Comparison of Human Resources Outsourcing Service Types

With all of the available Human Resources Outsourcing services, it can be a little confusing. The following comparison chart may help clarify the labyrinthine variety of outsourcing options.

Payroll Employee Leasing (PEO) ASO HRO
Functions Performs payroll duties on behalf of the client Functions as the client’s HR department Supports the client’s HR department Functions as the client’s HR department
Taxes Reported and deposited Reported and deposited Reported and deposited Reported and deposited
Workers’ Compensation Insurance (none) Coverage provided under PEOs policy Administers client’s policy Administers client’s policy
Safety/Risk Management (none) Claims managed and safety programs administered by PEO Administers client’s risk management program Administers client’s risk management program
Benefits (none) Supplemental benefits offered under master policy; 401(k) provided by policy in client’s name Administers client’s policies and packages Administers client’s policies and packages
Support Center (none) Provides support center for employees and managers Can provide support center for managers Provides support center for employees and managers