ASO Payroll Services Total Tax Services Pay-As-You-Go Workers' Comp PEO / Employee Leasing PEO FAQs Payroll Solution Options Payroll is one of the largest expenses for small and medium sized businesses. It can also be a company’s biggest headache if not administered properly. In 2014, 1 in 3 businesses incurred payroll related tax penalties due to mistakes thus requiring additional time and headaches communicating with the IRS to resolve the issue. The main reasons companies outsource payroll is compliance, accuracy, and time. Mistakes are notoriously commonplace and with ever changing payroll tax laws and compliance issues, this can lead to these errors. Outsourcing can eliminate these errors as payroll experts such as APR specialize in that area. Payroll Services, PEO or ASO — Which is right for you? The Payroll Services, PEO and ASO models enable employers to cost-effectively outsource the administration of payroll, human resources, employee benefits, and workers' compensation to a third party, allowing business owners to focus on running their business. The major distinction between a Payroll Provider and a PEO or ASO is that the PEO becomes the employer of record (co-employer) for tax purposes and provides the above services in one bundled package, differentiating it from Payroll Services or ASOs which allow individual service purchase.