About Automatic Data Processing Inc

Automatic Data Processing, Inc. (ADP), a global technology company, provides cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration. The company serves over 1 million clients and pay over 41 million workers in 140 countries and territories. The company’s HCM technology, industry and compliance expertise and data insights deliver measurable results and peace-of-mind, and contribute to an engaged, productive workforce. The company’s leading technology and commitment to service excellence are at the core of its relationship with each one of its clients, whether it's a small, mid-sized or large organization operating in one or multiple countries around the world. The company pioneered HCM automation, HCM in the cloud, mobile HCM and a digital HCM marketplace. The company’s data is also the basis for its renowned ADP National Employment Report, which the ADP Research Institute (ADPRI) and the Stanford Digital Economy Lab recently retooled to provide a more robust, independent high-frequency view of the labor market and trajectory of economic growth in the United States. The scale and scope of the company’s client base provides it an unrivaled HCM dataset, and it is focused on converting its data advantage into its client’s data advantage. The company is doing this by differentiating its HCM solutions and providing its clients with insights that can help drive better decisions, and by continuing to identify and pursue new and additional data-as-a-service opportunities. The company is leading this innovation effort with ADP DataCloud, its award-winning machine learning (ML) and workforce analytics platform which is the largest private repository of payroll information available. DataCloud analyzes aggregated, anonymized and timely HCM and compensation data from more than 1 million organizations across the U.S., powering solutions that provide clients with in-depth workforce and business insights that enable critical HR decisions. In the U.S., ADP DataCloud's Skills Graph, the company’s proprietary data structure, is based on more than 43 million employee records, 95 million resumes and 9 million job postings across more than 20 industries and 500 geographic areas, and uses large language models to extract, align and normalize key information, such as skills, job titles and levels, education and qualifications from non-structured data and infers missing skills and qualifications from context. Skills Graph powers ADP’s Candidate Profile Relevancy tool to help score, assess and predict candidates who are the best fit for a job opening and is designed to minimize the introduction of bias by, among other things, focusing on the skills, education, and experience of an applicant. Skills Graph also powers the company’s new Organizational Benchmarking Dashboar. ADP’s Model-Based Benchmarks, powered by Skills Graph, also extend benchmarks to include compensation for up to 160 million workers. Model-Based Benchmarks are driven by a set of deep learning models that extract patterns and knowledge from millions of payroll records and job profiles to provide accurate information that reflects the reality of the position being researched. The company offers similar tools to clients outside the United States, including through its ADP GlobalView and ADP iHCM solutions. The company is also using AI to respond to the needs of HR practitioners. ADP’s data-driven Intelligent Self-Service solution uses predictive analytics and machine learning to proactively address common employee HR challenges before the need to contact their HR departments arises, freeing HR practitioners to focus on higher value initiatives. ADP’s Pay Equity Storyboard combines analytics and benchmarking to help employers better understand potential pay gaps and provide them with real, up-to-date, aggregated and anonymized market data to understand how their compensation for a particular job compares to other similar employers. Insights powered by DataCloud are particularly important with respect to diversity, equity and inclusion (DEI) and, as part of the company’s commitment to DEI, it introduced the first-of-its-kind, award-winning DEI benchmark to help companies assess DEI gaps, track their progress and achieve their goals, bolstering ADP’s suite of DEI offerings. In harnessing the power of data through ML, ADP recognizes the importance of accountability, transparency, privacy, explainability and governance, and in furtherance of those goals has established an active AI & Data Ethics Committee, consisted of both industry leaders and ADP experts, which advises on emerging industry trends and concerns and provides guidance with respect to compliance with the principles that ADP should follow while developing products, systems and applications that involve AI, ML and data. The company’s next-gen payroll platform is a global solution that supports workers of all types and enables real-time, transparent, continuous payroll calculations. This next-gen payroll platform also unlocks flexible pay choices for the company’s clients so they can provide the best pay experience for their workers. As the regulatory environment rapidly changes, making it harder for companies to navigate the complexities of payroll, the company’s next-gen payroll platform’s built-in compliance