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How does ADP payroll processing work?

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Quick Answer

ADP is a company that takes on certain payroll processes from their clients, which means that the clients do not need to hire payroll workers and can trust that their employees will be paid accurately and on time, according to the ADP website. ADP has various service packages for different sized companies, and specializes in processing payroll in a timely manner.

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Full Answer

If a company has fewer than 50 employees, ADP offers three different types of payroll solutions. ADP gathers all of the payroll information either through a mobile application, online or over the phone, and then ADP calculates all of the pay and taxes. ADP then delivers paychecks each pay period, which could be anything from weekly to monthly.

For companies with more than 50 but less than 1,000 employees, ADP offers two different payroll processing solutions. These solutions have the added benefits of direct deposit and management reporting functions. Finally, ADP offers several more service packages for large companies with over 1,000 employees. These large packages include web-based processing and software packages that make payroll information gathering significantly more streamlined.

Other than just payroll processing, ADP also offers several other HR services do various-sized companies, which could include services such as retirement planning and medical billing. All of the services available through ADP can be found on their website.

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