Any business – large or small – needs someone to handle administrative tasks: things like payroll, bookkeeping, human resources, and other administrative tasks. Some businesses may have one person or, in the case of a large company, several people on staff to handle those things. Of course, when you have these folks on your payroll, you usually have to provide some kind of benefits, which can increase how much each employee is costing you. And, if your business is relatively small, it might be just you trying to do everything and you’re not finding either the time, nor the inclination to do it. But there is another option: it’s called an ASO, or administrative-services-only contract.
What is ASO?
They are specific services performed for your business through a company to whom you’ve outsourced those duties to. It could be as much or as little as you want them to handle, but in essence it entails the ASO company handling any administrative or back-end office work that needs to be done – up to and including ensuring that you remain compliant with all local, state and federal laws and regulations. Meanwhile, you get to remain the employer of record, while at the same time are free to grow your business by handling other duties at which you are more adept.
What Are the Benefits to You?
Besides the ability to focus on the things you excel at, an administrative-services-only contract provides you with a variety of benefits.
First, because ASO providers have legal and regulatory compliance people in their pool of experts, they are able to provide you with information as laws in your area or nationally, or within your specific job classification change. That can save you huge costs in fines or other assessments were to run afoul of the law.
Second, their human resource experts make sure you are up-to-date on all human resource regulations, as well as income tax requirements, employment contracts, etc.
Third, as mentioned earlier, you are able to save money otherwise spent on another salary or an employee’s hourly wages, but the insurance or other benefits that go along with it.
All in all, despite your having to pay for services provided under the ASO, administrative-services-only contract, the money you save might well be worth it. And the time you save can be spent doing what you like and need to do in order to grow the business.