capabilities enable its clients to focus on managing their business. Additionally, the company launched the Roll by ADP mobile-first solution – reimagining how small businesses do payroll. This groundbreaking payroll solution utilizes an AI-powered chat interface to turn traditional payroll management into an intuitive conversation that can complete payroll in under a minute. Leveraging ADP’s long-standing payroll expertise and data security, small business owners can download and self-purchase Roll and run payroll anywhere, anytime, quickly and compliantly, with no experience or training needed. The conversational experience runs off simple chat prompts, such as Run my payroll, offering a frictionless experience that also allows clients to confidently handle compliance matters like tax filing and deposits. The company’s innovative Wisely payment and financial wellness offering includes a suite of personalized banking-alternative solutions designed to give employees fast and flexible choices to access their pay and other sources of income. Wisely Pay is a network-branded paycard with a digital account, through which employees can access their pay, make purchases online and in store, deposit checks, load additional funds onto the card, and transfer funds to a bank account in the United States. Wisely also enables advanced capabilities and innovative features, such as Earned Wage Access (EWA), automatic savings options, cash back rewards and bill pay that help employees take even more control of their finances. Wisely Direct, a network-branded general purpose reloadable card that comes with a digital account, provides similar features and functionality but is offered directly to consumers. The company’s digital card offerings are banking alternatives that afford financial wellness tools designed to help members realize a better financial path forward. The company is investing in user experience (UX) alignment and simplification across its strategic products and solutions, with new UX releases for RUN Powered by ADP, MyADP, ADP Mobile Solutions and, most recently, ADP Workforce Now. In addition, the company’s ADP Mobile app simplifies how work gets done by enabling clients to process their payroll anywhere, and giving millions of their employees worldwide convenient access to their payroll and HR information in 32 languages. The company expanded employee self-service via its app by incorporating ML-based recommendations for employees to better find information, correct missing information, and complete tasks more efficiently. Segments The company operates through two segments, Employer Services and Professional Employer Organization (PEO). Employer Services: This segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a comprehensive range of technology-based HCM solutions, including its strategic, cloud-based platforms, and HRO (other than PEO) solutions. These solutions address critical client needs and include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Professional Employer Organization: The company’s PEO business, called ADP TotalSource, provides clients with comprehensive employment administration outsourcing solutions through a relationship in which employees who work for a client (referred to as worksite employees) are co-employed by it and the client. Products and Solutions In order to serve the unique needs of its clients and their diverse types of businesses and workforce models, the company provides a range of solutions which businesses of all types and sizes and across geographies can use to recruit, pay, manage, and retain their workforce. The company addresses these broad market needs with its cloud-based strategic platforms: RUN Powered by ADP, serving over 850,000 small businesses; ADP Workforce Now, serving over 80,000 mid-sized and large businesses across its strategic pillars; and ADP Vantage HCM and its next-gen HCM platform, serving large enterprise businesses. All of these solutions can be combined with ADP SmartCompliance to address the increasingly broad and complex needs of employers. Outside the United States, the company addresses the needs of over 65,000 clients with premier global solutions consisting of in-country solutions and multinational offerings, including ADP GlobalView, ADP Celergo/Streamline and ADP iHCM. HCM Solutions Integrated HCM Solutions: The company’s premier suite of HCM products offers complete solutions that assist employers of all types and sizes in all stages of the employment cycle, from recruitment to retirement. The company’s suite of HCM solutions are powered by its strategic, cloud-based, award-winning platforms, including: RUN Powered by ADP combines a software platform for small business payroll, HR management and tax compliance administration, with 24/7 service and support from the company’s team of small business experts. RUN Powered by ADP also integrates with other ADP solutions, such as workforce management, workers’ compensation insurance premium payment plans, and retirement plan administration systems. ADP Workforce Now is a flexible HCM solution used across mid-sized and large businesses in North America to manage their employees. More businesses use ADP Workforce Now in North America than any other HCM solution designed for both mid-sized and large businesses. ADP Vantage HCM