Insight / Decision Guide

PEO, ASO, or carve-out: how to choose.

Three structures, three risk profiles, three pricing models. The right one depends on whether you want to keep the EIN, the workforce control, and the audit headache.

Full PEO (co-employment)

Simplified becomes the employer of record. Best for high-growth, complex compliance, limited internal HR.

Pros: lowest WC pricing, Fortune-500 benefits, full HR transfer
Cons: changes EIN on W-2s, requires onboarding migration
Fit: startups, fast-growing operators, multi-state expansion

ASO (Administrative Services Only)

Client stays the employer of record. Simplified runs the back office.

Pros: keep your EIN and brand, same program-direct WC pricing (no markup)
Cons: no EPLI coverage (included under PEO)
Fit: established companies, brand-sensitive operators, mid-year transitions that want to avoid resetting SUTA/FUTA wage bases

Payroll Carve-Out (WC only)

Keep your existing payroll. We take only the workers' comp.

Pros: zero disruption to payroll workflow
Cons: no HR or benefits leverage
Fit: companies with embedded payroll, multi-state tech, single-purpose WC fix

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