An ASO (Administrative Service Organization) handles all the payroll related matters like a contracted payroll company (think ADP or Paychex) PLUS most of the workers compensation issues that arise in a staffing company. An ASO can significantly streamline your back office’s fixed expenses too, since their charges vary according to your weekly payroll totals. You can use an ASO with your standard State Fund or private carrier workers compensation policy. The usual charge for an ASO service is about 2-3% of your payroll.
The ASO will handle all payroll and tax filings for your staffing company, All the paperwork is filed under your federal employer’s identification number. Questions about regulatory compliance issues will be handled by the ASO too. An ASO can offer you assistance with legal questions, but the employee is legally the yours. Finally the ASO will handle day-to-day administrative matters relating to human resources including all workers compensation issues.
Many staffing companies find this preferable because they retain complete control over the employee, and can still be very hands-on without having to handle mundane human resource functions on a daily basis. An ASO is great for smaller 1-2 person staffing offices where your focus needs to be on sales and service!
Please let me know if you would like to explore this payroll and workers compensation management option for your staffing company, and if you would like a quote on these services.
All the best
David
202-302-1212
www.StaffingCompSolutions.com