HCM Solutions for PEO, ASO and Payroll Service Providers

PEO software supports professional employer organizations (PEOs) and HR resellers in delivering HR services to small and mid-sized businesses through a co-employment model. This technology helps manage core HR functions, including payroll processing, benefits administration, compliance support and employee management. It also provides tools for applicant tracking, onboarding, ACA reporting and retirement plans.

By using cloud-based PEO solutions, business owners can outsource administrative tasks while retaining control over daily operations. PEO software improves workflows, streamlines payroll management and reduces risks related to labor laws and IRS compliance. It enables HR professionals to offer employee self-service, manage benefits packages and deliver consistent HR support across clients, making it a strategic tool for HR service providers.

1. Traditional PEO – This model uses a co-employment structure where the PEO becomes the employer of record (EOR) for tax and insurance purposes. The client business retains control over worksite activities, while the PEO provides HR software and services, including payroll, benefits management, compliance with employment laws and risk management. This is often used by small businesses to simplify HR tasks and access group health insurance and workers’ compensation coverage.

2. ASO (Administrative Services Organization) – Unlike a traditional PEO, an ASO does not enter a co-employment relationship. It handles administrative HR needs like payroll processing, benefit plans and performance management under the client's FEIN. This model is often used when the business wants to maintain full legal responsibility while outsourcing HR solutions to reduce overhead.

3. Global PEO (or International EOR) – For companies expanding internationally, a global PEO serves as the employer of record in other countries. This allows hiring new hires without setting up a local legal entity. It manages global payroll, local employment laws and employee benefits to support compliance and retention of top talent abroad.

Each type varies in how it handles responsibility, liability and pricing. The best PEO for a business depends on its structure, HR needs and growth strategy.

A reseller partner markets and delivers HR solutions under their own brand while leveraging technology and support from a provider like isolved. Through the isolved Network Partner Program, resellers gain access to isolved People Cloud™, a connected HCM platform that includes payroll, HR management, benefits administration, ACA compliance, performance management and onboarding tools for new hires.

Reseller partners can serve small businesses by offering co-branded or white-label HR software, backed by isolved’s infrastructure, updates and compliance support. The isolved Network enables resellers to scale services, meet complex HR needs and compete as a best PEO alternative with access to training, sales enablement and go-to-market resources.