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What is the difference between an ASO and a PEO?

Q: What is the difference between an ASO and a PEO?
A: First of all, ASO stands for Administrative Service Organization. The largest difference is that the employees do not shift to a co-employment relationship. The employees remain with the employer and all taxes are paid under the clients tax ID numbers. The services are exactly the same as far as how the clients are treated internally by Delta. We still handle all the Human Resource issues, Risk Management issues, Benefit Issues and Payroll and taxes are still processed by Delta. There is not as much of a shared liability because there is not the co-employment relationship. Contractually Delta still assumes the tax liability as long as the invoices are paid on time. Some clients need the employees to remain in their corporate ID because of certain internal issues, or they may be getting government funds for the amount of employees they have on staff, etc.


 

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