How Does ADP Payroll Work?

Answer

ADP is a company that provides payroll services to businesses of various sizes. Companies can outsource tasks such as payroll processing and payroll tax filing. This benefits business owners by improving productivity and ensures that employees are paid on time, according to ADP's website.

Small Businesses

If your business employs fewer than 50 people, ADP offers three payroll solutions. The functionality of the programs varies. You provide ADP with payroll data over the phone, online or by using a mobile app that can be installed on a smartphone. ADP payroll calculates payroll and payroll taxes, and delivers paychecks to your office at a frequency you specify---weekly, biweekly or monthly. ADP payroll can also handle direct deposit for a small business or transfer an employee's pay onto a debit card.

Mid-Sized Businesses

Businesses that employ 50 to 999 employees can select from two ADP payroll solutions: Essential or Expanded payroll. Both work by handling payroll processing, direct deposit, management reporting and processing wage garnishments. If your mid-sized business needs additional functionality, the Expanded service offers the features of the Essential service, plus the ability to track employee time off and prepare custom reports.

Large Businesses

If you employ 1,000 or more people and outsource your payroll processing to ADP, you can select from several service packages. These range from a Web-based solution to a software package hosted by ADP. In addition to payroll processing, large businesses can add other features such as self-service, which allows employees to update personal information online, and multiple payment options, including direct deposit, debit cards and traditional payroll checks.

Additional Services

Along with payroll processing, ADP offers other HR services to small, mid-sized and large businesses. These include tracking employee time and attendance, calculating workers' compensation payments, and establishing retirement plans such as 401Ks and IRAs. ADP also offers special services for medical practices, including payroll processing, insurance verification and medical billing through its AdvancedMD service.

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