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Classic ASO |
Classic ASO Detail |
Considerations for your company |
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Employer of Record Responsibilities |
Employer and employee taxes reported and deposited under
the Client’s FEIN. |
In an ASO arrangement, the ASO does not formally take on
the employer of record responsibilities. Although they
provide all of the same governmental reporting tasks, it
is done under the Federal Employer Identification Number
(FEIN) of the client company, much like a payroll
service might do. The client company remains legally
responsible for all tax remittances and payroll law
compliance. The
ASO will require you to sign a Client Service Agreement
(CSA) when becoming a client. This is an important
document which defines each party's responsibilities in
the ASO relationship. |
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Workers’ Compensation Insurance |
Coverage provided by client's policy. ASO named as broker of record. |
If your company currently has an attractive Workers'
Compensation insurance policy in place, an ASO
arrangement can help you administer your own policy. An ASO can also assist you with obtaining a new
workers' compensation policy with the ASO being named as
broker of record (BOR). |
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Safety and Risk Management |
Claims management provided by ASO. Safety guidance provided by ASO. |
If
the ASO is assisting you with obtaining your own
workers' compensation policy, then as BOR the ASO will
take on an advisory role... any adverse claims
experience will affect your experience rating. Depending upon the level of service you have
contracted for, an ASO can provide a cost effective
solution in creating and managing safety committees,
safety training, and a safety awards program. |
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Health, Dental & Vision Plans |
Coverage provided by client's policy. ASO named as broker of record. |
If your company currently has an attractive Health Plan
in place, the ASO as BOR can assist you with the
administration of your plan. Your ASO may also assist
you with obtaining quotes for alternate health plans. By designating the ASO as your BOR, you will
allow your ASO access to billing, enrollments, claims
assistance, disputes and other plan administrative
tasks. |
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Supplemental Benefits & Retirement Plans |
Supplemental benefits offered by client's policy in
client's name. 401(k) sponsored by client may choose
Stand Alone or MEP. ASO named as broker of record. |
Supplemental Benefits cover a large area of services
including: Life Insurance, Short Term Disability, Long
Term Disability, 401(k), Flexible Spending Account
(FSA), etc. ASOs often have master multiple employer
policies in place that may be made available on a
voluntary basis to your employees. For 401(k) plans,
the rules for ASOs have changed recently. ASOs may
assist your company in setting up a 401(k) plan that
meets your needs and satisfies governmental regulations. Types of plans available may include: Traditional
401(k), Simple 401(k), Safe Harbor 401(k) or Profit
Sharing. |
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Human Resources |
Multitude of HR services available are offered in either
“a la carte” or bundled pricing. |
ASOs vary widely in their offerings and pricing for HR
services. Some services, like preparation of employee
handbooks, are included while others, such as drug testing,
may be provided for an additional fee. Once you are
engaged with an ASO you will be assigned a dedicated HR
professional to assist with your HR needs. If you
currently have an HR staff member, the ASO can act as an
invaluable advisor to him/her. The HR services you
expect need to be clearly listed in the CSA. |
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Regulatory Compliance |
Client’s responsibility with assistance provided by
ASO's best practices. |
ASOs work to ensure compliance with a multitude of
governmental regulatory agencies. Employer rules
regarding policies, procedures, employee handbooks and
other regulatory issues vary from state to state. Clarifying and distributing formal policies and
procedure can reduce your company's liabilities in the
event of a sexual harassment, discrimination suit,
workers compensation or unemployment claim. |
