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What Is an Administrative Service Organization & How It Works


  • Administrative Service Organizations (ASOs) are a form of outsourcing human resources tasks, such as payroll processing and benefits administration.
  • By partnering with an ASO, your internal HR team can be more efficient and focus on revenue-generating activities, while maintaining compliance.
  • At Worklogic HR, we provide cost-effective ASO services to help businesses increase productivity and focus on their growth goals. Get a free HR consultation today!

Ever feel like there just aren’t enough hours in the day to tackle all your small business’s HR tasks? While taking care of payroll, benefits, and compliance is essential, it can also be a major time drain. What if you could free up some time to focus on the core aspects of your company? Say hello to the concept of an Administrative Service Organization (ASO).

ASOs are like a helping hand for your HR department, offering a range of solutions to simplify your daily processes and reduce administrative burdens. Intrigued? Keep reading to learn how ASOs can transform your HR experience.

By Partnering with an ASO, Your Internal HR Team Can Spend More Time on Strategic Initiatives

What Is an Administrative Service Organization (ASO)?

An ASO — which stands for Administrative Service Organization but can also be written as Administrative Services Only — is a form of outsourcing HR-related tasks, such as payroll, compliance, HR, and benefits administration.

An ASO acts as a partner, taking the burden of these administrative tasks and enabling companies to focus on more strategic aspects of their business. By gaining access to the expertise and resources of an ASO, companies can ensure they are following HR best practices and reducing the risks of compliance issues.

Typically, ASO services include:

  • Payroll processing
  • Benefits administration
  • Compliance support
  • Human resources administration

Beyond these core functions, ASOs can also support businesses on:

  • Insurance services
  • Workers’ compensation
  • Workplace safety

How Does an ASO Work?

An ASO operates as an extension of your HR team, handling the administrative tasks while keeping you in control.

After an initial consultation, an ASO will identify your business’s main administrative challenges and tailor their offering to your specific needs. Then, they’ll integrate their systems with the tools you are already using, ensuring a smooth transition for your employees.

Daily, your dedicated ASO team becomes your go-to resource for core HR functions. They’ll handle tasks like payroll processing, ensuring your employees get paid accurately and on time. They’ll also manage benefits administration, simplifying enrollment and keeping you compliant with complex regulations.

However, the role of an ASO goes beyond taking over time-consuming tasks: They become a valuable partner and provide expert guidance on any HR questions or concerns you may have.

They’ll also provide data-driven insights into your workforce, that might help you make informed decisions about your HR strategy.

ASO vs PEO: What’s the Difference?

You might be wondering about the difference between ASOs and Professional Employer Organizations (PEOs). While both offer solutions for businesses looking to outsource HR tasks, they handle employment relationships in different ways.

Let’s break down the differences:

Employer Relationship

  • ASO: You remain the employer. When you partner with an ASO, you retain all legal and financial responsibility for your employees. An ASO acts as an extension of your HR department, handling administrative tasks but it doesn’t assume any employer obligations.
  • PEO: Co-employment relationship. A PEO co-shares employment responsibilities with your company. They become the legal employer for payroll and tax purposes, while you maintain control over day-to-day operations and employee relations.


  • ASO: ASOs typically focus on core HR tasks like payroll processing, benefits administration, and compliance. However, they may offer additional services.
  • PEO: They generally offer a more comprehensive suite of HR services. In addition to core HR functions, they may provide services like risk management, workers’ compensation administration, and even employee recruitment and onboarding.


  • ASO: They don’t provide access to benefits. They only manage the administrative side of the benefits that you’ve already contracted.
  • PEO: They often act as the employer for benefit purposes, offering access to their group health insurance plans, dental plans, vision plans, and other benefit packages. Due to their larger pool of insured individuals, PEOs can often negotiate more affordable rates with benefit providers.

Benefits of Using an ASO

Companies can reap significant rewards by partnering with an ASO. These are the top 4 advantages:

  • More efficient HR team: Administrative tasks can take up too much time from your HR team. By outsourcing these tasks to an ASO, you can free up valuable internal resources to focus on more strategic initiatives.
  • Improved compliance: Employment laws and regulations are constantly evolving. ASOs stay up to date on the latest compliance requirements, ensuring your company remains compliant and avoids costly penalties.
  • Reduced risk: Managing employee benefits is complex, and even minor errors can hurt your business’ finances. ASOs help you mitigate these risks by ensuring accurate enrollment, eligibility verification, and claims processing.
  • Scalability: As your business grows, your HR needs evolve. An ASO can easily scale its services to meet your changing demands and have experts readily available for you.
ASOs Ensure Your Company Remains Compliant with HR Regulations

Increase Business Productivity with an ASO

Partnering with an Administrative Service Organization can empower businesses of all sizes. ASOs can handle your most time-consuming HR activities while providing expert guidance along the way.

At Worklogic HR, we offer cost-effective ASO services for your non-revenue-generating tasks, covering a wide range of services, from payroll administration to workplace safety. By bringing our expertise and resources to your company, we keep your business compliant and ensure you follow HR best practices.

Ready to unlock the potential of an ASO for your business? Get a free HR consult today!

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Disclaimer: The information and resources provided herein are not a substitute for experienced legal counsel and does not constitute legal advice or attempt to address the numerous factual issues that inevitably arise in any employment-related dispute. Although this information attempts to cover some major recent developments, it is not all-inclusive, and any recommendations are based upon HR best practices and procedures. We recommend you consult an attorney for legal guidance.

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