An administrative services organization (ASO) is an organization that provides outsourced solutions to meet the administrative and HR needs of the client, with the client retaining all employment-related risks and liabilities.
[3] Ultimately, with this structure, tax and insurance filings are done through the administrative firm, but under the client company's employer identification number.
All W-2 and workers' compensation policies remain the responsibility of the employer and not the administrative firm.
Administrative firms performing ASO duties conceptually save business owners time and money through economies of scale.
ASOs are built for larger companies that need the actual functions of payroll, workers' compensation, health and wellness benefits and HR support and Services done for them.