Page 20 - simply Efficient Presentation 2019

ASO vs. PEO Cost Comparison

Professional Employer Organization (PEO) Administrative Fees

In the PEO arrangement, administrative fees can range from to 2% to 6% of gross

wages and the rate may vary based on the services you use and what industry you

are in; industries with lower wage employees may pay a higher percentage of gross

wages.

PEO's also factor in their workers' compensation costs that can range from less

than 1% and up to 15% of gross wages for each employee based on their individual

workers' compensation classification; office/clerical employees are typically at the

low end with manufacturing or construction classifications being much higher.

Typically, administrative fees charged by PEO's range from $1200 to $2500 per

employee per year on average.

Administrative Services Organization (ASO)

In the ASO arrangement, fees are typically charged as a per transaction or per

employee flat rate and you pay only for services purchased.

The ASO arrangement allows you to retain your own SUTA rate and although the

ASO may manage these payments for you, you typically know what your exact costs

are always. Similarly, workers' compensation is retained by you and although the

ASO may manage these costs for you, you know what your exact costs are always.

Typically, administrative fees charged by ASO's range from $50 to $100 per

employee per month on average but like the PEO, these fees can vary based on the

services included within the ASO arrangement.