ADP Employer Services produces paychecks for more than 18 million workers each payday. Mary Ryan (left), Payroll Manager at Dell Computer Corporation in Austin, Texas, presents a paycheck to Don L. Reese (right), P4 Specialist.
ADP Employer Services produces paychecks for more than 18 million workers each payday. Mary Ryan (left), Payroll Manager at Dell Computer Corporation in Austin, Texas, presents a paycheck to Don L. Reese (right), P4 Specialist.
Employer Services (ES), our oldest and largest business, contributes 56% of ADP’s revenue. It serves 300,000 employers with payroll, HR, tax compliance, and reporting services.
ADP pays 18 million U.S. employees and is five times the size of its nearest competitor. With a U.S. non-farm labor market of 110 million employees, ADP still has enormous growth opportunities.
Last year, Employer Services revenue grew by 13%. Our leading indicators were positive as new client sales rose 15% and client retention also improved. Three relatively small acquisitions also contributed to the strong growth.
We continue to focus on three payroll segments: the national, major and heartland markets. The national accounts segment, firms with over 1,000 employees, experienced the fastest growth, as more large companies recognized the potential of partial or total outsourced processings.
Employer Services expanded product array now includes extremely popular client site servers for payroll, human resource (HR), and benefits administration processing. Using advanced technology and fourth generation tools, each client can mix and match many solutions that best fit their needs and preferences.
Above: ADP’s PC Payroll system with client site report writing is a powerful management tool for query and analysis. Ruth Nalley (standing), Lead Payroll Clerk, and Deborah Henley, Payroll Associate at Motorola Computer Group, a division of Motorola’s General Systems Sector, review audit reports at their Tempe, Arizona facility.
Autopay is ADP’s most popular, flexible, and comprehensive payroll product with over 200,000 clients. It is provided and supported in 39 regional processing centers. In addition, for small clients we offer EasyPay, a simple, low-cost payroll solution. For small clients who prefer client site processing on PC’s, we have a software and help desk product called SoftPay. We also offer Peachtree, a PC-based accounting package that has been sold through retail channels to over 500,000 users.
Our most popular complement to payroll is payroll tax filing and funds transmission for 85% of our payroll clients. Last year, ADP filed over 10.5 million quarterly payroll tax returns with the 2,000 U.S. regulatory authorities that have income taxes.
Total Time, our automated time and attendance system seamlessly integrates with client site timeclocks directly to ADP’s payroll computers in 39 centers. Over 1,600 clients now use Total Time to eliminate clerical processes, costs and errors by electronically entering attendance data into a payroll system. The potential for this rapidly growing product is substantial.
Employer Services recently introduced its new Full Service Direct Deposit (FSDD) product in association with some major bank partners. It is designed to permit employers to very easily, rapidly, and economically make electronic direct deposits to their employees’ bank accounts. With a simplified approval process and standardized nationwide service, we expect FSDD to become our clients’ preferred form of direct deposit.
In August 1995, ADP formed a joint venture with Checkfree Corporation to provide electronic banking and bill payment services to small businesses to help them manage their money and improve the efficiency of the accounts payable process. ADP’s Business Express electronic banking service and Checkfree’s bill payment processing capabilities will combine to satisfy a strong demand among small businesses for better cash management capabilities.
Above: New York based J. & W. Seligman & Co., an Investment Firm, has been a client of ADP for over 20 years. Joan Accordino, Payroll Manager, uses many of ADP’s services to help process Payroll and Human Resource Information. ADP’s HR Partner product helps facilitate the integration of Payroll and Human Resource reporting.
ADP’s services include four human resource (HR) systems, two 401K recordkeeping systems, and various benefits administration and consulting services. The HR systems are designed to run on standalone PC’s, area networks or client/server systems. Our human resources and 401(k) products experienced healthy growth last year.
In January 1995, we enhanced our benefits services capabilities by acquiring WTR, a leading benefits consulting and actuarial firm. ADP now provides comprehensive 401K services to over 2,000 clients. Our benefits consulting includes defined benefit plans, flexible spending plans, healthcare plans and other group benefits.
Last year, Employer Services implemented several productivity and automation programs aimed at improving client service and reducing costs. ADP’s new AutoPay Document Storage System offers large clients a paperless CD-ROM alternative to large volumes of paper. Each compact disk can quickly store and retrieve up to 80,000 pages of information…saving paper, space, shipping costs, time, and clerical labor.