When your business is small, an ASO (Administrative Services Organization) can feel like enough. It helps with payroll and a few HR tasks, but as your team grows, so do your challenges. That’s when moving to a PEO (Professional Employer Organization) makes all the difference.
If you’ve been using an ASO, here’s what it means to switch to a PEO — and why it’s the smarter long-term choice for small and medium-sized businesses.
Why ASOs Fall Short as You Grow
An ASO is designed for basic help. You’re still the one responsible for compliance, taxes, and benefits. For a small team, that may work. But as soon as you grow, cracks start to show:
- Compliance gets complicated — keeping up with changing state and federal rules is tough.
- Benefits cost more — small companies can’t always offer the same perks bigger employers can.
- Risk stays with you — if something goes wrong, you’re the one on the hook.
What You Gain by Switching to a PEO
With a PEO, you get a true HR partner — not just admin support. That means:
- Better benefits at better rates — health insurance, retirement, and more.
- Shared compliance responsibility — the PEO helps carry the legal and tax burden.
- Simplified payroll and HR — one system that takes care of it all.
- More time to focus on your business — instead of HR headaches.
How to Make the Switch From ASO to PEO
- Review your current contract
Know your ASO’s cancellation terms and timing. - Choose the right PEO
Look for one that can handle payroll, compliance, and benefits under one roof. - Communicate with your team
Let employees know what’s changing and highlight the benefits they’ll gain. - Transition your systems
Your PEO will take over payroll and compliance filings. - Onboard smoothly
Work closely with your PEO during setup to minimize disruptions.
Why Now Is the Right Time
As a small or mid-sized business, you can’t afford costly payroll mistakes, compliance penalties, or weak benefits packages. A PEO gives you the resources and protection of a larger company — without losing control of your business.
Ready to Grow?
Moving from an ASO to a PEO is more than just changing service providers — it’s a step toward growth. With a PEO, you can simplify HR, offer employees better benefits, and free up your time to focus on what matters most: running your business.
ComployHR specializes in helping small and medium-sized businesses make the transition with confidence. Ready to see how a PEO can support your growth? Let’s talk.
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