Glossary · PEO basics
ASO (Administrative Services Organization)
A service model that handles HR, payroll, and benefits administration without entering a co-employment relationship.
An Administrative Services Organization (ASO) provides outsourced HR support without sharing employer-of-record status. The client retains its own FEIN and direct legal employer status; the ASO acts as an administrator only.
ASOs are commonly used by employers that want PEO-style operational support but cannot or do not want to operate inside a co-employment structure — often because of state licensing, customer-contract restrictions, or desire to keep direct control of benefits sourcing.
Related terms
- PEO (Professional Employer Organization)A PEO is a firm that co-employs a client's workforce to deliver payroll, benefits, HR, and compliance services under a shared-employment arrangement.
- Co-employmentA contractual arrangement in which two entities — typically a PEO and its client — share legal and operational responsibilities for the same workforce.
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