is a solution for large enterprises in the United States. It offers a comprehensive set of HCM capabilities within a single solution that unifies the five major areas of HCM: HR management, benefits administration, payroll services, time and attendance management, and talent management. Payroll Services: The company pays over 25 million (approximately 1 out of every 6) workers in the United States. The company offers flexible payroll services to employers of all sizes, including the preparation of employee paychecks, pay statements, supporting journals, summaries, and management reports. The company provides employers with a wide range of payroll options, including using mobile technology, connecting their major enterprise resource planning (ERP) applications with ADP’s payroll services or outsourcing their entire payroll process to it. Employers can choose a variety of payroll payment options, including ADP’s electronic wage payment and, in the United States, payroll card solutions and digital accounts. On behalf of its clients in the United States, the company prepares and files federal, state and local payroll tax returns, and quarterly and annual Social Security, Medicare, and federal, state and local income tax withholding reports. Benefits Administration: In the United States, the company provides powerful and agile solutions for employee benefits administration. These options include health and welfare administration services, leave administration services, insurance carrier enrollment services, employee communication services, and dependent verification services. In addition, ADP benefits administration solutions offer employers a simple and flexible cloud-based eligibility and enrollment system that provides their employees with tools, communications, and other resources they need to understand their benefits options and make informed choices. Talent Management: ADP’s Talent Management solutions simplify and improve the talent acquisition, management and activation process, from recruitment to ongoing employee engagement and development. Employers can also outsource their internal recruitment function to ADP. The company’s solutions provide performance, learning, succession and compensation management tools that help employers align goals to outcomes, and enable managers to identify and mitigate potential retention risks. The company’s talent activation solutions include StandOut powered by ADP, which provides team leaders with data and insights to drive employee engagement and leadership development, which in turn help drive employee performance. Workforce Management: ADP’s Workforce Management offers a range of solutions to over 120,000 employers of all sizes, including time and attendance, absence management and scheduling tools. Time and attendance solutions include time capture via online timesheets, timeclocks with badge readers, biometrics and touch-screens, telephone/interactive voice response, and mobile smartphones and tablets. These tools automate the calculation and reporting of hours worked, helping employers prepare payroll, control costs and overtime, and manage compliance with wage and hour regulations. Absence management tools include accrued time off, attendance policy and leave case management modules. The company’s employee scheduling tools simplify visibility, offer shift-swapping capabilities and can assist managers with optimizing schedules to boost productivity and minimize under- and over-staffing. The company also offers data analytics and reporting tools that provide clients with insights, benchmarks and performance metrics so they can better manage their workforce. In addition, industry-specific modules are available for labor forecasting, budgeting, activity and task management, grant and project tracking, and tips management. Compliance Solutions: ADP’s Compliance Solutions provides industry-leading expertise in payment compliance and employment-related tax matters that complement the payroll, HR and ERP systems of the company’s clients. In its fiscal year ended June 30, 2023, in the United States, the company processed and delivered more than 79 million employee year-end tax statements and moved more than $3.1 trillion in client funds to taxing and other agencies, its clients’ employees and other payees. ADP SmartCompliance: In the United States, ADP SmartCompliance integrates client data delivered from the company’s integrated HCM platforms or third-party payroll, HR and financial systems into a single, cloud-based solution. The company’s specialized teams use the data to work with clients to help them manage changing and complex regulatory landscapes and improve business processes. ADP SmartCompliance includes HCM-related compliance solutions, such as Employment Tax and Wage Payments, as well as Tax Credits, Health Compliance, Wage Garnishments, Employment Verifications, Unemployment Claims and W-2 Management. ADP SmartCompliance Employment Tax: As part of its full-service employment tax services in the United States, the company prepares and files employment tax returns on its clients’ behalf and, in connection with these stand-alone services, collect employment taxes from clients and remit these taxes to more than 8,000 federal, state and local tax agencies. ADP SmartCompliance Wage Payments: In the United