An Alternate Employer Organization, or AEO, is a co-employment entity unique to Ohio. It is the only designation of its kind in the country, and only a small number of companies are licensed to operate as one.

The AEO operates as a co-employer alongside your business, assuming joint and several liability for wages, payroll taxes, and workers' compensation. That legal accountability is not optional. It is a condition of licensure. In exchange for that shared liability, your business gains access to a self-insured workers' compensation program managed by the AEO, with direct claims oversight and without surrendering your Employer Identification Number or your operational identity.

This is the core distinction between an AEO and most other employer services arrangements. The AEO is not a vendor processing your paperwork. It is a licensed co-employer with financial responsibility for your workforce outcomes. When Alloy assumes that role, we have a direct stake in how your claims are managed, how your experience modifier moves, and how your premiums develop over time.

The Ohio BWC licenses and regulates every AEO operating in the state. A company cannot call itself an AEO without BWC recognition. That registry is public, and Alloy is on it.

To understand why the AEO model matters, it helps to understand how Ohio workers' compensation works in the first place.

Ohio runs a monopolistic state fund. Employers cannot shop coverage from private carriers the way they can in most other states. Every Ohio employer pays into the BWC system, and premiums are calculated based on payroll, industry classification, and claims history. That last factor, claims history, is what drives the experience modification rate, and the EMR is what separates employers paying manageable premiums from those watching costs compound year over year.

The standard paths available to Ohio employers are the state fund, group rating programs, retrospective rating, and self-insurance. Most businesses pick one and stay in it indefinitely, even when it stops making financial sense. The AEO model is a different path. When your business enters an AEO relationship with Alloy, here is what changes:

Workers' compensation shifts to a self-insured program. Alloy is self-insured under the Ohio BWC. That means claims against your workforce are paid from Alloy's fund, not processed through the state fund. Alloy assumes the financial risk. That single shift changes every incentive in how claims are handled.

Your EIN stays with your business. Unlike a traditional PEO, an AEO files payroll taxes under your Employer Identification Number. IRS correspondence comes directly to you. Your employees' W-2s reflect your company name, not a third party. For employees applying for mortgages or loans, that distinction matters practically, not just administratively.

Alloy carries legal liability for wages and taxes. Under R.C. 4133.03, Alloy is jointly and severally liable for payroll taxes and wages even if your payment to us falls short in a given period. The BWC can audit this obligation and revoke our license if we fail to meet it. That accountability is built into the statute, not just our contract.

Claims are managed by a company with financial skin in the game. This is the operational difference that produces results. When Alloy assumes a claim, we are paying it. There is no third-party administrator absorbing fees while the file sits. There is no state fund queue. A claim that lingers costs us money directly. That is why we move fast.