MPG SOLUTIONS > ADMINISTRATIVE SERVICE ORGANIZATION (ASO)
An Administrative Services Organization (ASO) can help employers navigate ever-changing compliance burdens, provide administrative HR tasks, process payroll, and administer benefits. These services can be bundled or offered a-la-carte. The ASO doesn’t create a true co-employment relationship as with a Professional Employment Organization (PEO). The business remains the employer of record, processes its own payroll, and pays taxes under its own tax ID.
ASOs also provide employers with a unique a-la-carte offering with Workers’ Compensation as its main product. In this case, coverage is provided by the business’s own policy – similar to the standard Workers’ Compensation market. Under the ASO model the business’s experience modification is used (like in the standard market) to determine rates.
The ASO model for Workers’ Compensation is ideal for mid-sized Staffing firms and other type of risks, which MPG can secure for you. New potential ASO clients’ needs are evaluated and underwritten by both the ASO and their Workers’ Compensation carrier, which usually takes two to four weeks to complete.
The ASO uses a pay-as-you-go process, providing employers with better cash flow management. With pay-as-you-go, the client pays the premiums during an actual payroll period or monthly. This is unlike traditional Workers’ Compensation billing, which is based on anticipated or estimated annual gross payroll wages to determine an estimated annual premium, and requires an audit to make any premium adjustments based on annual payroll wages versus what was originally estimated. Pay-as-you-go can protect the business from audit surprises, and there are lower upfront down payments.
With more than 30 years of experience and $900 million in payroll in our programs, MPG can find a Workers’ Compensation solution for most any distressed risk in any industry. We do this through our carefully selected, vetted and contracted Standard Markets, Administration Service Organizations (ASO), Professional Employer Organizations (PEO), Employer Of Record (EOR), and Captive program markets. MPG delivers to Agents & Brokers and their clients the right tailored solution. One size does not fit all when it comes to Workers’ Compensation solutions.