States, the company offers compliant pay solutions for today's workforce, including electronic payroll disbursement options, such as payroll cards, digital accounts and direct deposit, as well as traditional payroll checks, which can be integrated with clients’ ERP and payroll systems. Human Resources Management: Commonly referred to as Human Resource Information Systems, ADP’s Human Resources Management Solutions provide employers with a single system of record to support the entry, validation, maintenance, and reporting of data required for effective HR management, including employee names, addresses, job types, salary grades, employment history, and educational background. Insurance Services: ADP’s Insurance Services business, in conjunction with the company’s licensed insurance agency, Automatic Data Processing Insurance Agency, Inc., facilitates access in the United States to workers’ compensation and group health insurance for small and mid-sized clients through a variety of insurance carriers. The company’s automated Pay-by-Pay premium payment program calculates and collects workers’ compensation premium payments each pay period, simplifying this task for employers. Retirement Services: ADP Retirement Services helps employers in the United States administer various types of retirement plans, such as traditional and Roth 401(k)s, profit sharing (including new comparability), SIMPLE and SEP IRAs, and executive deferred compensation plans. ADP Retirement Services offers a full service 401(k) plan program which provides recordkeeping and administrative services, combined with an investment platform offered through ADP Broker-Dealer, Inc. that gives the company’s clients’ employees access to a wide range of non-proprietary investment options and online tools to monitor the performance of their investments. In addition, ADP Retirement Services offers investment management services to retirement plans through ADP Strategic Plan Services, LLC, an SEC registered investment adviser under the Investment Advisers Act of 1940. ADP Retirement Services also offers trustee services through a third party. HRO Solutions As a leader in the growing HR Outsourcing market, the company partners with its clients to offer a full range of seamless technology and service solutions for HR administration, workforce management, payroll services, benefits administration and talent management. From small businesses to enterprises with thousands of employees, the company’s clients gain proven technology and processes and robust service and support. Whether a client chooses its PEO or other HR Outsourcing solutions, the company offers solutions tailored to a client’s specific needs and preferences – designed to meet the client’s needs today, and as its business and needs evolve. Professional Employer Organization: ADP TotalSource is enabled by ADP Workforce Now and offers small and mid-sized businesses a comprehensive HR outsourcing solution through a co-employment model. With a PEO, both ADP and the client have a co-employment relationship with the client’s employees. The company assumes certain employer responsibilities, such as payroll processing and tax filings, and the client maintains control of its business and all management responsibilities. ADP TotalSource clients are able to offer their employees services and benefits on par with those of much larger enterprises, without the need to staff a full HR department. With its cloud-based HCM software at the core, the company serves more than 16,000 clients and more than 725,000 worksite employees in all 50 U.S. states. ADP TotalSource is the largest PEO certified by the Internal Revenue Service as meeting the requirements to operate as a Certified Professional Employer Organization under the Internal Revenue Code. As a full-service PEO, ADP TotalSource provides a broad range of HR administrative services, including payroll and payroll tax, employer compliance, HR guidance, employee benefits and benefit administration, talent strategies, and workers’ compensation insurance, including risk and claims management. Some of the rich offerings available through ADP TotalSource to address today’s workplace challenges include: Better Employee Benefits: Through its PEO, many of the company’s clients discover that they can offer a richer overall benefits package than they could afford to offer on their own. The company gives clients access to a patented approach to help them target the best benefit plan offerings for their employees. They can compare plan options and make more educated decisions about what plan offering is best for their company and budget. In addition, ADP TotalSource integrates with the company’s award-winning ADP Marketplace to further tailor offerings, such as helping employees pay off student loans with payroll contributions and integrating a client’s U.S. PEO population with its global workforce’s HR system of record. Protection and Compliance: ADP TotalSource HR experts help clients manage the risks of being an employer by advising how to handle properly a range of issues – from HR and safety compliance to employee-relations. This includes access to workers' compensation coverage and expertise designed to help them handle both routine and unexpected incidents, including discrimination and harassment claims. Talent