How to Decide if an Administrative Services Organization Will Save You Money

posted on Sep 07 by admin in the Human Resource Administration category

When you are looking to save money or reduce labor in your business, Human Resources can often be an excellent area to reduce bottlenecks. An administrative services organization, also known as an ASO, could be instrumental in saving you a substantial amount of time and money. Here are a few tips for deciding if an ASO will be the right solution to reduce cost in your business.

An ASO is an organization that independently handles many of your employee needs. This includes payroll processing, paying medical benefits, as well as handling employee taxes. Another organization that is similar to an ASO is the professional employer organization or PEO.

The main difference between the two types of organizations is who is responsible for the employees. A PEO leases the employees to you for a percentage of their pay. An ASO has no claim on the employees and charges a straight fee for its services.

Here are some ways to find out if an ASO will reduce cost and increase productivity of your business.

Is your human resources department taking too much of the budget, or could you use less of a burden in your payroll processing? Often many staff members will be needed to do the said administrative work for the company. By utilizing an administrative services organization you will be reducing the workload on your current staff members and may be able to reduce the cost of payroll processing.

Does your company need help with medical benefits administration and support? If you are finding it difficult to provide the necessary health benefits to your employees, you could be setting yourself up for a difficult, perhaps even legal issue in the future. By enlisting the help of an ASO, you will be placing these detailed responsibilities upon another organization.

Does your company accurately understand all of the minute details about local, federal and state tax practices? Also does your company have the ability to stay informed in all of these areas and keep up with current practices? If you decide your company could stand to outsource these responsibilities, you could place these responsibilities on an administrative services organization.

Finally the real question is; has administrative work become a nightmare for your current staff employees? Has work become difficult to manage or prone to mistakes? Any mistake on payroll could cost a few hundred dollars or more, and when you add the IRS penalties you could incur, your company could stand to lose a great deal of money. ASO’s often employ the use of a human resource information system, or HRIS. An HRIS is an intelligent database system that tracks and manages your employees. With access to the HRIS, you could follow and manage your employees and ensure things are running smoothly.

Whether or not your company could use an administrative service organization is up to you. If you answered yes to any of the above questions, you may want to look for ASO’s in your area that can provide the services at a price you can afford. An administrative services organization provides payroll and employee benefit reliability. One thing is certain; an administrative services organization could make your business more manageable.

Visit ASO & Human Resource Services for assistance with your ASO questions.

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