Let's focus on ASOs—they're basically your HR admin helpers. An ASO is a service provider that offers support with administrative HR tasks, such as payroll processing, benefits administration, and HR administration.  

Unlike a PEO, an ASO does not operate under a co-employment model. Instead, ASOs are a practical option for companies seeking simple assistance with the administrative aspects of HR without outsourcing broader HR management functions.  

While PEOs and ASOs might look similar at first, they work quite differently , and this can really affect how your business runs, your risk exposure, and your costs. 

Now, you might be wondering whether to go with a PEO or an ASO. It really comes down to what you need. Think about how much help you want, whether you'd like someone to share the risks with you, and where your business is headed. Are you planning to grow quickly? Expand to new locations? These are the kinds of questions that'll help you pick the right fit. 

Now, let’s focus on HROs (Human Resources Outsourcers). These service providers help businesses manage specific HR functions by outsourcing them to external experts. Unlike PEOs, which offer comprehensive HR support under a co-employment model, an HRO focuses on individual HR tasks such as payroll processing, recruitment, or benefits administration. HROs are often used by companies that want support in particular areas of HR while maintaining direct control over others.  

HROs have been around for ages, helping businesses delegate their HR work. But here's the thing—as managing employees gets more complicated and there are more rules to follow, the differences between HROs and PEOs become more apparent. 

The distinction between PEOs and HRO providers is especially clear when considering risk management. PEOs generally offer stronger, broader compliance programs due to the co-employment model. Conversely, HROs only advise on compliance issues related to its narrow function. When considering data from the Competitive Enterprise Institute that shows businesses face an average of $10,000 in compliance costs per employee annually, the PEO model is better equipped to help mitigate these expenses than HROs.  

For businesses weighing these options, the choice often extends beyond simple cost comparisons. While HRO providers can effectively handle specific HR functions, PEOs offer a more integrated and comprehensive approach to workforce management. The co-employment model unique to PEOs provides additional layers of protection and support that become increasingly valuable as organizations grow and face more complex HR challenges.   

Payroll providers help make sure your team gets paid correctly and on time. They handle all the nitty-gritty like figuring out everyone's wages, taking out taxes, dealing with benefit deductions, and sending out pay stubs. Plus, they keep up with all tax rules and take care of important paperwork like W-2s and 1099s at the end of the year. 

Payroll providers and PEOs are very different ways to handle your HR needs. Sure, running payroll might seem straightforward, but it's connected to tons of other HR stuff, like making sure you're following tax laws and managing benefits. A lot of companies start out just using a payroll service, but as they grow, they realize they need way more help than that.

Here's a reality check: the IRS says 40% of small businesses end up paying penalties (around $845 per year on average!) because they mess up their payroll taxes. This is where PEOs come in handy—they help you avoid these headaches with their comprehensive compliance guidance. 

Think about where your company's headed and what kind of rules you need to follow when you're choosing between these options. Sure, payroll providers are great at getting those paychecks out, but there's a lot of other HR stuff they just don't handle. 

As your company grows and things get more complicated—like managing your team, handling benefits, and following all those pesky regulations—having a PEO in your corner becomes super valuable. They don't just handle your payroll; they give you everything you need to grow your business without all the HR headaches, such as:  

•       Payroll processing and payroll tax administration 

•       Workers’ compensation and employment practices liability insurance 

•       Human resources support 

•       Employee health care, other benefits, and/or program administration (optional) 

So, what's an HR platform? It's basically a tech tool that makes all your company’s HR stuff easier to handle. Think of it as one big digital hub where you can manage payroll, benefits, getting new employees set up, keeping track of rules, and checking how everyone's performing. Instead of juggling a bunch of different systems, everything's in one place, which makes life easier. 

Many of these platforms, like MyFrankCrum, have cool features such as self-service portals where your employees can log in to check their pay stubs, update their info, or look at their benefits without having to bug HR every time. Pretty handy, right? 

These days, everyone's going digital with HR, and there are tons of these platforms out there promising to make managing your team a breeze. But here's the thing—while they've got nice features, HR platforms are totally different from what a PEO offers. PEOs typically combine a slick HR technology solution with actual human expertise backing everything up to provide complete HR services. 

This becomes important when your company starts growing. Sure, HR platforms are functional, but at the end of the day, you may need HR guidance that goes beyond what software can provide. Technology can't handle everything on its own. 

The choice between an HR platform and a PEO ultimately comes down to your organization's need for human expertise and support versus a purely self-service, digital solution. 

Think of PEOs as giving you the best of both worlds—they've got the tech you need, plus real people who know their stuff to help run your HR. It's like having a super-smart HR system AND a team of experts in your corner. This combo becomes handy when managing your team gets complicated—because sometimes you need both clever software AND actual humans to figure things out. 

Should you keep HR in-house or team up with a PEO? Here's the deal: with traditional HR, you're handling everything yourself with your own employees. But with a PEO, you're basically getting a partner who shares both the responsibilities and risks of being an employer.  

Working with a PEO comes with some serious advantages. Because they work with lots of companies, they can hook you up with benefits packages that would normally be too costly for smaller businesses to get on their own. Plus, they keep track of all those tricky federal and state rules, so you don't have to worry about messing something up. This is huge when you consider that fighting an employment lawsuit can cost a small business around $125,000! 

Money-wise, it's a different ball game too. Running your own HR department means dealing with fixed costs and surprise expenses that can pop up out of nowhere. But PEOs usually charge by the employee or take a percentage of payroll, which makes it way easier to plan your budget and adjust as your company grows or shrinks. 

Here's maybe the best part for small businesses: PEOs give you access to HR experts who know their stuff inside and out. Hiring all these specialists yourself would cost an arm and a leg. Instead of being limited by the knowledge of your in-house team, you get a whole crew of HR pros who are experts in everything from benefits to keeping your business legally protected.