Engagement: Featuring a talent blueprint, ADP TotalSource HR experts work with clients to help them better engage and retain their workforce through solutions that support the core needs of an employee at work. In addition, the company’s full-service recruitment team is dedicated to helping its clients find and hire new talent, while reducing the stress of uncovering top talent. Expertise: Each client is assigned a designated HR specialist for day-to-day and strategic guidance. Clients can also access data-driven benchmarks in areas, such as turnover and overtime, staffing and understanding profit leaks, and have their ADP HR expert help tailor recommendations to continue to drive their business forward. A payroll specialist is also available to clients to help them ensure their workers are paid correctly, on time and in compliance. ADP Comprehensive Services: Leveraging the company’s market-leading ADP Workforce Now platform, ADP Comprehensive Services partners with clients of all types and sizes to tackle their HR, talent, benefits administration and pay challenges with help from its proven expertise, deep experience and best practices. ADP Comprehensive Services is flexible – enabling clients to partner with the company for managed services for one, some or all areas across HR, talent, benefits administration and pay. The company provides outsourced execution that combines processes, technology and a robust service and support team that acts as an extension of its client’s in-house resources – so their HCM and pay operations are executed with confidence. ADP Comprehensive Outsourcing Services (ADP COS): ADP COS is designed for large business outsourcing for payroll, HR administration, workforce management, benefits administration and talent management. With ADP COS, the day-to-day payroll process becomes the company’s responsibility, freeing up clients to address critical issues like employee engagement and retention. The combination of technology, deep expertise and data-driven insights that ADP COS offers is powerful, allowing clients to focus on strategy and results. ADP Recruitment Process Outsourcing Services (ADP RPO): ADP RPO provides deep talent insights to help drive targeted recruitment strategies for attracting top talent. With global, customizable recruitment services, ADP RPO enables organizations to find and hire the best candidates for hourly, professional or executive positions. In addition, the company delivers market analytics, sourcing strategies, candidate screening, selection and on-boarding solutions to help organizations connect their talent strategy to their business's priorities. Global Solutions The company’s premier global solutions consist of multi-country and local in-country solutions for employers of any type or size. The company partners with clients to help them navigate the most complex HR and payroll scenarios using tailored and scalable technology supported by its deep compliance expertise. ADP Global Payroll is a solution for multinational organizations of all sizes, empowering them to harmonize HCM strategies in 140 countries globally. This improves visibility, control and operational efficiency, giving organizations the insight and confidence to adapt to changing local needs, while helping to drive overall organizational agility and engagement. The company also offers comprehensive, country-specific HCM solutions that combine innovative technology with deep local expertise. By operating a flexible service model, the company helps clients manage various combinations of payroll services, HR management, time and attendance management, talent management and benefits management, depending on the country in which the solution is provided. The company pays over 15 million workers outside the United States with its in-country solutions and with ADP GlobalView, ADP Celergo/Streamline and ADP iHCM – its simplified and intuitive multi-country solutions. As part of its global payroll services, the company supplies year-end regulatory and legislative tax statements and other forms to its clients’ employees. The company’s global talent management solutions elevate the employee experience, from recruitment to ongoing employee engagement and development. The company’s comprehensive HR solutions combined with its deep expertise make its clients’ global HR management strategies a reality. The company’s configurable, automated time and attendance tools help global clients understand the work being performed and the resources being used, and help ensure the right people are in the right place at the right time. Markets and Sales The company’s HCM solutions are offered in 140 countries and territories across North America, Latin America, Europe, Asia and Africa. The most material markets for HCM Solutions, Global Solutions and HRO Solutions (other than PEO) are the United States, Canada and Europe. In each market, the company has both country-specific solutions and multi-country solutions, for employers of all sizes and complexities. The major components of the company’s offerings throughout these geographies are payroll, HR outsourcing and time and attendance management. In addition, the company offers wage and tax collection and/or remittance services in the United States, Canada, the United Kingdom, Australia, India and