Statement by Gary Butler, President and CEO, ADP, Inc. Following Passage of the HIRE Act by the U.S. Senate
ROSELAND, N.J., March 17 /PRNewswire-FirstCall/ --
"Far too many Americans are unemployed, yet many small- and medium-sized businesses remain at the cusp of resuming hiring. The HIRE Act passed today by the U.S. Senate and that will be signed into law by President Obama is the right piece of legislation at the right time," said Gary Butler, President and CEO of ADP, Inc.
"The HIRE Act provides incentives for businesses to hire new employees now rather than in the future. For the employer, the HIRE Act is a direct boost to their bottom line. Incentives for businesses are straightforward, immediate and are available for each job created."
"Congress and the Administration should be commended for passing the HIRE Act because it will help employers and encourage job creation. The only question is whether the HIRE Act alone is enough to get Americans back to work," continued Butler.
About 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 a business' bottom line. It also requires any new hire to certify his/her previous employment status by signed affidavit. Additionally, companies are afforded a significant income tax credit of $1,000 per qualifying worker once the worker is employed for at least 52 consecutive weeks.
The intent of the HIRE Act by Congress and the Administration is to reinvigorate the workforce. While these measures are welcome by employers, staying compliant in this complex and quickly changing business environment can be a burden for companies of all sizes. ADP ®, the leading provider of outsourced HR, payroll and benefits administration services, is committed to making it easy for clients to remain compliant while reducing expenses and increasing cash flow.
For many employers who are stretched thin, the complexities in the bill may be tough to navigate. ADP can help in six specific ways:
- 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 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.
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 ADP, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article