ADP Helps Businesses Realize the Economic Benefits of Rebuilding the United States Workforce

ROSELAND, N.J., March 18 /PRNewswire/ -- ADP ®, a leading provider of outsourced HR, payroll and benefits administration services, announced it is ready to assist its clients with specific statutory and other compliance requirements associated with the Federal HIRE Act. The Hiring Incentives to Restore Employment (HIRE) legislation was recently passed by Congress and was signed into law by President Obama today.

"The intent of the HIRE Act by Congress and the Administration is to reinvigorate the workforce," said Gary Butler, President and CEO of ADP. "While these measures will certainly be welcome by employers, staying compliant in this complex and quickly changing business environment can be a burden for companies of all sizes.  ADP is committed to making it easy for clients to remain compliant while reducing expenses and increasing cash flow."  

ADP helps clients understand and take advantage of complex employment-related tax credit legislation such as the job creation provisions within the HIRE Act.  The HIRE Act eliminates the current 6.2 percent employer Social Security tax for eligible new hires, generating immediate savings that will positively impact an employer's bottom line.  In order to obtain the credit, it also requires any new hire to certify his/her previous employment status by signed affidavit.  Additionally, companies are afforded either a significant income tax credit of $1,000 per qualifying worker once the worker is employed for at least 52 consecutive weeks, or 6.2% of wages paid to the qualifying worker over the 52-week period, whichever is less.

For clients of all sizes already using ADP payroll systems and whose new employees are eligible under the HIRE Act, ADP offers a service at no additional cost that will eliminate the employer-paid portion of the applicable Social Security tax for the benefit of the employer.

For larger companies with more complex growth and recruiting needs, ADP offers an expanded fee-based solution to help reduce their administrative burden while leveraging the tax benefits of the HIRE Act.

ADP's offering includes:

• Pre-Selection – ADP screens new hires to identify eligible employees.
• Employee Affidavits – ADP offers convenient options for new hires to complete the certification by affidavit process.
• Report Eligibility – ADP provides daily reports of the employees who are eligible.
• Compliance Support – ADP runs regular compliance reports to help ensure eligible new hires complete the affidavit process.
• Documentation and Audit Support – ADP houses and maintains all employee certification documentation and assists clients in responding to related audits.
• Tax Credit Administration – ADP notifies clients of the availability of the $1,000 per qualified employee new-hire income tax credit after the eligible employee completes 52 weeks of employment.

For more information and to obtain an estimate of a company's potential savings, please visit www.ADP.com/JobTaxCredit or call 1-888 5 ADP SAVE.

About ADP

Automatic Data Processing, Inc. (Nasdaq: ADP), with nearly $9 billion in revenue and about 570,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging 60 years of experience, ADP offers the widest range of HR, payroll, tax and benefits administration solutions from a single source. ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the world. For more information about ADP or to contact a local ADP sales office, phone 1.800.225.5237 or visit the company's Web site at www.ADP.com.

SOURCE Automatic Data Processing, Inc.