China. The company’s PEO business offers services exclusively in the United States. The company markets its solutions primarily through its direct sales force. The company also markets HCM Solutions, Global Solutions and HR Outsourcing (HRO) Solutions through indirect sales channels, such as marketing relationships with certified public accountants and banks, among others. None of the company’s major business units has a single homogeneous client base or market. Clients and Client Contracts The company provides services to more than 1 million clients. The company is continuously in the process of performing implementation services for new clients. Strategy The key elements of the company’s strategy include leading with best-in-class HCM technology; providing unmatched expertise and outsourcing solutions; and benefiting its clients with its global scale. Regulation As one of the world’s largest providers of HCM solutions, the company’s systems contain a significant amount of sensitive data related to clients, employees of its clients, vendors and its employees. The company is, therefore, subject to compliance obligations under federal, state and foreign privacy, data protection, artificial intelligence (AI) and cybersecurity-related laws, including federal, state and foreign security breach notification laws with respect to both client employee data and its own employee data. The changing nature of these comprehensive laws in the United States, Europe and elsewhere, including the European Union’s (the EU) General Data Protection Regulation (the GDPR) and the California Privacy Rights Act of 2020 (the CPRA), impact the company’s processing of personal information of its employees and on behalf of its clients. The GDPR imposes strict and comprehensive requirements on the company as both a data controller and a data processor. As part of its overall data protection compliance program, including with respect to data protection laws in the EU, the company is one of the few companies in the world to have implemented Binding Corporate Rules (BCRs). Compliance with its BCRs permits the company to process and transfer personal data across borders in accordance with the GDPR and other data protection laws in the EU. The CPRA requires companies to provide data disclosure, access, deletion and opt-out rights to consumers in California. In the area of artificial intelligence, some states and localities in the U.S. have proposed or already enacted legislation and proposals are pending in the European Union and elsewhere that would impose obligations on how the company develops and markets AI-based products and solutions. Additionally, self-regulatory frameworks like the National Institute of Standards and Technology AI Risk Management Framework are being promulgated and adherence to these may become an industry standard or client expectation. In the United States, the Health Insurance Portability and Accountability Act of 1996 applies to the company’s insurance services businesses and ADP TotalSource. In 2019, the Office of the Comptroller of Currency (the OCC) authorized the company to open ADP Trust Company, National Association (the ADP Trust Bank), via a national trust bank charter pursuant to the National Bank Act. The ADP Trust Bank is the sole trustee of ADP Client Trust, the company’s grantor trust which holds U.S. client funds, and is responsible for the oversight and management of those client funds. The ADP Trust Bank, and all of its fiduciary activities, including the U.S. money movement it oversees and manages via ADP Client Trust, is subject to comprehensive ongoing oversight and regulation by the OCC. In addition, the company’s U.S. money movement managed by the ADP Trust Bank and its U.S. prepaid access offering are subject to the anti-money laundering and reporting provisions of The Bank Secrecy Act of 1970, as amended by the USA PATRIOT Act of 2001 (the BSA). The company’s employee background screening services business offers background checking services that are subject to the Fair Credit Reporting Act. ADP TotalSource is subject to various state licensing requirements and, as a Certified PEO, maintains certifications with the Internal Revenue Service. ADP Strategic Plan Services, LLC, the company’s registered investment adviser, provides certain investment management and advisory services to retirement plan administrators under a heightened fiduciary standard and is regulated by the Securities and Exchange Commission (SEC) and the U.S. Department of Labor. ADP Broker-Dealer, Inc., which supports the company’s Retirement Services business, is a registered broker-dealer regulated by the SEC and the Financial Industry Regulatory Authority (FINRA). In addition, the company’s HCM solutions help clients manage their compliance with certain requirements of the Affordable Care Act in the United States. Similarly, the company’s Tax Credit Services business, which helps clients in the United States take advantage of tax credit opportunities in connection with the hiring of new employees and certain other activities, is based on federal, state or local tax laws and regulations allowing for tax credits, which are subject to renewal, amendment or rescission. History Automatic Data Processing, Inc. was founded in 1949. The company was incorporated in 1961.