by PEOs on their master policy. They essentially take the relationship of the PEO and eliminate two-thirds of it. That means instead of having to outsource your payroll or your HR-related tasks – which not every company needs – you can attach to the master policy of the PEO’s worker’s compensation plan on a month-to-month basis. 

In short, the PEO provides your business the administrative support to reduce the administrative burden. With an ASO, your current payroll and human resource management processes remain internal or with your preferred vendor. You still reap the benefits of reduced administrative burden to save time and keep you focused on your business.   

So how does an ASO work in the real world?

Quite well depending on your situation. Recently, a construction client came to us at the beginning of the Covid-19 pandemic with concerns about how he would keep his business afloat. Like many, the owner was unsure what impact the pandemic would have on his bottom line. If it was major, he may have to reduce his employee count. 

He was aware that hiring a PEO could help his company weather the storm of a global pandemic, but he wasn’t comfortable going the full PEO route unless he absolutely had to. Why? Because he wasn’t sure if he could meet the monthly minimum payroll required for full PEO benefits. However, keeping his goals at the top of mind, our underwriting department scoured our market and found an ASO program that would satisfy his request.

“Basically, your current Human Resources and payroll processes remain with your preferred vendor while you reap the benefits of reduced administrative burden through the ASO.”

What value did an ASO provide to the business?

The ASO solution not only saved the client money, but it also provided the company with the administrative support and reporting efficiencies he desired. In addition, he also has no annual audit. Thanks to the ASO, he was able to keep his business moving forward. 

We were pleased to be able to offer him a solution that worked with his scenario. In a year or two, we may be able to offer an additional cost reduction and if he decides to grow his business, he may opt to upgrade into a full PEO solution. All in all, this was a win-win for everyone involved because we believe that when our clients succeed, we all benefit.

Not sure if you are ready to make the transition from standard market to full PEO? An ASO might be the perfect solution. Our team is ready to help you make an informed decision that lines up with your business goals. Contact Jay at (813) 251-3181 ext. 418 to get started.

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