Your Administrative Services Outsourcing alternative: OneSourceHR vs. traditional models
Traditional HR administration vs. the OneSourceHR ASO Model
Most businesses are already outsourcing payroll, employee benefits and retirement plan services to multiple service providers. Common results of this practice are multiple invoices and information systems, multiple contacts, layers of paper and a great deal of time wasted.
Our ASO Model offers the ultimate solution for businesses looking for administrative relief and professional management of their employment and Human Resource practices. By integrating payroll, employee benefits, 401(k) plan requirements and employment administration into a streamlined and efficient system that results in a single point of delivery, our clients can reallocate internal resources toward more strategic initiatives that drive better business results.
To better illustrate the potential benefits, let’s look at some traditional HR processes compared to our ASO model. Click on a title below to get started.
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Traditional*
- Complete application, I-9, W-4 and related tax forms
- Direct deposit forms and pre-note processing
- Fill out medical benefit application
- Fill out ancillary benefit application
- Review benefit options and costs
- Fill out 401(k) enrollment form
- Fill out Flexible Spending Account (FSA) forms
- Return incomplete applications to employee
- Review and confirm all forms
- Set up payroll entry and all deductions
- Review policy manuals and procedures
- Send all forms to carriers and service providers
- Reconcile changes upon receipt of multiple vendor invoices
- Make required changes and adjustments
- Create employee file
- Scan and review documentation
*These same requirements apply to terminated employees, in addition to COBRA requirements
OneSourceHR
- Submit employee change form to account rep
- Entire orientation process conducted electronically through your HR Business Partner
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Traditional
- Reconciliation of multiple vendor invoices against payroll reports
- Multiple adjustments, credits and debits based on enrollment changes
- Recordkeeping and file maintenance
- Ongoing benefits administration
- 401(k) maintenance, loan processing, balance tracking
- COBRA and FSA administration
- Multiple vendor invoice payments
- General ledger import and maintenance
OneSourceHR
- Consolidated monthly invoice with all vendor payments made direct via Automated Clearing House
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Some businesses that are looking to streamline these processes have outsourced these functions to Professional Employer Organizations (PEOs). In many cases, PEO clients have the perception that in addition to outsourcing administrative functions, they are also capturing economies of scale on insurance products such as employee benefits and workers compensation by joining the PEO’s “pool.”
This perception is inaccurate. In today’s market, insurance rates from PEOs are as high, or higher in many cases, when compared to what a client can procure in the open market. In addition, PEOs offer a fully bundled service offering with little flexibility for the client. Clients are ultimately paying for a multitude of included services, which in many cases are not being used. In addition, most PEOs charge a percentage of paid client wages and are reluctant to disclose actual fees. This results in PEO clients constantly guessing as to what their actual costs are.
The PEO model vs. the OneSourceHR ASO model
PEO |
OneSource HR ASO |
- Employees “leased” from PEO to client
- Wages reported under PEO Federal Employer Identification Number (FEIN)
- Employee benefits limited to PEO providers
- Fees included as a percentage of wages
- All-inclusive fees for HR services
- Duplication of payroll taxes upon termination
- Insurance products bundled with payroll charges
- Annual benefits renewal with no flexibility
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- Employees remain employed by client
- Wages reported under Client FEIN
- Maintain current benefits providers of choice
- All fees disclosed per employee per month
- Fees determined based on client needs
- No payroll tax duplications
- All insurance costs broken out
- Open marketing of all benefit plans
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