Our Solutions
Compensation Solutions will provide your company with a Fortune 500 or "Big Company" style integrated personnel management program.
Your employees will have access to the same human resources and benefits programs as the nation's largest companies (Employee Benefits, Direct Deposit, Workers Compensation, Staffing, etc.), while still maintaining your small to mid-sized company culture.
Contact Us
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500 Valley Road Wayne, NJ 07470 O: (800) 654-4234 F: (201) 405-1116 E: contactus@csihro.com |
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Comparison of Classic PEO to Classic ASO
| Type of HRO Service | Classic PEO | Classic ASO |
|---|---|---|
| Employer of Record Responsibilities | Employer and employee taxes reported and deposited under the PEO’s Federal Employer Identification Number (FEIN). | Employer and employee taxes reported and deposited under the Client’s FEIN. |
| Workers' Compensation Insurance | Coverage provided under PEO’s master policy, with each client maintaining their individual modification rate. | Coverage provided by client's own policy. A policy must be provided for each client individually and the client maintains their own modification rate. ASO is named as broker of record (BOR). |
| Safety and Risk Management | Claims management provided by PEO. Safety programs compliance administered by PEO. | Claims management provided by ASO. Safety guidance provided by ASO. |
| Health, Dental & Vision Plans | Coverage offered under PEO's master policy, client may choose to use own policy. | Coverage provided by client's policy only.ASO is named as BOR. |
| Supplemental Benefits & Retirement Plans | Supplemental benefits offered under PEO's master policy. 401(k) provided by PEO Multiple Employer Plan (MEP) or as a Standalone Plan in client's name. | Supplemental benefits offered by client's policy in client's name. 401(k) sponsored by client may choose Standalone or MEP. ASO is named as BOR. |
| Section 125 Flexible Spending Accounts | The PEO is the Plan Sponsor and is responsible for administration and testing. | The Client is the Plan Sponsor and the ASO is responsible for administration and testing. |
| Human Resources | Majority of human resource (HR) services are included in PEO pricing. | Multitude of services offered in either “a la carte” or bundled pricing. |
| Regulatory Compliance | Required to be provided by PEO | Client’s responsibility with assistance provided by ASO's best practices. |
| Added Value to Client | The PEO model is a shared risk arrangement through the establishment of an Administrative-Employment relationship between PEO, the client, and the client’s employees. Under this model, PEO assumes a large portion of the financial, occupational, and operational risks associated with the employees on behalf of the client. This model reduces the cost of maintaining and delivering services to the clients, which reduces each client’s operating costs. | By aggregating multiple clients together and servicing from one location, economies of scale and service are achieved, thereby reducing the cost of maintaining and delivering human resource and personnel management services to clients, which in turn reduces each client's operating costs. |
| Why Does My HRO Want to Designate the Broker of Record? | Your HRO will want to designate a BOR in order to provide the HRO with access to billing, enrollments, claims assistance, disputes and other plan administrative tasks. Additionally, only your HRO, through an aggregation of expertise and purchasing power, is uniquely qualified to negotiate and deal with the complexity of multiple plan designs and burden of administering today's ever changing benefit offerings | |
