Administrative Services Organization (ASO)

An Administrative Services Organization (ASO) provides HR administrative services to businesses without entering into a co-employment relationship. Unlike a PEO, an ASO acts as a service provider rather than a co-employer — the client company remains the sole employer of record for all tax and legal purposes.

ASO services typically include payroll processing, benefits administration, HR consulting, and compliance support. Because there is no co-employment relationship, the client company retains full employer liability and does not benefit from the risk-pooling advantages of a PEO.

ASOs are often a better fit for larger businesses that want administrative support but already have strong HR infrastructure and competitive benefits programs.