Outsourced Payroll Administration: How a ASO Solution Helps Your HR Blues

Next time you get your wages you should seriously consider taking your Payroll Administrator out for coffee. Payroll Management is an extraordinarily complicated job.

Here is a sampling of the work a Payroll Administrator must perform to do her job. In any given pay period, your Payroll Administrator must process and issue employee paychecks plus calculate statements of earnings and deductions. She has to keep accurate track of employee time, absenteeism and other records. She also has to provide information to workers and executives on tax issues, benefit plans, and collective agreement provisions.

If that weren't enough your Payroll Administrator must keep up with new laws. This is especially relevant in light of the current economic situation. For example, the new American Recovery and Reinvestment Act of 2009, effects how much workers need to contribute to their the COBRA medical premiums should they be laid off involuntarily and how much credit the employer can claim to offset the balance. If all this sounds like a lot of gobbledygook to you think of how your poor Payroll Administrator must feel! (if you are interested in this particular issue you can check it out on IRS.gov)

A viable alternative to this administrative morass is to employ a professional organization that can take up the administrative duties of a Payroll Administrator as well as other Human Resources functions such as Benefits Administration. A Profession Employer Organization (PEO) is an administering company that becomes the employer of record for the client company. The workers in this instance are leased back to the client firm. This approach not only offers administrative relief for a company executive, it can also minimize liability stemming from Human Resources issues such as Payroll Administration.

Another option is the Administrative Services Organization (ASO) solution. An ASO is capable of doing all the Human Resources activities that a PEO can do but it does not require the administrative frim be the employer of record for the workers. The added bonus is that the client company can pick and choose ala carte Human Resources tasks to outsource such as Payroll or Benefits Administration.

Now that you're clued in on the complexities of a Payroll Administrator's job don't you think she deserves to be taken out for lunch!

To find out more about Payroll Administration you should check out AstraHR.com, Astra HR, an HR Administration firm.

Take on the administrative burden of payroll processing

Provide benefits administration and support

Gain access to premium employee deals

Leverage cutting-edge technology solution

Gain access to industry expert HR expertsprofessionals

Implement HR Best Practices

Most Administrative Services Outsourcing (ASO)s will have a Human Resource Information System which allows the client company to access up-to-date personnel information instantly.

A flexible, tailored approach to HR administration should combine an integrated, single source technology solution delivering efficiencies across all aspects of HR management. Clients can outsource some or all HR tasks, or simply enhance existing support capabilities. Either way, a PEO or ASO solution provides companies with help from administrative burdens. Both PEO and ASO are good options which enable you to focus on your core business competencies and ultimately your overall success.

To find out more about PEOs and ASOs you should check out AgilityHR.com, Astra HR, an HR Administration firm.
Kai Yee, is a writer, educator and a businessman living and working in Washington, DC. He has taught and lectured at in George Washington University and George Mason University. Currently, he is working as a consultant for Astra HR, an HR Administration firm.