What Are ADP Pay Statements?

adp-pay-statements Credit: Chris Basiaga/iStock / Getty Images Plus/Getty Images

ADP is a payroll processing company for businesses of all sizes that provides iPay statements through a web portal for employees paid through direct deposit, according to the ADP website. Organizations like Sacred Heart Health System encourage employees to sign up for these electronic pay statements that have all the information contained in a traditional paystub and are available at any time for viewing and printing.

There are more than 400,000 small businesses using ADP for their payroll, according to U.S. Bank. The company offers businesses a full-service option and a self-service option. It automatically calculates taxes and deductions for each employee and sends reminders to the business when quarterly tax payments are due. Both levels of service have the option of either paper checks or direct deposit of employee pay.

According to BankingAdvice.com, the advantages of direct deposit for employees outweigh any disadvantage. Money is in the account on payday without a need to go to the bank. It eliminates any chance of the loss of a check, and banks do not put deposits on hold waiting for the check to clear. However, some employees are reluctant to take advantage of direct deposit, primarily because they do not understand it. Some companies, such as Sacred Heart Health Systems, require all employees to receive pay through direct deposit. They issue a prepaid debit card to employees without a bank account and deposit pay to the card.