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 |